On 20 March 2020, the Italian authorities notified the European Commission of their intention of establishing an aid scheme to support Italian companies' projects related to the production of medical devices and personal protective equipment. Such projects cover the establishment of new facilities, expansion of existing facilities or converting their production line for the purpose to produce the subject goods. These goods more specifically include ventilators as well as masks, goggles, gowns, safety suits, shoes utilised as personal protective equipment. The beneficiaries of the scheme are companies of any size located in Italy.

The Commission approved the scheme on 22 March 2020. The scheme has a total budget of EUR 50 million (approx. USD 53.8 million) and is in force until 31 December 2020.

More specifically, beneficiaries of the scheme receive interest-free repayable advances to cover up to 75% of the eligible costs related to the production project with a maximum allowance of EUR 800,000. Under the scheme, a beneficiary will initially receive an interest-free repayable advance. However, if the project is implemented and the subject goods are available within a certain period between 25% and 100% of the interest-free loan is converted into a financial grant, see related intervention. 

In this context, Margrethe Vestager, Executive Vice President and in charge of competition policy, stated in a press release: "These are very difficult times, especially in Italy. We have to do what we can to mitigate the impact of the Coronavirus outbreak on human lives and livelihoods. The Italian scheme approved today, shortly after the adoption of our new State aid Temporary Framework, will support companies ready to produce and supply medical equipment and masks. These are needed urgently. We will continue to work with Member States to ensure timely, coordinated and effective action."

The European Commission adoption of a Temporary Framework under the State Aid rules of the European Union was adopted on 19 March, see related state act. 

On 10 December 2020, the European Commission issued a decision under state aid case 59655 extending the coverage period of the scheme until 30 June 2021.