IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 22 Mar 2020 | Removal date: 30 Jun 2021

State loan

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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

271 Made-up textile articles
6307 Other made up articles, including dress patterns.
630790 Other
282 Wearing apparel, except fur apparel
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392620 Articles of apparel and clothing accessories (including gloves, mittens and mitts)
6116 Gloves, mittens and mitts, knitted or crocheted.
611610 Impregnated, coated or covered with plastics or rubber
6210 Garments, made up of fabrics of heading 56.02, 56.03, 59.03, 59.06 or 59.07.
621010 Of fabrics of heading 56.02 or 56.03
621020 Other garments, of the type described in subheadings 6201.11 to 6201.19
621030 Other garments, of the type described in subheadings 6202.11 to 6202.19
621040 Other men's or boys' garments
621050 Other women's or girls' garments
6216 Gloves, mittens and mitts.
621600 Gloves, mittens and mitts.
6505 Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hairnets of any material, whether or not lined or trimmed.
650500 Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hairnets of any material, whether or not lined or trimmed.
362 Other rubber products
4015 Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanised rubber other than hard rubber.
401511 Surgical
401519 Other
481 Medical & surgical equipment & orthopaedic appliances
9019 Mechanotherapy appliances; massage apparatus; psychological aptitudetesting apparatus; ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus.
901920 Ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus
9020 Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters.
902000 Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters.
483 Optical instruments & photographic equipment; parts thereof
9004 Spectacles, goggles and the like, corrective, protective or other.
900490 Other

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