ANNOUNCED AS TEMPORARYNo
On 23 December 2015, the European Commission announced that state aid granted to the Italian bank Tercas was incompatible with the single market and had to recovered.
The state aid was granted to the bank on 7 July 2014 in the form of 265 million EUR of non-repayable contributions, a 35 million EUR three-year guarantee and up to 30 million EUR guarantee for the cover of potential taxes related to the contributions mentioned above.
According to the EC, "The only form of aid similar to a grant in the 2013 Banking Communication is aid for recapitalisation. However, recapitalisation requires a number of compatibility criteria to be fulfilled: there must be: (i) a capital raising plan, outlining all possibilities available for the bank in question to raise capital from private sources, (ii) a restructuring plan that will lead to the restoration of the viability of the financial institution, (iii) a sufficient contribution on the part of the beneficiary itself, with holders of capital and subordinated debt instruments contributing as much as possible (burden-sharing), and (iv) measures sufficient to limit the distortion of competition. While a capital raising plan may have been implemented by Tercas's special administrator (see recital 15), the Commission has not been provided with evidence that the compatibility requirements described here have been met" (par.188, letter from the EC to Italy, 23.12.2015).
The Commission therefore concluded that "Thus, given that the measures in question were implemented in violation of Article 108(3) of the Treaty, and are to be considered unlawful and incompatible aid, and given that recovery would not be contrary to a general principle of Union law, they must be recovered in order to re-establish the situation that existed on the market beforehand. The period in respect of which aid is to be recovered is the period from when the beneficiary first enjoyed the advantage, that is to say when the aid was put at the beneficiary's disposal, until the date of effective recovery, and the sums to be recovered should bear interest until the date of effective recovery" (par. 235).
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
⚑ Please report this page in case you detect an inaccuracy in its content.