ANNOUNCEMENT 22 May 2015In May 2015, the government of Italy announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
EFSI Information Sheet on Arvedi. Available at
European Commission (20 July 2015): The Investment Plan for Europe: Questions and Answers. Available at http://europa.eu/rapid/press-release_MEMO-15-5419_en.htm
EIB: European Fund for Strategic Investments - Questions and Answers. Available at http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf
On 22 May 2015, the European Investment Bank initiated the Arvedi Modernisation Programme as part of the European Fund for Strategic Investments (henceforth: EFSI).
The programme will receive EFSI financing of 100 million EUR, which will be used to modernise two production plants, develop new products and promote R&D. The total volume of the project is 294 EUR million with the remainder coming from private sources.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk. As described in the European Commission's Fact Sheet form 20 July 2015:
"The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions."Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the state aid proposed here is discriminatory.