ANNOUNCEMENT 17 Nov 2015

In November 2015, the government of Italy announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



EFSI Information Sheet about the project. Available at
http://www.eib.org/projects/pipeline/2015/20150316.htm

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

EIB information sheet
http://www.eib.org/projects/loans/2015/20150316.htm


Inception date: 17 Nov 2015 | Removal date: open ended

State loan

 On 17 November 2015, the European Investment Bank agreed to provide 30 million EUR for the renovation of the Milazzo refinery, north off the coast of Sicily, as part of the European Fund for Strategic Investments (henceforth: EFSI).
According to the EFSI information sheet, the funds will be used to improve the energy efficiency of the refinery, construct a sulphur-recovery unit and make adjustments in order to comply with Italian environmental legislation.
The financing provided by EIB will mobilise investments of 225.4 million EUR.
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 investment support proposed here is discriminatory.
Update
On 4 April 2016 and 20 May 2016, the refinery received additional 40 million EUR of investment support each, raising the total amount of financing offered by EIB to 110 million EUR.

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