ANNOUNCEMENT 16 Oct 2020
In October 2020, the European Investment Bank (EIB) extended the loan granted to Piaggio in July 2019 (see related state act) by EUR 30 million (approx. USD 35.1 million).
NUMBER OF INTERVENTIONS
European Investment Bank. Financed Projects. PIAGGIO RDI VEHICLE IMPROVEMENTS. 16/10/2020. Available at: https://www.eib.org/en/projects/loans/all/20180220
European Investment Bank. Projects to be financed. PIAGGIO RDI VEHICLE IMPROVEMENTS. 04/07/2020. Available at: https://www.eib.org/en/projects/pipelines/all/20180220
European Investment Bank. Environmental and Social Data Sheet. PIAGGIO RDI VEHICLE IMPROVEMENTS. 11/10/2018. Available at: https://www.eib.org/en/registers/all/84408064
European Fund for Strategic Investments – EFSI. PIAGGIO RDI VEHICLE IMPROVEMENTS. 12/10/2018. Available at: https://www.eib.org/en/scoreboards/all/87276208
On 16 October 2020, the European Investment Bank (EIB) and Piaggio signed a second loan that extended the budget of a loan approved in July 2019 (see related state act) by EUR 30 million (approx. USD 35.1 million). This loan was oriented to support the company's research, development and innovation (RDI) activities during the period 2019-2021.
The initial approved amount was for EUR 70 million (approx. USD 79 million), to which the second loan increased the budget by EUR 30 million (approx. USD 35.1 million). The increased budget still applies for the period 2019-2021.
In particular, the project concerns RDI activities for the development of vehicle, powertrain, and process technologies; scooters; motorcycles; and light commercial vehicles.
Piaggio has its headquarters in Italy and is a producer of scooters, motorcycles, and certain commercial vehicles including parts thereof. The company is present in Viet Nam, India, China, Indonesia, and the United States.
A state act 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 granted here is discriminatory.
The EIB's approved loans to Piaggio, signed on 4 July 2019 and 16 October 2020, were backed by the European Fund for Strategic Investment (EFSI). In this sense, the second EUR 30 million (approx. USD 35.1 million) loan with Piaggio was also included in the guarantee provided by EFSI.
The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe, acting as the main pillar of the Investment Plan for Europe. It provides first-loss guarantees enabling the EIB to invest in more and often riskier projects. The loan described above was issued under the EFSI and thus benefits from a full guarantee through the EU budget.
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 favorable conditions in the form of public assumption of risk.