ANNOUNCEMENT 09 Apr 2021

In April 2021, the European Commission approved a EUR 2.5 billion (approx. USD 2.97 billion) budget extension for the EUR 10 billion umbrella scheme Regime Quadro. Introduced in May 2020, this scheme consists of several financial support measures for businesses affected by the COVID-19 pandemic in Italy and already experienced a budget increase in December 2020 (see related state acts).

NUMBER OF INTERVENTIONS

4

  • 4 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.62495 COVID-19: amendment to SA.57021 – Regime Quadro– prolongation of the measures and increase of the aid ceilings related to the measures 3.1 and 3.12 of the Temporary Framework. Available at: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_62495

European Commission Decision, Subject: SA.62495 (2021/N) – Italy – COVID-19: amendment to SA.57021 – Regime Quadro – prolongation of the measures and increase of the aid ceilings related to the measures 3.1 and 3.12 of the Temporary Framework. Available at: https://ec.europa.eu/competition/state_aid/cases1/202116/293454_2264684_56_2.pdf

SA.100833 COVID-19: Prolongation of the schemes SA.57005 and SA.57252 (2020/N), as already amended
https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_100833

European Commission's decision. SA.100833
https://ec.europa.eu/competition/state_aid/cases1/202204/SA_100833_C0EF677E-0000-C462-8717-6E546477FFAB_30_1.pdf

Inception date: 09 Apr 2021 | Removal date: 30 Jun 2022

State loan

On 9 April 2021, the European Commission approved an increase of EUR 2.5 billion (approx. USD 2.97 billion) to the budget of the Regime Quadro scheme in Italy, which aims at supporting Italian companies affected by the COVID-19 pandemic. Also, the coverage period of the scheme was prolonged until 31 December 2021. The public support under this programme can take multiple forms, being favourable loans one of them.

Regime Quadro was introduced in May 2020 with an estimated budget of EUR 9 billion, which was extended in December 2020 to EUR 10 billion (see related state acts). The scheme is implemented, financed and managed by several entities across Italy, including the Italian Regions and Autonomous Provinces and the Chambers of commerce.

All undertakings are eligible, regardless of their size and sector, except credit and financial institutions. Other forms of public support under Regime Quadro include financial grants, interest payment subsidies, loan guarantees (see related interventions), as well as investment support for coronavirus-related R&D activities and wage subsidies.

Other amendments include the increase of maximum aid amount from EUR 800,000 to EUR 1.8 million per undertaking, and the potential transformation of support granted in the form of loans, guarantees and other repayable instruments to financial grants provided that the conversion takes place before 31 December 2022.

For further information on the scheme and the previous EC decisions, please see related state acts.

On another note, the Commission highlighted in its May decision that “the measure is liable to distort competition since it strengthens the competitive position of its beneficiaries” and it “also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”. Regardless, the Commission has approved again the amended aid scheme, without raising objections, concluding that it “is compatible with the internal market pursuant to Article 107(3)(b) and Article 107(3)(c) of the TFEU”.

The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act.

On 16 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022. 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 09 Apr 2021 | Removal date: 30 Jun 2022

Loan guarantee

On 9 April 2021, the European Commission approved a second budget increase of EUR 2.5 billion (approx. USD 2.97 billion) for the Regime Quadro scheme, an Italian scheme aiming at supporting Italian companies affected by the COVID-19 pandemic. The aid can be granted in various forms, including loan guarantees, and until 31 December 2021, thanks to the prolongation approved by the Commission.

Following the previous Commission decisions, the budget for Regime Quadro totals EUR 12.5 billion (see related state acts). All undertakings are eligible except for the financial sector, and the support can also take other forms, among others: financial grants, interest payment subsidies or favourable loans (see related interventions).

Other amendments include the increase of maximum aid amount from EUR 800,000 to EUR 1.8 million per undertaking, and the potential transformation of support granted in the form of loans, guarantees and other repayable instruments to financial grants provided that the conversion takes place before 31 December 2022.

For further information on the scheme and the previous EC decisions, please see related state acts.

This state aid is approved under the Temporary Framework under the State Aid and its amendments. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act.

On 16 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022.

 
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Inception date: 09 Apr 2021 | Removal date: 30 Jun 2022

Financial grant

On 9 April 2021, the European Commission approved a second budget increase of EUR 2.5 billion (approx. USD 2.97 billion) for the umbrella scheme Regime Quadro, which was initially estimated at EUR 9 billion and subsequently expanded to EUR 10 billion (see related state acts). The scheme aims at supporting Italian companies affected by the COVID-19 pandemic, and the aid can be granted in multiple forms, including financial grants. The approved amendment prolonged its coverage until 31 December 2021.

Other amendments include the potential transformation of support granted in the form of loans, guarantees and other repayable instruments to financial grants provided that such conversion takes place before 31 December 2022. The maximum aid amounts were also increased from EUR 800,000 to EUR 1.8 million per undertaking.

Eligible companies include all undertakings, irrespective of their size and sector, except credit and financial institutions. Other forms of public support under the present scheme include, among others, favourable loans, interest payment subsidies and loan guarantees (see related interventions).

For further information on the scheme and the previous EC decisions, please see related state acts.

This state aid is approved under the Temporary Framework under the State Aid and its amendments. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act.

On 16 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022.

 
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Inception date: 09 Apr 2021 | Removal date: 30 Jun 2022

Interest payment subsidy

On 9 April 2021, the European Commission approved a second budget increase of EUR 2.5 billion (approx. USD 2.97 billion) for the umbrella scheme Regime Quadro, an Italian scheme aiming at supporting Italian companies affected by the COVID-19 pandemic. Under this programme, the aid can be granted in multiple forms, including interest subsidy payments. In addition, thanks to the approved amendment, its coverage period has also been prolonged until 31 December 2021.

The scheme was introduced in May 2020 with an estimated budget of EUR 9 billion, which was extended in December 2020 to EUR 10 billion (see related state acts). The scheme is implemented, financed and managed by several entities across Italy, including the Italian Regions and Autonomous Provinces and the Chambers of commerce.

Eligible companies include all undertakings, irrespective of their size and sector, except for the financial sector. Other forms of public support under the present scheme also include favourable loans, interest payment subsidies and loan guarantees (see related interventions), as well as investment support for coronavirus-related R&D activities and wage subsidies.

For further information on the scheme and the previous EC decisions, please see related state acts.

This state aid is approved under the Temporary Framework under the State Aid and its amendments. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act.

On 16 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022.

 
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