ANNOUNCEMENT 05 Nov 2013

In November 2013, the government of Italy announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 18 Dec 2013 | Removal date: open ended
Still in force

Loan guarantee

On 5 November 2013, Italy notified the EC about its intention to rescue ACC Compressors S.p.A., a manufactuer of compressors for refrigerators.
 
ACC was declared insolvent on 28 June 2013 and needed to raise new money to cover liquidity needs. The State accepted to guarantee for lines of credit up to EUR 13.6 million for a maximum period of six month.
 
The EC states that: 'By granting ACC access to liquidity which it would not otherwise obtain at market conditions, the State guarantee is apt to improve the competitive position of ACC in relation to its competitors in the internal market. It consequently distorts or threatens to distort competition and affects trade between Member States.' (para. 18, letter from the EC to Italy, Brussels 18 December 2013)
 
The EC also provides a short market analysis and confirms the existence of 'competition in the EU'. The EC further specifies the competitors as the German 'SECOP'and other 'non-EU producers' on the market (para. 17)
 
The list of affected countries is based on the top 20 exporting countries of compressors for refrigerators.
 
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.
 

AFFECTED SECTORS