ANNOUNCEMENT 01 Feb 2022

In February 2022, the European Commission approved an Italian aid scheme to support companies managing and recycling aluminium waste that have seen a decline in demand for recycled material as a result of the coronavirus pandemic.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.101313 COVID-19: Aid to companies managing aluminium waste sorting and recycling plants
https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_101313

European Commission's press release, 1 February 2022, State aid: Commission approves €10 million Italian scheme to support companies recycling aluminium in the context of the coronavirus pandemic
https://ec.europa.eu/commission/presscorner/detail/es/mex_22_722

European Commission's decision. SA.101313
https://ec.europa.eu/competition/state_aid/cases1/202206/SA_101313_6052BF7E-0000-C76A-8B06-80CB35C33C30_56_1.pdf

Inception date: 01 Feb 2022 | Removal date: 30 Jun 2022

Financial grant

On 1 February 2022, the European Commission approved a EUR 10 (USD 11) million financial grant scheme from Italy. The scheme will support any aluminum waste management company of all sizes that have seen a decline in turnover during the year 2020 compared to 2019. The scheme is in force until 30 June 2022. 

Under the scheme, grants shall not exceed EUR 2,3 million per undertaking and up to 20% of their overall decrease in revenue. In order to qualify for the scheme, undertakings need to sort and recycle aluminium waste and operate a recycling plant.

In its decision, the European Commission noted that: "The measure is liable to distort competition, since it strengthens the competitive position of its beneficiaries. It also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists."

Regardless, the European Commission decided not to raise objections on the grounds that: "it is compatible with the internal market pursuant to Article 107(3)(b) of the Treaty on the Functioning of the European Union."

The 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 2020 (see related state act)

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A