In March 2014, the government of Italy announced a change in private-sector financial support.



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Official letter from the EC to Italy in English, SA.38129:

Inception date: 11 Mar 2014 | Removal date: 09 Sep 2014

Capital injection and equity stakes (including bailouts)

On 11 March 2014, theEuropean Commission allowed the Italian authorities to provide rescueaid in the form a guarantee to the Tosi Meccanica SpA.
The beneficiary is a companyfounded in 1881 manufacturing and selling steam and hydraulic turbinsfor industrial use and energy production, as well as heat exchangeapparatuses. The company is located in Legnano, the Italian region of Lombardy. It was declared insolvent in July 2013and put into extraordinary administration in the following month.
According to a specialcommissioner appointed in the context of the extraordinaryadministration, the company's "difficulties had to be found in theconstant financial deficit that characterised FTM's 'i.e. Franco Tosi Meccanica's' core activity" (para. 8, letter from the EC to Italy,Brussels 11.3.2014).
Based on the findings of theCommission, the Italian authorities shall provide the undertaking aidthrough the Ministry of Economic Development. "The measure consists of a6-month state guarantee for lines of credits that are being defined (overdraft facilities and bid/performance/advancepayments) in order to meet liquidity needs of EUR 20 million" (para.10).
Further, the Commissionpoints to the fact that the state aid "is apt to improve the competitiveposition of FTM in relation to its competitors in the internal market. It consequently distorts or threatens to distort competition and affects trade between Member States" (para.19).
A state measure in the GTAdatabase is assessed solely in terms of the extent to which itsimplementation affects the extent of discrimination against foreigncommercial interests. On this metric, the state aid proposed here is discriminatory.