Commission approves €6 billion Italian schemes to support SMEs affected by #Coronavirus outbreak

The European Commission has approved three Italian schemes, with an overall budget of €6 billion, mainly consisting of incentives to the recapitalization by private investors of small and medium-sized enterprises (SMEs) affected by the coronavirus outbreak. The three schemes were approved directly under Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU) and the State aid Temporary Framework, respectively.

The schemes, which are complementary among each other, are designed to incentivize the mobilization of private investments. All schemes will be accessible to companies that have faced a severe reduction of revenues in March and April 2020, provided they approve and execute a capital increase. The schemes therefore aim at enhancing the access to external financing of those companies that are most severely affected by the economic impact of the coronavirus outbreak, thus helping them to ensure the continuation of their activities.

The Commission found that aid to the investees under the three schemes is in line with the conditions set out in the Temporary Framework. As regard the aid to the investors under the first scheme, the Commission assessed the measure under EU state aid rules, and in particular Article 107(3)(b) TFEU, which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance to their economy. The Commission found that the aid is in line with the principles set out in the EU Treaty and the general principles set out in the Temporary Framework.

The Commission concluded that the three schemes are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU state aid rules.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “With these three schemes, with an overall budget of €6 billion, Italy will  further support SMEs affected by the coronavirus outbreak by strengthening their capital base and facilitating their access to finance in these difficult times. The schemes aim at incentivizing private investors to help companies cope with the liquidity shortages they are facing as a result of the outbreak and continue their activity. We continue to work in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.”

The full press release is available online.

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