Commission approves €54 million Italian scheme to support companies in the region of Abruzzo in the context of Russia's war against Ukraine

The European Commission has approved a €54 million Italian scheme to support small and medium-sized companies (‘SMEs') active in the region of Abruzzo in the context of Russia's war against Ukraine. The scheme was approved under the State Aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable member states to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.

Under the scheme, the aid will take the form of direct grants up to a maximum of €600,000 per SMEs active in the region of Abruzzo and affected by the crisis due to certain circumstances, such as increases in energy costs, decreases in turnover and trade and interruption of existing contracts or projects. The purpose of the scheme is to support investments in eligible projects, relating to industrial equipment, the modernization of existing plants or processes, or the purchase of technological tools for the implementation of innovative business models. The measure will be open to all sectors except for the financial, agriculture, fishery and aquaculture sectors, as well as sectors excluded from the scope of the de minimis Regulation.

The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will not exceed €2 million per company; (ii) will only be granted to companies affected by the crisis; and (iii) will be granted before 31 December 2023. The Commission concluded that the Italian scheme is 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 Crisis and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules.

More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia's war against Ukraine and foster the transition towards a net-zero economy can be found here. The non-confidential version of the decision will be made available under the case number SA.108490 in the State Aid register on the Commission's competition website once any confidentiality issues have been resolved.

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