Italian non-EU flash trade balance actual 5.26B (forecast -, previous 2.18B)

Italian non-EU flash trade balance actual 5.26B (forecast -, previous 2.18B)

The European Commission has approved a €400 million Italian state aid scheme aimed at supporting investments in the decarbonization of industrial production processes. This initiative aligns with the European Union's Green Deal Industrial Plan and is designed to foster a transition towards a net-zero economy [1].

The scheme, approved under the State aid Temporary Crisis and Transition Framework (TCTF), seeks to reduce greenhouse gas emissions from production processes by at least 40% and/or reduce energy consumption by at least 20% compared to current levels. The aid will be provided in the form of direct grants and subsidized loans and will be available to investments enabling the substitution of fossil fuels with renewable hydrogen or renewable hydrogen-derived fuels, as well as investments leading to significant energy efficiency improvements [1].

The Commission found that the Italian scheme meets the conditions set out in the TCTF, including a cap of €200 million per beneficiary and a deadline of 31 December 2025. Additionally, the scheme includes measures to limit undue distortions of competition, such as a claw-back mechanism for windfall profits and a restriction on increasing production capacity by more than 2% [1].

The Commission concluded that the scheme is necessary, appropriate, and proportionate to accelerate the green transition and facilitate the development of certain economic activities that are crucial for implementing the REPower EU Plan and the Green Deal Industrial Plan. The approval was made under EU State aid rules, ensuring compliance with Article 107(3)(c) TFEU and the conditions outlined in the TCTF [1].

The non-confidential version of the decision will be available in the State aid register on the Commission's competition website under the number SA.109439 once any confidentiality issues are resolved [1].

References:
[1] https://www.pubaffairsbruxelles.eu/eu-institution-news/commission-approves-e400-million-italian-state-aid-scheme-to-support-decarbonisation-of-industrial-processes-to-foster-the-transition-to-a-net-zero-economy/