EC Approves €31.9 Bln Plan to Support Companies Affected by Corona

The European Commission (EC) approved an Italian plan worth € 31.9 billion, to support companies affected by the outbreak of the Coronavirus under the temporary framework of assistance to member states.

In a press release published by the Commission on its official website today, Margrethe Vestager, Executive Vice President of the Commission and responsible for competition policies in the European Commission, said that many companies in Italy "have experienced a significant decrease in their revenues due to the outbreak of COVID-19 and the measures necessary to limit its spread.

This scheme of €31.9 billion will enable the Italian companies to continue to work in close cooperation with member states to find practical solutions to mitigate the economic negative impact of the coronavirus outbreak, in line with European Union laws.

Under the interim framework, Italy had notified an aid plan sponsored by the European Commission of  31.9 billion euros to support businesses affected by the coronavirus and the restrictive measures that the Italian government should implement to limit the spread of the virus.

The plan consists of two measures; the first of them is to subsidize the uncovered fixed costs that were incurred during the period between March 2020 and December 2021 or parts of that period, as it will be available to all companies, regardless of their size and sector in which they operate (except for the financial sector), according to the statement.

Finally, the statement said that under this plan, limited amounts of aid will take the form of tax credits and cuts; or direct grants.

Since most of the aid will be granted automatically and the cap on the aid will not only apply to the direct beneficiary but also to its subsidiaries.