On Friday 18 January, the European Commission approved an Italian public support measure for Cassa di Risparmio di Genova e Imperia (Banca Carige).
This measure will take the form of a state guarantee on securities issued by the banking institution for a total of €3 billion. In exchange for this state guarantee, Banca Carige will pay a fee to the Italian government.
Considering that this measure was targeted, proportionate and limited in time and scope, the Commission concluded that it was compatible with EU state aid law, in particular the 2013 Banking Communication.
The question of this support for Banca Carige was recently brought to the table of discussions between the Commission and the government led by Giuseppe Conte. While the ruling parties, the 5-star Movement and the League, criticised public support for banking institutions when they were in opposition, the government had a decree adopted in early January paving the way for such assistance.
The Commission then stated that such aid, if approved, would be subject to "conditions" in order to comply with EU law (see EUROPE 12167). (Original version in French by Lucas Tripoteau)