On Thursday 17 September, the European Commission authorised Italian aid worth €44 billion to support large companies whose activities have been affected by the Covid-19 pandemic. This support has been authorised under the State aid Temporary Framework.
For Margrethe Vestager, Executive Vice President responsible for competition policy, the scheme will support large companies “by strengthening their capital base and facilitating their access to finance in these difficult times”.
The scheme consists of four measures to support large companies through recapitalisation instruments (equity and hybrid capital instruments).
In combination with the Italian scheme for small and medium-sized enterprises, approved by the Commission on 31 July 2020, the Italian measures aim to support the solvency of a wide range of companies have been affected by the Covid-19 pandemic, thereby helping them to ensure the continuation of their activities and supporting employment.
The scheme is aimed at large companies facing a severe reduction of revenues in 2020. To be eligible, among other criteria, the companies should be considered strategic for the economy and for the labour markets.
The measures provided for are: equity injections; mandatory convertible bonds; convertible bonds, upon request of either the beneficiary or the bondholder; subordinated debt. (Original version in French by Lionel Changeur)