Brussels, 26/04/2001 (Agence Europe) - The European Commission has approved State aid of EUR 570 million granted by Italy for the restructuring of Istituto Poligrafico e Zecca dello Stato (PZ) and to the companies that control it. It considers that, subject to implementation of a global restructuring plan proposed by the Italian state, the aid is compatible with the EU regulation in this connection.
On 28 October 1998, the Commission had opened a detailed inquiry into a series of aid schemes granted by Italy, of which the largest consists in the granting of direct subsidies, payable in several instalments over a twenty-year period covering the capital and the interests on loans contracted by PZ in order to finance restructuring of the group. PZ provides normal paper and paper for banknotes to the public administrations, and publishes the Italian official journal and all the legal acts of government. The Istituto is also responsible for minting coinage for the State and provides all stamps and official documents subject to specific security standards. The Commission felt that, at the time when Italy decided to take these measures, PZ was in a very difficult economic and financial situation and that the Italian State could not reasonably hope for a return to normal investment. These measures were therefore tantamount to State aid, as they were taken in conditions that would not have been acceptable for an investor operating in a market economy. The European Executive, however, felt that they could be approved in the context of the "Community guidelines for State aid for the rescue and restructuring of companies in difficulty", as the Italian State had proved that the measures falling within the context of a broader restructuring plan intended to restore the economic viability of the company within a reasonable time, on the basis of cautious economic assessments. In order to regain a healthy and sufficiently profitable financial situation by 2002, PZ should contribute directly to the plan in question via a series of measures including transfers such as the sale of Cartieri Miliani di Fabriano, a major paper and paper pulp production company. The Commission therefore concluded that it could approve these aid schemes contingent upon Italy effectively carrying out the restructuring plan foreseen and informing it of progress made on a regular basis.