Brussels, 29/10/2001 (Agence Europe) - In a press release on Monday, European Competition Commissioner Mario Monti commented on the current examination of tax incentives for the restructuring of the banking sector in Italy, adding that his services had reached the conclusion that this is not compatible with the EU state aid rules and he would therefore be proposing that the Commission reject them. "The measures in question provide a discriminatory competitive advantage to the banks". The Commission's negative decision will entail the recovery by the Italian state of the tax that the banks did not have to pay. In contrast, the investigation into state aid to banking foundations (as distinct from banks themselves) is continuing. The Commission launched a formal investigation in October 2000 into tax incentives introduced by Law 461/98 and Decree 153/99 to decide whether they constitute state aid. The legislation in question allows banks involved in merger and restructuring transactions to have a 12.5% rebate on company tax for five years on income deposited in a special account, starting from the date of the merger or restructuring (see EUROPE of 5 October 2000, p.11). The Commission will rule on the case by the end of the year.