Brussels, 27/12/2001 (Agence Europe) - The European Commission has initiated detailed investigation proceedings concerning EUR 122 million aid Italy has earmarked for the Iveco plant in Foggia.
The planned regional aid was notified by Italy in 2001 to support investment Iveco is planing to make in its engine plant in Foggia (Puglia). The region is covered by the derogation for regional aid under Article 87(3) of the Treaty, whereby investment aid of up to 35% can be granted, under certain conditions, for the 2000-2006 period. As required under the derogation procedure, Iveco carried out a cost-benefit analysis, comparing the Bielsko Biala site in Poland with Foggia. The Commission is not yet convinced by the results of the cost-benefit analysis since it does not prove the reported cost disadvantage of Foggia compared with the Polish site and therefore the Commission has decided to launch a detailed investigation.