Brussels, 17/09/2003 (Agence Europe) - The European Commission has decided to open a formal inquiry into an aid regime instituted by an Italian law for companies making investments in areas hit by natural disasters during 2002. At this point, the Commission feels that the Italian legislation (which actually extends a 2001 law) is unduly favourable to certain companies, and includes elements of state aid.
The legislation related to the following natural disasters: the volcanic eruptions on Etna in the Sicilian province of Catania, the earthquakes of 31 October 2002 in the province of Campobasso, and the unprecedented floods that damaged the regions of Liguria, Lombardy, Piedmont, Veneto, Friuli Venezia Giulia and Emilia Romagna. During a preliminary examination, the Commission assessed whether the measures were eligible to benefit from the exemptions provided for in the EC Treaty on aid to remedy damage caused by natural disasters or other extraordinary events. It stated that the regime does not contain any elements which allows the interventions to be viewed in this way, but that it is more a question of measures favouring investment. The Commission looked into whether, as aid to investment, the measures could benefit from the exemption in the Treaty for regional aid and/or aid to small and medium enterprises. Here again, the Italian provisions lack clarity. The opening of a formal procedure will allow the Commission to obtain clarification from the Italian authorities and from interested parties.