Brussels, 02/06/2009 (Agence Europe) - On Tuesday 2 June, the European Commission authorised an Italian scheme aimed at firms that encounter financial difficulties. The scheme grants aid in the form of reduced interest rates on loans. Results of the Commission's assessment show that the scheme meets the conditions of the Commission's temporary framework for state aid measures, which gives member states additional scope to facilitate access to financing in the present economic and financial crisis, and thus to stimulate the so-called “real” economy. Companies eligible for the scheme will enjoy interest rate reductions on loans from banks or other lenders. These in turn will be compensated by national, regional and local authorities. The scheme only applies to companies that were not in difficulties before 1 July 2008, and the loan must be concluded by 31 December 2010. The Commission welcomed these conditions reached prior to the go-ahead received from the European competition authorities. A Commission official has stressed that loans will be made available by normal, private or public credit institutions, such as banks. State funds will be paid to these institutions to offset losses due to the interest rate reduction. Neelie Kroes, Competition Commissioner, said a “significant reduction in the cost of loans can be an effective way of encouraging business investment and economic recovery”. (C.D./transl.jl)