Brussels, 25 June 2024
The European Commission has approved amendments to an existing Italian scheme supporting companies active in Southern Italy in the context of Russia’s war against Ukraine. The amended scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’), adopted by the Commission on 9 March 2023, as amended on 20 November 2023 and on 2 May 2024.
The Commission approved the original scheme in June 2022 (SA.103289), and amendments to it in December 2022 (SA.104962) and December 2023 (SA.110596). Under the scheme, the aid takes the form of a 30% reduction of the social security contributions due by private employers active in Southern regions of Italy (Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily) that are affected by the socio-economic consequences resulting from Russia’s war against Ukraine.
Italy notified the following modifications to the existing scheme:
(i) a budget increase by €2.9 billion, bringing the overall budget from €11.4 billion to €14.3 billion; and
(ii) an extension of the period, to which the reduction of the social security contribution applies, until 31 December 2024.
The Commission found that the Italian scheme, as amended, remains necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU, and continues to be in line with the conditions set out in the TCTF. In particular, the aid will be (i) based on an estimated budget, and (ii) granted no later than 30 June 2024. On this basis, the Commission approved the amendments to the scheme under EU State aid rules.
More information on the TCTF and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.114616 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.