Commission approves €61.5 million Italian State aid scheme to support private employers in the context of Russia’s war against Ukraine

The European Commission has approved a €61.5 million Italian scheme to support private employers in the context of Russia’s war against Ukraine. The scheme was approved under the Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 for State Aid measures to support the economy following the aggression against Ukraine by Russia. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022

Under the scheme, the aid will take the form of direct grants. The purpose of the scheme is to support private employers in Italy by exempting the payment of their social security contributions for the hiring of particularly disadvantaged workers, up to a maximum of €8000 per hiring contract. The eligible beneficiaries must hire workers during the period between 1 January 2023 and 31 December 2023, among other conditions.

The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will not exceed €250,000 per company in the agricultural sector, €300,000 per company in the fishery and aquaculture sectors, and €2 million per company in all other sectors; and (ii) will be granted no later than 31 December 2023. The Commission concluded that the Italian scheme is 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 the conditions set out in the Temporary Crisis and Transition Framework. On this basis, the Commission approved the aid measure under EU State aid rules.

More information on the Temporary Crisis and Transition Framework 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 case number SA.108654 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.