State aid: Commission approves €175 million Italian scheme to support companies operating in the tourism and thermal bath sectors affected by coronavirus outbreak

The European Commission has approved a €175 million Italian scheme to support companies operating in the tourism and thermal bath sectors affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support will take the form of an exemption from the obligation to pay certain social contributions. The scheme aims to reduce the labour costs borne by private employers active in the tourism and thermal bath sectors, with a view to preserve employment levels in the context of the coronavirus outbreak. The measure provides for a total exemption from the payment of employers’ social security contributions (except for contributions to insurance for accidents at work), for a maximum period of three months. The measure applies to those employers active in the tourism and thermal bath sectors who hire workers with new fixed-term employment contracts or seasonal contracts for the period from 15 August to 31 December 2020. The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per company; and (ii) the scheme is limited in time until 31 December 2020. The Commission concluded that the measure 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 Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.59295 in the State aid register on the Commission’s