State aid: Commission approves €20 million Italian scheme to support companies active in road passenger transport affected by coronavirus outbreak

The European Commission has approved a €20 million Italian scheme to support companies active in road passenger transport affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The aid will take the form of direct grants. The scheme is open to bus companies that operate road passenger transport services on medium and long-haul routes that are not subject to a public service obligation (‘PSO’). The purpose of the measure is to mitigate the sudden liquidity shortages that the affected companies are facing due to the coronavirus outbreak. The Commission found that the Italian measure is in line with the conditions set out in the Temporary Framework. In particular, the support (i) will not exceed €1.8 million per company; and (ii) will be granted no later than 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, pursuant to Article 107(3)(b) of the TFEU and of the conditions of 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.62718 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved