State aid: Commission approves €460,000 Italian scheme to support companies in the municipality of Campione d’Italia in context of coronavirus outbreak

The European Commission has approved a €460,000 aid scheme to support companies active in the municipality of Campione d’Italia that have been affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Campione d’Italia is a small municipality of the Province of Como (Italy) and an exclave surrounded by the Swiss canton of Ticino. The public support, which will be available to companies of all sizes active in all sectors except the financial sector, will take the form of tax advantages and, more specifically: (i) a 50% reduction in income and regional production (IRAP) taxes; and (ii) a tax credit addressed to companies carrying out investments in new capital goods in the territory of Campione d’Italia in 2020. The aim of the measure is to help companies address the liquidity shortages they are experiencing due to the coronavirus outbreak.  The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the support per company will not exceed the aid ceilings set by the Temporary Framework; (ii) the scheme will run until 31 December 2020; and (iii) the support will not be open to companies that were in difficulty before the start of the coronavirus outbreak (i.e. 31 December 2019), with the exception of micro and small companies that will be able to access the support even if their difficulties predate the outbreak in line with the Temporary Framework. 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.58300 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.