EU Commission approves EUR 245 million Italian scheme to support the textile, fashion and accessories sector in the context of the coronavirus outbreak

The Commission has approved a EUR 245 million scheme to support companies active in the textile, fashion and accessories sector affected by the coronavirus outbreak. The scheme was approved under the Temporary Framework. Under the scheme, the aid will take the form of a tax credit equal to 30 % of the value of excess in final inventories recorded in 2020 and 2021, compared to the one registered in preceding tax periods. The measure will be open to all companies active in the affected sectors.

The purpose of the measure is to mitigate the sudden liquidity shortages that eligible beneficiaries are facing due to the coronavirus outbreak and the restrictive measures that the Italian government had to implement to limit the spread of the virus. The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed EUR 1.8 million per beneficiary; and (ii) will be granted no later than December 31,  2021.

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 has 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.100204 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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