Commission Approves €3.5M Italian Rescue Aid To Blutec

The European Commission has approved, under EU State aid rules, Italian plans to grant a €3.5 million (US$4.18 million) public guarantee on a temporary loan to Blutec and its subsidiary, Ingegneria Italia, both active in the manufacturing of components for motor vehicles. The companies are experiencing financial difficulties and are in so-called “amministrazione straordinaria,” a form of bankruptcy administration in Italy. 

The rescue aid will provide the companies with sufficient resources to address their immediate liquidity needs. More specifically, it will help the beneficiaries access the necessary financing to decontaminate certain industrial units from toxic substances, in particular asbestos, to improve working conditions and safety and put in place other improvements, which the beneficiaries would not be able to finance at market conditions.

EU State aid rules, more specifically, the Commission’s Guidelines on rescue and restructuring aid allow member States to support companies in difficulty, provided, in particular, that the public support measures are properly remunerated, limited in time and scope and that they contribute to an objective of common interest.

Full Content: EuReporter

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