The European Commission gave its blessing on Friday, September 4, to the Italian government’s plan to pump €199.45 million (US$236.12 million) into Alitalia, as Rome continues to throw money at its embattled flag-carrying airline, reported Euractiv.
The €200 million grant is intended to compensate Alitalia for damages incurred by the coronavirus pandemic, and EU competition regulators stated the bailout is in line with Union law.
According to the Commission, the money “will compensate the damage suffered by Alitalia that is directly linked to the coronavirus outbreak” and “does not exceed what is necessary to make good the damage.”
EU law allows governments to pump cash into struggling companies that suffer “damage directly caused by exceptional occurrences.” In a statement, the EU executive reiterated that the virus outbreak qualifies as “exceptional.”
A report by an Italian parliament committee had found that Alitalia incurred damages worth around €250 million between February and June, although the government aid takes into account the March-June period.
“This measure will enable Italy to compensate Alitalia for the damage directly suffered due to the travel restrictions necessary to limit the spread of the coronavirus,” said Competition Commissioner Margrethe Vestager in a statement.
Full Content: EurActive
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