Follow up to Written Question E-002974-17 and the Commission's reply of June 2017 - repeated restructuring aid for Alitalia and compatibility with State aid rules

Subject: Follow up to Written Question E-002974-17 and the Commission's reply of June 2017 - repeated restructuring aid for Alitalia and compatibility with State aid rules

The Commission has opened an in-depth investigation to assess whether Italy’s bridge loan to Alitalia, totalling EUR 900 million, constitutes State aid1. Since the loan was extended from May 2017 until at least December 2018, it has now exceeded the maximum permitted duration of six months for a rescue loan under the Rescue and Restructuring Aid Guidelines.

The high cost base of Alitalia and general competitiveness issues have been well known for some time. In June 2017, Commissioner Vestager stated: ‘companies in difficulty may receive rescue and restructuring aid once, over a 10-year period, if they comply with the relevant strict conditions’2.

In the case of Alitalia, the Commission should explain and make public the nature of these strict conditions and whether the loan was under ‘market terms’ back in June 2017.

1. Why has the Commission changed its stance on the loan since June 2017, and what facts have since emerged to trigger this change?

2. What is the timeframe for recovering the EUR 900 million, particularly if Alitalia will at last be sold to competitors in the next few months?

3. What is the benefit for the EU of keeping a loss-making and persistently non-restructuring company afloat when profitable competitors can serve Italian and EU citizens better and at competitive prices?

1 http://europa.eu/rapid/press-release_IP-18-3501_en.htm

2 Answer to Written Question E-002974-17,

http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2017-002974&language=EN

Answer given by Ms Vestager on behalf of the Commission

(28 June 2018)

The Commission's position has not changed since June 2017. The Commission started its preliminary investigation once it became aware of the loan in order to gather and assess the information necessary to ascertain whether any state aid could have been involved. As stated in its reply to Written Question E-002237/2018, the Commission opened a formal investigation on 23 April 2018.

The Commission must first assess whether the loan does indeed constitute aid and, if so, whether it is compatible under the relevant state aid rules, in particular the Rescue and Restructuring Guidelines. Then, if the Commission finds that there is incompatible aid that needs to be recovered, it would fix in its decision a deadline by which any such incompatible aid would have to be recovered. However, the fact that the Commissioned opened the formal investigation does not prejudge in any way its outcome.

⋅1∙ http://europa.eu/rapid/press-release_IP-18-3501_en.htm

⋅2∙ Answer to Written Question E-002974-17, http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2017-002974&language=EN