Brussels, Belgium – The European Commission decided on 21 december 2005 to close the formal investigation procedure[1] regarding the investment aid for railway wagons and new or reconditioned rolling stock[2] in the Autonomous Province of Trento, Italy. After examination, the Commission has concluded that the aid measure is compatible with the common market[3].

The Italian measure established an aid for small and medium enterprises of up to 25% for the acquisition of railway wagons and new or reconditioned rolling stock[4]. The Commission’s decision of 24 July 2002 to launch a formal investigation procedure was the outcome of several doubts regarding the compatibility of the measure with EU rules on state aid[5], which establish a maximum level of aid lower than the one included in the Italian plan.

However, following the opening of the investigation procedure, the Italian authorities agreed to reduce the planned aid intensity to the maximum levels established by EU rules. Therefore the Commission can state the compatibility of the Italian aid measure with the Treaty.

[1] laid down in Article 88(2) of the EC Treaty

[2] JOCE C/242/02

[3] Under Article 87 (3) c of the EC Treaty

[4] Art.3.2.e of the Provincial Law No 6 of 13 December 1999, Special provisions for the transport sector

[5] Articles 4 (2) and (5) of the Commission Regulation (EC) No 70/2001 of 12.1.2001 on the application of Articles 87 and 88 of the EC Treaty to small and medium-sized enterprises, OJ L 10, 13.1.2001, p.33