European Commission denounces two “illegal” loans to Alitalia

The European Commission sanctions Alitalia for two loans that the Italian company received in 2017. Brussels considers that this state aid is illegal under European competition rules.

In 2017, the Italian company Alitalia was granted two loans for a total amount of 900 million euros. The company was sinking.

Except that these two loans are illegal, under the rules of the European Union.

This is what the Commission has just said, which considers that this state aid has constituted an undue advantage over competition.

“Unfair advantage”

In her press release, Competition Commissioner Margrethe Vestager underlined that “these loans granted to Alitalia constitute State aid, and that they violate the rules in this area“.

“These two loans gave Alitalia an unfair advantage over its competitors. Consequently, the amount of these loans must now be recovered by Italy from Alitalia. “

Except that Alitalia is in cessation of activities, and may have great difficulty in repaying.

Will this debt fall on the shoulders of the new Italian company, called ITA, which is supposed to replace Alitalia?

No, Brussels felt that ITA was a new entity, that it was not the “economic successor“and that it was therefore not liable for the reimbursement.

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