In accordance with the European State aid rules as well as the temporary framework to support the economy and to ensure businesses sufficient liquidity to preserve the continuity of their economic activity during the coronavirus outbreak, on 10 March 2021 the Commission approved the €511 million supplied by the Italian government in favour of the commercial, long-distance rail passenger services’ providers.

Due to the limitations introduced by the Italian government such as, amongst others, the general prohibition to travel across regions and the mandatory staggered seating reservation system, long-distance rail passenger transport providers saw their revenues drastically reduced while still, however, having to face the expenditures needed to enhance the needed in-vehicles sanitary and hygiene measures. Part of a wider measure, therefore, the aid aims at compensating those operators, in the form of a direct grants, for the damages suffered due to the pandemic and the related enforcement measures between 8 March and 30 June 2020.

According to the Commission, the measure is in line with the European State aid rules inasmuch as, being an extraordinary, unforeseeable event having significant economic impact, the coronavirus outbreak qualifies as such an exceptional occurrence under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU).  Such a measure, furthermore, is proportionate given that the Italian government will ensure that no individual beneficiary receives more in compensation than what it suffered in damages.

Marco Stillo