BRUSSELS -
"The simplification of EU rules on state aid must not turn into a "free pass" for everyone, which would give a competitive advantage to member states with greater fiscal room for maneuver or with greater opportunities to underwrite debt on advantageous terms.
This would only trigger a subsidy race within the EU and lead to a fragmentation of the single market."
This is what we read in the non-paper in which Italy, in view of the European Council, summarized its position on the response to American anger.
The document was sent to the Commission and to the 26 member countries.
"A European agenda for resilience and competitiveness:
strengthening the EU industrial base, relaunching competitiveness. The Italian point of view on the EU's response to the Inflation Reduction Act and on the need for a real European industrial policy ", is the title of the Italian non-paper.
“The law on reducing inflation is in line with European objectives, encouraging the production of green technologies. However, it can translate into a competitive advantage, prompting many European companies to relocate their activities abroad. This exacerbates the problem of high energy prices, which place our companies at a competitive disadvantage compared to their American and global competitors", writes Italy in the document.
The text identifies some directives on which to focus for the revitalization of European industrial competitiveness:
"support and accelerate a green and sustainable energy transition; accompany the digital transition; promote research, innovation and the strengthening of human capital; develop the strategic".
With regard to the issue of state aid, Italy explains that "the simplification of the rules is one of the elements to be taken into consideration. Administrative simplification is necessary to speed up and facilitate the approval procedures which are currently too long and burdensome.
The changes to the "temporary framework" should also be aimed at facilitating a rapid implementation of the planned investments foreseen by the Pnrr
through a simplification of the State aid rules for already planned projects". Furthermore, "the temporary adaptation of the regulatory framework on aid applicable to the measures contained in the Pnrr should remain in force for the entire duration of the Recovery and Resilience Instrument, currently until 2026. Another possible change could consist in simplifying the state aid regime for public guarantees , allowing for an ex ante authorization in terms of target sectors, duration and remuneration of guarantees which will incorporate the cost of risk of the transactions",reads the document.
"In the short term, it is essential to ensure adequate leeway to reprioritize investments under Pnrr
and cohesion policies that can no longer be implemented due to fundamental changes in circumstances and to allow for the reallocation of already available funds, if necessary, to provide timely and targeted support in strategic areas", writes Italy.
