The Minister of Business and Made in Italy Adolfo Urso was clear: “Increasing production in Italy is the objective of this government”. And so far so good. Then, as regards car scrapping, the minister underlined: “In January the government will present a one billion euro incentive plan for car scrapping and replacement with eco-friendly cars, but they will be modulated incentives for vehicles produced in Italy because we want to reverse the trend and ensure that they serve to increase national production”.
And here the mystery begins: incentives only for cars produced in an EU country are expressly prohibited by articles 107 and 108 of the state aid regulations in the “Treaty on the Functioning of the European Union”. They can't be done in any way. The law is very clear: “Aid granted by States, or through state resources, in any form which, by favoring certain undertakings or certain production, distorts or threatens to distort competition”.
Of course, there are some exceptions, mostly aid of a social nature granted to individual consumers, but here too “on the condition that they are granted without discrimination determined by the origin of the products”.
What the minister has in mind to circumvent EU regulations remains a mystery. But if he said it like this, officially, he will have something in mind (hopefully). In any case, the doubt also remains on how to consider a machine “made in Italy”, on how many components must be produced by us or how many can arrive from abroad. The case concerns the DR, the Evo, the Sportequipe and the Ickx which have various components made in China. And then there is the problem that in Italy we actually no longer produce anything: if we imagine incentives only for electric cars, the aid could only go to the Abarth 500e or the electric Fiat 500 (both created in Mirafiori, Turin). So all this billion for just two cars: they could be given away to anyone who wants them.
If instead – here too we don't know how – the incentives could be extended only to cars produced in Italy (excluding Ferrari, Maserati, Lamborghini and Pagani), a miserable choice would remain: Panda (Pomigliano d'Arco), Alfa Romeo Giulia and Stelvio (born in Cassino) and Tonale (Pomigliano d'Arco). Or Fiat 500X, Jeep Compass and Renegade, all made in Melfi. That is, we are talking about a billion in incentives to be “spread” over two electric or seven thermal models. All from a single car manufacturer anyway.
Urso explained in any case that “Whoever brings production lines back to Italy will have a tax reduced by 50% and the opposite will be done for those who relocate”. “In the event of a transfer for consideration or relocation abroad of assets for which benefits have been received – stated the minister – the deadline within which the State can recover all the incentives provided is extended from the current 5 to 10 years ”.
And even this last strategy appears to be completely prohibited by EU policy. With immediate possible repercussions for Italy: “If the Commission – states article 108 of the State aid regulations in the Treaty on the functioning of the European Union – after having ordered the interested parties to present their observations, finds that an aid granted by a State, or through State funds, is not compatible with the internal market pursuant to Article 107, or that such aid is implemented in an abusive manner, decides that the State concerned must abolish or modify it within the period set by it”.
And it is obvious that, if Italy were to launch such protectionist incentives, another country could immediately appeal against this decision and block everything: “If the State in question does not comply with this decision within the established deadline – explains the EU – the Commission or any other interested State may refer the matter directly to the Court of Justice of the European Union, in derogation of Articles 258 and 259”. Amen.
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