EU Commission to Scrutinize State Loan for Italy's Ailing Alitalia
Brussels (dpa) - The European Commission has opened an investigation into the latest 400-million-euro (440-million-dollar) government loan granted to Italy's ailing Alitalia airline two months ago, to assess whether it could distort EU competition.
Alitalia has been under government-controlled administration since May 2017 and has survived thanks to Italian state loans totalling 1.3 billion euros.
The EU executive acts as the European Union's competition watchdog and has the power to intervene in cases where it feels consumers' interests have been damaged or a company has an unfair advantage.
Opening a so-called in-depth investigation is a "standard step," the commission stressed on Friday, in clarifying that the new loan complies with the bloc's strict rules on state aid.
The EU executive is also scrutinizing previous bridge loans totalling 900 million euros. This investigation, opened in 2018, is separate and ongoing.
The airline last turned a profit in 2002.
———
©2020 Deutsche Presse-Agentur GmbH (Hamburg, Germany)
Visit Deutsche Presse-Agentur GmbH (Hamburg, Germany) at www.dpa.de/English.82.0.html
Distributed by Tribune Content Agency, LLC.