Italy

EU Commission investigates fiscal aid to Italian banks

Nick O’Neill, Clifford Chance, London

The EU Commission (Commission) has decided to conduct a formal investigation into Italian fiscal measures to banks and banking foundations over concerns that the measures designed to facilitate mergers in, and the restructuring of, the Italian banking sector, may constitute unlawful State Aid. The investigation is primarily concerned with certain fiscal measures, introduced by Italy in 1990, that transform savings banks into limited liability companies and ultimately privatise them. Italy has been given one month in which to comment on the Commission’s decision to investigate this topic.