The European Commission has decided to launch an in-depth investigation into whether Italy's 900 million euro bridge loan to crisis-stricken Alitalia constitutes unlawful state aid.
The Commission announced this on Monday in a press release.
Alitalia was placed under extraordinary administration under Italian bankruptcy law in May 2017. The Italian state granted bridge loans of first €600 million in May and then a further €300 million in October.
At the same time, a buyer was sought for the company's assets.
The Commission objects to the duration of the bridge loan, from May 2017 to at least December 2018. Normally, the limit for rescue loans is six months.
Furthermore, the Commission has doubts whether the State aid is limited to the bare minimum.
Source: Direct News Agency
