Commission authorises regional aid for Fiat engine plant at Termoli, Italy.

Following a very thorough investigation, the Commission has decided to authorise regional aid totalling EUR 27.9 million (ITL 54 billion) for Fiat Auto under Regional Law 488/92. The Commission has concluded that the proposed aid for an investment project at Termoli is in line with the rules laid down in the Community framework for state aid to the motor vehicle industry.

At the end of 1997, Italy notified six grants of state aid to Fiat Auto, one of which was for the Termoli engine plant (workforce of 3 300), at which 230 000 new 16 V 1 242 cm Fire (Fully Integrated Robotised Engine) engines are to be produced annually. Early in 1999, having found that the information provided by Italy was still insufficient to allow the whole of the investment project to be analysed in the light of the rules governing state aid to the motor vehicle industry, the Commission decided to carry out a detailed investigation.

The investigation has now shown that the proposed regional aid, whose intensity is about 15%, complies with the rules laid down in the Community framework.

Some 500 jobs will be safeguarded as Cassino as a result of the aid.