Press Release: State aid: Commission outlaws Italian tax breaks for companies listed for the first time on EU stock exchanges

The European Commission decided on 16 March 2005 that an Italian scheme reducing the nominal and effective corporate tax rates of companies listed for the first time on a regulated EU stock exchange in 2004 violated EU Treaty state aid rules (Article 87). The decision followed an in-depth investigation opened in February 2004. The scheme was found to distort competition because it was limited to a small number of undertakings able to list within the narrow timeframe provided for by the law (i.e. 2004) and constituted operating aid in favour of some of Italy's high-growth companies. The aid had been enacted without prior Commission approval and must be reimbursed by its beneficiaries. The Italian authorities earmarked €56 million in 2004 alone in terms of foregone tax revenue.