Press Release: State aid: Commission partly approves regional aid for De Tomaso Cutro in Italy

The European Commission on 20 January 2005 partially approved under EC Treaty state aid rules investment aid to De Tomaso Cutro for its envisaged greenfield car production plant in Cutro (Calabria, Italy). After an in-depth investigation, the Commission concluded that part of the aid proposed by Italy was necessary for the investment to be carried out and was compatible with EC Treaty rules requiring Member States not to granting aids or subsidies liable to distort competition within the Single Market (Article 87), but that part of the proposed aid was not compatible with state aid rules.