Italy will continue to provide state aid for the shift from road to rail until 2027. In addition, it is spending an additional 200 million euros, on top of the 300 million euros already allocated for this purpose. The European Commission has just approved the extension of state aid for the industry under the EU State aid rules.

Italy had requested the European Commission (EC) to prolong the scheme, which has been in place since 2016, until the end of 2027, with a budget increase of a total 500 million euros.

“The Commission concluded that the scheme continues to be necessary and appropriate to promote the use of rail transport, in particular in Southern Italy where the imbalance between rail and road is still significantly more pronounced,” said the EC in a note. The Commission pointed out that the measure will have a limited impact on competition and trade between Member States as it is limited to the minimum necessary.

It’s already the third extension

The measure was approved by the EC in December 2016 and has already been prolonged twice, in October 2017 and November 2019. It was set to expire in December 2022, but Italy requested an extension. The Commission decided on Monday 31 October. “The purpose of the scheme is to promote the modal shift of freight transport from road to rail, which is a greener mode of transport, and contribute to the reduction of CO2 emissions and road congestion,” the Commission pointed out.

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