Alitalia secures approval from EU regulators for £66.22 million state-backed aid

In an announcement on Tuesday, Alitalia said it secured approval from EU competition regulators for state-backed financial support valued at £66.22 million. The news comes after the largest airline of Italy reported 19 of its routes to have seen significant operating losses in the four-month period that concluded in October.

In separate news, Italian Banking Association said last week that it had started testing digital euro to discover its potential benefits.

Alitalia’s losses were primarily attributed to the ongoing Coronavirus pandemic that has so far infected more than 2 million people in Italy and caused over 73 thousand deaths. According to the European Commission, the proposed aid is proportionate.

EU Commission has two ongoing investigations into Alitalia

Originally, the regulator had nodded on £180.92 million of state-backed financial support in September to the Italian carrier that is struggling to combat the impact of the COVID-19 crisis. The EU Commission said on Tuesday:

“The route-by-route quantitative analysis submitted by Italy appropriately identifies the damage attributable to the containment measures, and therefore, the compensation does not exceed what is necessary to make good the damage on those routes.”

The Rome-based company that Italy wants to renationalise, is currently facing two investigations launched by the EU Commission over £1.18 billion worth of loans that were granted to Alitalia in 2017 and 2019. As per the EU competition commissioner, Margrethe Vestager:

“Our investigations into past support measures to Alitalia are ongoing, and we are in contact with Italy on their plans and compliance with EU rules.”

Fiat Chrysler to invest £151 million in its plant in Poland

Carmaker Fiat Chrysler (NYSE: FCAU) said that it will invest £151 million in its production facility based in Tychy, Poland. The plant will primarily focus on manufacturing new hybrid and electric models of Alfa Romeo, Fiat, and Jeep.  

FCA closed less than 1% down on Tuesday. Including the price action, the stock is now trading at £13.32 per share versus a sharply lower £4.71 per share in March when the COVID-19 disruptions weighed on production. The Italian-American auto manufacturer had started the year at a per-share price of £11.17. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

FCA closed the year 2019 with an annual gain of close to 4% in the stock market. At the time of writing, it is valued at £20.65 billion.