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EU warns Italy on renationalising Alitalia

30 April 2008, 13:46 CET

(BRUSSELS) - The European Commission will refuse all new state aid for Alitalia, a senior official at the EU executive said Wednesday after Rome raised the prospect of re-nationalising the ailing airline.

"Alitalia cannot receive state aid until 2011, no matter in what form," said Benoit Le Bret, head of the office of EU Transport Commissioner Jaques Barrot, in response to a question about Alitalia's possible renationalisation.

"Whether by one means or another, one instrument or another, if there is the intention of giving state aid, it risks being declared illegal," he added.

Under EU rules, Italy is currently banned from offering outright state aid to the airline until 2011 because of past bailouts.

Prime minister-elect Silvio Berlusconi floated the idea on Tuesday of nationalising Alitalia instead of selling off the state's 49.9 percent share in the loss-making airline, according to media reports.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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