Financial Times FT.com

Alitalia loan not state aid, says Rome

By Andrew Bounds in Brussels

Published: April 24 2008 12:14 | Last updated: April 24 2008 12:14

The emergency €300m (£240m, $476m) loan the Italian government extended to the loss-making airline Alitalia this week is on commercial terms and not state aid, Rome told the European Commission on Wednesday night, according to the Commission.

Any state aid must be vetted and approved by Brussels but a Commission spokesman told Reuters that Italy would not formally notify it of the move because it considered it a commercial arrangement and therefore within the rules.

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