EU OKs aid on Poste Italiane bond distribution
Remuneration paid by Italy to Poste Italiane for postal bond distribution between 2000 and 2006 did not constitute illegal state aid because it was in line with market rates, the European Commission ruled on Wednesday. .
The Commission started looking into Poste Italiane’s activities in postal bond distribution in 2006, following a complaint.
Poste Italiane is remunerated for distributing postal savings books and postal bonds on behalf of Cassa Depositi e Prestiti, whose mission is to foster the development of public investment, local utility infrastructure works and major public works of national interest.
Postal bonds are fund-raising instruments with a low risk profile, as reimbursement is state-guaranteed. The services of placement, management and redemption of postal bonds have to be free of charge for the subscribers.
The collection of postal savings through Poste Italiane on behalf of Cassa Depositi e Prestiti has been qualified as a Service of General Economic Interest since October 2004.
This means Poste Italiane is entitled to receive remuneration for the distribution of postal bonds as compensation for the provision of this public service obligation.
Since 2000, this remuneration has been based on successive Italian conventions.
Remuneration paid by Italy to Poste Italiane for postal bond distribution between 2000 and 2006 did not constitute illegal state aid because it was in line with market rates, the European Commission ruled on Wednesday.
‘I am satisfied that ‘Poste Italiane’ did not receive more than a fair price for distributing postal bonds between 2000 and 2006,’ Competition Commissioner Neely Kroes said in a statement.
The Commission started looking into Poste Italiane’s activities in postal bond distribution in 2006, following a complaint.
Poste Italiane is remunerated for distributing postal savings books and postal bonds on behalf of Cassa Depositi e Prestiti, whose mission is to foster the development of public investment, local utility infrastructure works and major public works of national interest.
Postal bonds are fund-raising instruments with a low risk profile, as reimbursement is state-guaranteed. The services of placement, management and redemption of postal bonds have to be free of charge for the subscribers.
The collection of postal savings through Poste Italiane on behalf of Cassa Depositi e Prestiti has been qualified as a Service of General Economic Interest since October 2004.
This means Poste Italiane is entitled to receive remuneration for the distribution of postal bonds as compensation for the provision of this public service obligation.
Since 2000, this remuneration has been based on successive Italian conventions.
