On 7 May, the European Commission approved, under EU State aid rules, the re-introduction of Italy’s “International Registry” scheme.
The scheme, as re-introduced, aims at encouraging shipping companies to register their ships in Europe, which ensures adherence to higher social, environmental and safety standards. The Commission approved the original scheme in 1998, and again in 2004. On 11 June 2020, the Commission approved a prolongation of the scheme until the end of 2023.
Italy notified to the Commission the re-introduction of the scheme until the end of 2033. Under the scheme, eligible shipping companies that register their vessels in the International Registry are granted a corporate tax reduction and other benefits, such as an exemption from payment of social security and welfare contributions for seafarers, a reduction on the tax on vessel insurance contracts or a reduction on the tax on the registration of labour contracts for seafarers. The scheme has an overall budget of €5.4 billion and will be in force until 31 December 2033.
The Commission assessed the re-introduced scheme under EU State aid rules, in particular its Guidelines on State aid to maritime transport. The Commission found that the scheme is necessary and appropriate to achieve the objectives pursued, namely boosting the competitiveness of ship owners and operators, supporting the development of the maritime sector, and encouraging the registration of vessels in EU/EEA ship registers.
In addition, the Commission found that the scheme is proportionate as it is limited to the minimum necessary and has a limited impact on competition and trade between Member States. On this basis, the Commission approved the re-introduction of the Italian scheme under EU State aid rules.
