The European Court of
Justice has slapped Italy with a 30-million-euro fine for
failing to recover tax relief to companies in the Veneto region
between 1995 and 1997, a move the court considers a form of
illegal state aid.
The total reductions, which came in the form of relief from
social security contributions, amounted to about 114 million
euros and concerned 1,645 companies in Venice and Chioggia.
Court judges have ordered Italy to pay 30 million euros
immediately and an additional 12 million euros every six-month
period as long as it fails to recover the entire sum.
The reductions were awarded to companies based on their
"unusual location", and were not limited to a specific sector.
In November 1999, the EU Commission ordered Italy to
recover the aid.
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