Press Release: State aid: Commission agrees with Italy amount of subsidies Agusta Westland needs to reimburse for projects that have civilian uses

The European Commission has formally endorsed negotiations with Italy concerning the amount of subsidies that Agusta Westland must reimburse the Italian government for two military projects that also found civilian applications. The company received state support for two military projects - the helicopter A139 and the tilt-rotor BA609 - which also benefited civil versions. The EU Treaty says Member States may take measures for the protection of their essential interests, including defence. But the measures cannot distort the conditions of competition in the EU's internal market for products which are not intended solely for military use. As the Commission established in 2009 that the support had also benefitted civilian helicopters, a solution had to be found to compensate the distortions of competition. Following discussions between Italy and the Commission, Agusta Westland will reimburse €25 million for the project A139, a civilian version of which is already in the market. It will also pay the Italian State a progressive annual amount per each civilian version of the tilt-rotor BA 609 (still being developed), for a maximum of 20 years up to the total aid received.