The European Commission shows the way to how a public investment can be free of State aid (Project Carnj)

How Injection of Public Capital Can Be Free of State Aid* Injection of public capital in an undertaking conforms with the market economy investor principle when: The public investment is equal and concomitant to private investment. The public investment has economic significance and is not followed by disengagement of private investors. The recipient undertaking is in a healthy financial position. The recipient undertaking compares favourably to its peers. The investment is profitable and the expected profit compensates for the risk. Introduction This article reviews two related Commission decisions. They both deal with injection of public money in the share capital of Italian agricultural undertakings. In both cases the Commission concluded that the Italian authorities acted as