Italian central bank’s arguments endorsed by EU General Court in State aid litigation
Clients Banca d'Italia
Jones Day advised Banca d’Italia, the central bank of Italy, with respect to important State aid litigation before the EU General Court.
In its decision, the EU General Court fully endorsed the Bank of Italy’s arguments, annulling a European Commission decision that prohibited Fondo Interbancario's support intervention to the financially-distressed Banca Tercas on the grounds that it breached EU State aid rules. Fondo Interbancario is an Italian Mandatory Deposit Gurantee Scheme, or "DGS." The General Court said that the Commission had misunderstood the Bank of Italy's powers of banking and financial supervision as well as its role in Fondo’s decision to intervene in favor of Banca Tercas.