FCA

FCA Italy banned from using in Brazil relief of € 6,3 bi 

The Board of Directors of Intesa Sanpaolo, Italy's largest bank, approved yesterday (26/05) loan of € 6,3 billion to Fiat Chrysler Automobiles (FCA). But the operation, housed in the government's "liquidity decree", depends on the confirmation of Italy's public guarantees. A week ago, a trade union movement and from within the Italian government demanded that the money be fully applied to the plants of FCA Italy.
The agency ANSA summed up the Italian sentiment: "according to the Minister of Economy (and Finance), Roberto Gualtieri, the loan has “additional and stringent conditions” on investments, employment and maintenance of production in Italy”. According to the agency, Gualtieri was even more emphatic: "We told Fiat that with the loan you have to pay for investments in Italy. [ ... ] We said No To Relocation. The state guarantee is linked to these conditions”" The Italian newspapers are unanimous in the following: Sanpaolo's money will have to be fully applied to FCA activities in Italy: pay salaries and strategic suppliers to their factories in the country and ensure investments, mainly in projects for the development of electric vehicles.
The approval of Intensa Sanpaolo was disclosed with emphasis on the conditions of the Government of Italy for the assignment of guarantees. The official endorsement of the investment agency Sace (Italian government agency for export credit) will cover at least 80% of the transaction value.
The next steps are approval by the investment agency Sace, decree of the Ministry of Economy and Finance (MEF), publication in the Official Gazette and approval by the Court of Auditors of the country. These are steps required by the liquidity Decree, released in the country on April 8, within the emergency measures to contain the pandemic of the new coronavirus (Covid-19).

FCA owes to the Health Fund
But not everything is flowers in this solution via Sanpaolo. The newspaper "Il Manifesto", brought a fiscal imbroglio involving the FCA Italy: fiscal problem. The newspaper considered “a classic hypocrisy of the world made in Italy", the Government of Italy rescue the company that ten years ago. The publication states that since 2011, the FCA does not collect the regional tax on productive activity (IRAP).
However, the debt of FCA Italy, which comes from the Fiat Group times, would have been confirmed by the Revenue Agency. "Il Manifesto" points out that "90% of the revenue obtained with this tax is allocated to the regions with the aim of financing the National Health Fund"” The tax arose in the 1990s in support of Public Health.

Milan Stock Exchange reacted well
The main index of the Milan Stock Exchange, the FTSE MIB, closed the trading session this Wednesday (27/05) with a high of 0.11%, thus signaling support for aid to FCA. The main increase was for the role of the FCA, of 2.81%, quoted at € 8.16. The daily report of the exchange highlights that, of all traded assets, 51.75% (223) closed higher.

Nairo Almieri-Brazil