The European Commission has approved the reintroduction of Italy’s “International Registry” scheme , which aims to encourage shipping companies to register their ships in Europe.
As explained, registering vessels in “Europe ensures “adherence to higher social, environmental and safety standards” .
The EU’s main executive body approved the original scheme in 1998 and again in 2004. In June 2020, the commission approved a prolongation of the scheme until the end of 2023.
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Italy notified the European Commission of the reintroduction of the scheme until the end of 2033.
Under the scheme, eligible shipping companies that register their vessels in the International Registry are granted a corporate tax reduction and other benefits, such as an exemption from payment of social security and welfare contributions for seafarers, a reduction on the tax on vessel insurance contracts or a reduction on the tax on the registration of labor contracts for seafarers.
The scheme has an overall budget of €5.4 billion and will be in force until December 2033.
“The Commission assessed the re-introduced scheme under EU State aid rules, in particular its Guidelines on State aid to maritime transport. The Commission found that the scheme is necessary and appropriate to achieve the objectives pursued, namely boosting the competitiveness of ship owners and operators, supporting the development of the maritime sector, and encouraging the registration of vessels in EU/EEA ship registers,” the European Commission said in a statement.
“In addition, the Commission found that the scheme is proportionate as it is limited to the minimum necessary and has a limited impact on competition and trade between Member States.”
On this basis, the EU’s executive arm said it approved the reintroduction of the Italian scheme under EU State aid rules.
European shipping represents a geopolitical asset for Europe facilitating the export and import of goods, food and energy. 76% of Europe’s external trade is enabled by shipping, as per a recent Deloitte study.
Whilst the EU represents around 15% of the global GDP, the European shipping fleet, comprising more than 22 thousand ships, is one of the largest in the world, representing around 35% of the world fleet in terms of global tonnage across all segments, a separate CE Delft study found.
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