ROME -- The Italian car market would be helped by new incentives, on condition they complied with European Union rules, Cabinet Undersecretary Antonio Catricala said on Thursday.
"The car market needs incentives that would be non selective and respect the principles of the single European market," Catricala told Reuters in an interview in answer to a question on possible new green incentives.
"We'd need to find funding cover for possible measures in that direction," he said, without giving details.
UNRAE, the organization representing foreign carmakers in Italy, forecasts a 5.6 percent decline in vehicle registrations in 2012 to 1.65 million.
It has called for "drastic measures" from the government of Prime Minister Mario Monti to support the market, including support to encourage families to buy cars with more modern and efficient engines that pollute less than older vehicles.
In 2011, Italian car sales reached 1.74 million, compared with 1.96 million in 2010.
Sources: Reuters and Automotive News Europe