The European Commission (EC) seems to have a positive view on the decree of the government of Italy to help the troubled carrier Alitalia avoid liquidation, a government official has said, referring to discussions on an off the record level. Lots of speculations are going around about the troubled airlines Alitalia.

The remarks by Luigi Casero, Economy Undersecretary, appeared in a parliamentary bulletin on Thursday, turned up to talk down doubts that the EC will raise objections to Italy's 300 million euro emergency loan to the ailing carrier to keep it operational.

On Wednesday, an Italian paper reported that the EC would declare the emergency loan as illegitimate state aid and turn to have it suspended, which would abandon the troubled airline with a little choice other than liquidation.

The government of Italy has permitted the struggling carrier to treat the emergency loan as capital on its account books and issued fresh rules for the sale of Alitalia, both of these are part of a new decree that came into force previously this week.

The new decree must still be passed by both of the houses of parliament and was being discussed in the lower house on Thursday. It encountered strong opposition from a party on the other side of the house, which is expected to postpone the vote until next week.

However, newly-elected Prime Minister Silvio Berlusconi's government has majorities in both houses of the parliament and the government's decree is likely to get approval.