€88 MILLION SUPPORT TO COMPENSATE FOR DAMAGES SUFFERED BY DB CARGO DUE TO COVID-19
On 22 December 2021, the European Commission found a €88 million German support measure in favour of Deutsche Bahn AG to be in line with EU State aid rules. The measure, which will take the form of an equity injection, aims at compensating Deutsche Bahn for the damages suffered by its subsidiary DB Cargo due to the coronavirus outbreak between 16 March and 17 May 2020.
In particular, the combination of total or partial standstills in production, the suspension of retail activities and travel restrictions entailed that the main clients of DB Cargo, active notably in the automotive, steel, chemicals/mineral oil and combined transport segments, were prevented in full or in part from exercising their economic activities in several geographic areas. Given the heavy reliance of DB Cargo's business on such clients, this resulted into a decline of its activities and revenues.
The Commission assessed the measure under Article 107(2)(b) TFEU, which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors (in the form of schemes) for damage directly caused by exceptional occurrences. On this basis, the Commission concluded that the measure is in line with EU State aid rules.
Source: European Commission