04 November 2022

COMMISSION APPROVES PROLONGATION ITALIAN SUPPORT FOR RAIL FREIGHT

The European Commission has approved, under EU State aid rules, the prolongation of an Italian scheme to encourage freight transport to shift from road to rail. The measure was originally approved by the Commission in December 2016 (SA. 45482), prolonged in October 2017 (SA.48759) and November 2019 (SA.55025), and is set to expire in December 2022.

The purpose of the scheme is to promote the modal shift of freight transport from road to rail. Italy notified to the Commission its intention to prolong the scheme until the end of 2027 with a budget increase of €200 million, bringing the overall budget to €500 million. The Commission assessed the prolongation under EU State aid rules, and concluded that the scheme continues to be necessary and appropriate to promote the use of rail transport, in particular in Southern Italy where the imbalance between rail and road is still significantly more pronounced. Furthermore, the Commission concluded that the measure continues to be proportionate, as it is limited to the minimum necessary, and to have a limited impact on competition and trade between Member States. On this basis, the Commission found that the prolongation of the scheme is in line EU State aid rules. The non-confidential version of the decision will be made available under case number SA.103155 in the State aid register on the Commission's competition website once confidentiality issues have been resolved.

Source: European Commission