13 August 2021

EC APPROVES €271 MILLION TO PROMOTE RAIL FREIGHT IN SWEDEN

On 23 July, the European Commission approved, under EU State aid rules, an amendment with a new total budget of SEK 2.75 billion  (approximately €271 million) of a Swedish aid scheme, originally approved by the Commission on 12 May 2020 (SA.57886), to increase the support for rail freight transport in Sweden.

This scheme will run until 31 December 2025 and will be open to railway companies active in the rail freight transport sector. The support will take the form of direct grants. Due to the budget increase, individual grants of aid will also increase. The aid aims at partially covering costs related to external costs incurred by the beneficiaries, such as accidents, pollution, congestion and climate change.

The Commission assessed the amendment under EU State aid rules and found that the budget amendment is necessary and proportionate to promote the use of rail transport, will be beneficial both for the environment and for mobility, and will facilitate the modal shift from road to rail, whilst not leading to undue competition distortions.  More information will be available on the Commission's Competition website, in the public case register under case number SA.62800 once any confidentiality issues have been resolved. 

Source: European Commission