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In a press release issued today, the European Commission announced the approval of €1.9 billion in State aid for DB Cargo, one of Europe’s largest rail freight operators. The approval is conditional on the implementation of a comprehensive restructuring plan. DB Cargo, a subsidiary of the state-owned Deutsche Bahn AG, is instrumental in promoting rail freight as a lower-emission alternative to road transport, in line with the EU’s sustainability objectives.

The approval follows an in-depth investigation into the compatibility of the aid with EU State aid rules. The Commission concluded that the support, provided through a profit and loss transfer agreement between Deutsche Bahn AG and DB Cargo, constitutes State aid. To address this, the agreement will be discontinued as of January 2025.

The aid was assessed under EU guidelines on rescue and restructuring aid, with the Commission finding it compatible with the internal market. This decision reflects the importance of the restructuring plan designed to ensure DB Cargo's long-term viability by the end of 2026. The plan involves measures to streamline the company’s activities, reduce costs, and address competition concerns through divestitures of certain assets and activities. The Commission also took into account that rail freight is indispensable as a lower-emissions alternative to road transport to bring about sustainable logistics circuits.