Belgium, (Brussels Morning Newspaper) The European Commission approved Italy’s aid scheme for rail freight transport companies for damage caused in 2020.
The EC pointed out in a statement on Monday that the companies suffered damage between 12 March and 31 May 2020 due to restrictions imposed with the aim of curbing the spread of coronavirus.
Margrethe Vestager, European Commissioner for Competition, stressed that the measure worth 374 million euro will compensate rail freight companies.
“We continue working closely with all member states to ensure that national measures to support all sectors that were hit by the crisis, including the rail sector, can be implemented as quickly as possible, in line with EU rules,” she added.
Since the coronavirus pandemic broke out, many countries imposed restrictions aimed at controlling the pandemic, including bans on trade, production and free movement, among other.
The Commission noted that these restrictions affected rail freight transport directly and indirectly, by limiting trade and production of goods usually transported by rail.
The body observed that, as a consequence of restrictions, revenues of many companies dropped, while their expenditure grew due to new hygiene and sanitary mandates.
Italy to provide grants
It stressed that beneficiaries will receive grants under the approved scheme to compensate them for the damage caused by restrictions in 2020 and added that all companies in the logistics chain are eligible.
The EC pointed out that it assessed Italy’s proposal under Article 107 of the Treaty on the Functioning of the European Union (TFEU), which allows EU member states to provide aid to companies or sectors as compensation for “damage caused by exceptional occurrences.”
Restrictions imposed in the coronavirus crisis qualify as such an occurrence, the Commission noted, stressing that the coronavirus pandemic was unforeseeable and extraordinary, and had significant economic impact.
It added that the Italian proposal is proportionate and does not go beyond compensation, noting that the proposed scheme is in line with EU rules.
The body pointed out that EU member states do not need EC approval for national aid schemes available to all companies or citizens, stressing that such aid can be provided immediately.
The CE adopted the State Aid Temporary Framework in March 2020 to expand state aid rules with the aim of allowing EU member states to support their economies better in the coronavirus crisis.