EC investigates state aid to Polish and French transportation companies
The European commission has decided to launch formal investigations into State aid for Polish haulier, C Hartwig Katowice, and French road and rail transportation company, Sernam.
In terms of C Hartwig Katowice, the EC investigate a restructuring loan by the State, and will also scrutinise measures taken by PKP Cargo, a State-controlled rail freight operator, in favour of C. Hartwig Katowice and the price it paid for its takeover.
The EC will address three separate issues:
* Whether the loan granted by the State to restructure C. Hartwig Katowice is in line with State aid rules on restructuring of enterprises in difficulty. In particular, whether the difficulties of C.Hartwig Katowice are too serious to be dealt with by its future mother company PKP Cargo. The Commission has not received enough information so far to judge whether C. Hartwig Katowice has sufficient own resources to finance the restructuring process. The Commission will also now investigate fully whether the Polish authorities can demonstrate that the restructuring measures will restore the long-term viability of C. Hartwig Katowice.
* Whether the measures undertaken by PKP Cargo (increase of C. Hartwig capital, replacement of a debt of C.Hartwig by shares, a guarantee for C.Hartwig's loan) involve any advantage in favour of C.Hartwig Katowice.
* Whether the takeover of C. Hartwig Katowice by PKP Cargo will be completed under normal market conditions and does not involve any undue advantage in favour of PKP Cargo.
The EC will also investigate aid granted by the French authorities to Sernam, the former road and rail transport services operator of France's national railway company (SNCF).
The investigation will focus on the implementation by France of a decision taken by the Commission in 2004 authorising aid of €503 million to Sernam but requiring the repayment of €41 million which the company had already received.
The investigation follows several complaints claiming that Sernam has not reimbursed the sum of €41 million, and allegations that Sernam was not sold in accordance with the conditions imposed by that same decision. It is claimed that, before Sernam was sold off, it had received an additional injection of capital from SNCF, a transaction that could constitute a new instance of state aid.
In terms of C Hartwig Katowice, the EC investigate a restructuring loan by the State, and will also scrutinise measures taken by PKP Cargo, a State-controlled rail freight operator, in favour of C. Hartwig Katowice and the price it paid for its takeover.
The EC will address three separate issues:
* Whether the loan granted by the State to restructure C. Hartwig Katowice is in line with State aid rules on restructuring of enterprises in difficulty. In particular, whether the difficulties of C.Hartwig Katowice are too serious to be dealt with by its future mother company PKP Cargo. The Commission has not received enough information so far to judge whether C. Hartwig Katowice has sufficient own resources to finance the restructuring process. The Commission will also now investigate fully whether the Polish authorities can demonstrate that the restructuring measures will restore the long-term viability of C. Hartwig Katowice.
* Whether the measures undertaken by PKP Cargo (increase of C. Hartwig capital, replacement of a debt of C.Hartwig by shares, a guarantee for C.Hartwig's loan) involve any advantage in favour of C.Hartwig Katowice.
* Whether the takeover of C. Hartwig Katowice by PKP Cargo will be completed under normal market conditions and does not involve any undue advantage in favour of PKP Cargo.
The EC will also investigate aid granted by the French authorities to Sernam, the former road and rail transport services operator of France's national railway company (SNCF).
The investigation will focus on the implementation by France of a decision taken by the Commission in 2004 authorising aid of €503 million to Sernam but requiring the repayment of €41 million which the company had already received.
The investigation follows several complaints claiming that Sernam has not reimbursed the sum of €41 million, and allegations that Sernam was not sold in accordance with the conditions imposed by that same decision. It is claimed that, before Sernam was sold off, it had received an additional injection of capital from SNCF, a transaction that could constitute a new instance of state aid.