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Image header Agence Europe
Europe Daily Bulletin No. 10481
Contents Publication in full By article 19 / 31
GENERAL NEWS / (ae) eu/state aid

SeaFrance restructuring plan rejected

Brussels, 24/10/2011 (Agence Europe) - Despite “regular and intensive” discussions with the French authorities for the last year, the European Commission concluded on Monday 24 October that the transport operator SeaFrance, which is active on the Calais-Dover line, had not made sufficient contribution to the funding of its restructuring plan. The aid planned by France is therefore incompatible with European rules on state aid. SeaFrance has suffered recurrent financial difficulties since 1996 and is currently in receivership. Despite repeated requests by the Commission, France has been unable to demonstrate that the financial contribution of the company was exempt from state aid and reflected the confidence of the markets as to its future viability.

Joaquín Almunia, Vice-President of the Commission, said that his institution would be “naturally attentive to the social consequences of this decision and will make available to France all the instruments at its disposal in this matter”.

On 18 February, France notified a restructuring plan providing for aid in the form of a capital increase of €223 million by the sole shareholder of SeaFrance, SNCF.

In this plan, SeaFrance's own contribution to the costs of the restructuring were below 5%, rather than the 50% laid down by European rules. (LC/transl.fl)

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