Brussels, 23/03/2015 (Agence Europe) - On Monday 23 March, the European Commission announced that it had opened an in-depth investigation to examine whether the public financing of a test centre for high-speed trains and related equipment (the Centro de Ensayos de Alta Tecnologia Ferroviaria or CEATF) near Malaga, Spain, complies with EU state aid rules.
Under Spain's current plans, the project costs (nearly €360 million) would be fully financed by the EU Regional Development Fund (ERDF) and Spain.
At this point, the Commission has doubts that the project pursues a genuine objective of common interest. Its initial investigation revealed that demand for a railway test centre of this kind appears low and public opposition quite high, particularly on environmental grounds. The Commission also has concerns that the measure might give CEATF a selective advantage over other high-speed railway testing facilities in the EU that operate without state support. The Commission does not currently have enough information to verify whether the infrastructure of the CEATF would be effectively available to all potential users in the EU. It goes on to explain that according to current projections, the project will remain vastly loss-making and it is doubtful that its public financing will incentivise private investors to top up the financing. (Élodie Lamer)