On Friday 16 June 2017, the European Commission concluded that Bulgarian support measures for the publicly-owned railway incumbent BDZ are in line with EU state aid rules.
Following Bulgaria’s notification in 2011 of a restructuring plan for BDZ, the Commission opened an in-depth investigation in November of that year as it felt that the initial plan included several measures that could give an economic advantage to BDZ.
During the investigation, the Commission focused on the cancellation by the Bulgarian state of certain debts incurred by BDZ amounting to BGN 224 million (around €114 million).
The Commission finally concluded on the need for and proportionality in the cancellation of this debt in order to support BDZ activities, as the only provider of rail transport passenger services in Bulgaria.
The investigation also found that the planned cancellation of these debts is in line with the Commission’s 2008 guidelines on state aid for railways because the debts were clearly determined and incurred prior to Bulgaria’s EU accession, the debts are directly linked to BDZ’s transport operations and are hindering the company’s sound financial management.
In a press release, the Commission indicated: “The measures will allow the company to address its debt level without unduly distorting competition in the Single Market”. (Original version in French by Marion Fontana)