On Tuesday 10 July, the European Commission ordered Spain to recover €167 million from the postal operator Correos, due to overcompensation awarded in return for the execution of the universal postal service obligation between 2004 and 2010 and tax exemptions incompatible with EU state aid rules.
The Spanish authorities gave Correos a universal postal service obligation that consisted of the provision of basic postal services across the national territory, under certain conditions.
Under EU state aid rules applicable to public service compensations, member states may provide financial support to businesses to compensate them, under certain conditions, for the additional costs connected to the provision of a public service. However, in order to tackle possible competition distortions, the companies may not be overcompensated for carrying out this public service.
It is within this framework of the Commission opened an in-depth investigation in February 2016, amid concerns that Madrid had overcompensated Correos (see EUROPE 11488).
Following its investigation, the institution considered that the company had been overcompensated to the tune of around €166 million in the framework of this universal postal service provision between 2004 and 2010 and that some of the tax exemptions gave it an undue advantage, estimated at around €0.9 million since 2004.
For these reasons, the Commission has ordered Madrid to recover the money. (Original version in French by Lucas Tripoteau)