On Wednesday 28 February, the General Court of the European Union handed down a judgment dismissing the actions brought by Denmark (Case T390-20) and Scandlines Danmark and Scandlines Deutschland (Cases T-364/20 and T-7/19) concerning the financing of the Fehmarn Strait Fixed Link project between Denmark and Germany.
In 2015, the European Commission validated the financing model notified by Denmark for the construction and operation by the Danish State-owned company Femern of the 19 km immersed tunnel under the Baltic Sea between the town of Rødby in Denmark and Puttgarden in Germany, containing an electrified railway line and a motorway. The Commission found that the measures granted to Femern were compatible with the internal market.
In 2018, the General Court of the EU annulled this decision, ruling that the Commission had not initiated a formal investigation procedure. A procedure was then opened, and in 2020 the Commission finally adopted a decision whereby the measures consisting of capital injections and a combination of State loans and State guarantees in favour of Femern constituted State aid. However, in view of their modification after the decision to initiate the procedure, the Commission considered that the measures were still compatible with the internal market.
Denmark had requested the annulment of the decision classifying the measures implemented as State aid. In its judgment, the General Court of the EU dismissed the action, finding that the advantage granted to Femern had effectively strengthened its position on the transport services market, particularly in relation to ferry operators such as Scandlines Danmark and Scandlines Deutschland.
These two companies had also gone to court to seek the annulment of the decision considering the measures to be compatible with the internal market, on the grounds of potential faults committed by the Commission.
In its judgment, the General Court also dismissed this action. In its view, “the Commission could validly consider the Fixed Link project to be of common European interest, in particular because this project makes an important and concrete contribution to achieving the objectives of the Union’s transport policy and the Union’s wider objectives, and because it will improve the connection between the Nordic countries and Central Europe”.
See the judgment: https://aeur.eu/f/b1y (Original version in French by Thomas Mangin)