Brussels, 31/10/2001 (Agence Europe) - The European Commission has authorised subsidies granted to the "Société Nationale Maritime Corse-Méditerranée" to compensate for the cost of public transport ferry services between Corsica and mainland France. The Commission study concluded that the subsidies of some 6 billion French francs (EUR 914 million) granted between 1990 and December 2001 to SNCM by the French state did not exceed the cost of the public service provided by the company. "After receiving complaints from private operators, the Commission's examination confirmed that the services operated by SNCM are indeed services of general economic interest. Down the years market forces have not satisfied the regularity and frequency of service demanded by the public authorities", commented the Commission in a press release.
"As the public service agreement between France and the SNCM expires on 31 December 2001, the French authorities must notify the Commission of any new aid measures planned after that date", it added. When it launched its investigation in March 2001 into the subsidies for SNCM, the Commission hinted that it was planning to give its opinion before the end of the new bidding process (for public services from 1 January 2002 onwards) in order to avoid leaving a legal vacuum (see EUROPE of 7 March).
The investigation originally only covered SNCM's ferry transport between Corsica and Italy (by its subsidiary "Corsica Marittima"), where the Commission "found no irregular practices". It stressed in its press release that the volumes transported by Corsica Marittima were insignificant in 1990-99. Turnover for that period amounted to FRF 7.75 million, while its market share did not exceed 6.5%. The Commission launched its first investigation in 1998, fearing that SNCM had used state aid to fund Corsica Marittima's accumulated debts of around FRF 40 million.