Brussels, 03/03/2005 (Agence Europe) - The European Commission on Wednesday authorised financial aid for restructuring the freight section of the French national railway company Société nationale des chemins de fer français (SNCF). The capital injection, which comes as part of an overall restructuring plan, will entail 1.5 billion euros - 800 million from the French state and 700 million from SNCF - to modernise rolling stock and overhaul the financial structure of SNCF's freight section. In the Commission's view, the plan is in accordance with the 1999 Community guidelines on state aid for rescue and restructuring of companies in difficulty, because the aid given will allow the SNCF freight section to become viable again and because it is limited to is restructuring needs, said a communication.
As the Commission demanded; the approval of this aid will be on condition of respecting several conditions, including a reduction in the volume of SNCF's freight traffic and an earlier date for opening up the French rail freight market on 31 March instead of 1 January 2007 as laid down in the second railway package. These measures will “ensure that the aid does not constitute a barrier to the development of other operators”, said the Commission. The aid will also be granted in three instalments: 500 million immediately, 400 million once the French freight transport market has been opened up. The final instalment of 100 million will be given in 2007, if needed. Finally, the freight section of SNCF will not be eligible for further restructuring aid for ten years.
The Commission also indicated that it will soon propose a framework on state aid in the rail freight sector in light of the decision taken on Wednesday and in particular with a view to opening up the EU rail freight market.
This decision goes against Community rail transport policies, says Gilles Savary
In a communication; the French socialist MEP Gilles Savary denounced the Commission's decision. The French government's plan “may be a good business plan for SNCF but it is a bad transport policy plan” because it aims to “move back to SNCF rail traffic on the most profitable routes and slots and on full trains, without guaranteeing the maintenance of the most expensive routes or single wagons”, he said. The plan, which entails abandoning 10% of the SNCF's freight traffic, “is in complete contradiction to all the political objectives announced in the last few years both by the European Commission and the French government concerning relaunching rail freight”, Mr Savary protested. In order to put in place a “pro-active transport policy”, the MEP is appealing for: - a definition of public service obligations in rail freight in order to oblige operators to finance isolated services and deficit traffic; - the creation of a “homeopathic” tax on the road freight sector, which will be implied the financing of investment in sustainable mobility.