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Image header Agence Europe
Europe Daily Bulletin No. 9435
Contents Publication in full By article 26 / 35
GENERAL NEWS / (eu) eu/state aid

Commission opens investigation into funding public bus transport in Lienz district

Brussels, 30/05/2007 (Agence Europe) - On 30 May, following a complaint by the rival of the company ÖBB Postbus (Austrian transport company), the European Commission decided to open a formal state aid investigation procedure relating to payments made by the Tyrol local public transport association (Verkehsverbund Tyrol), under a public service contract, to fund public transport in the district of Lienz. Verkehsverbund Tyrol pays around €2 million per year to the company ÖBB Postbus to provide a public bus transport service in the Lienz district. A competitor of ÖBB Postbus complained to the Commission on the grounds that the payment constituted illegal state aid. The preliminary investigation carried out by the Commission reached the same conclusion, but payments made under a public service contract may be declared compatible with the common market if they do not exceed what is necessary to cover the costs actually incurred by ÖBB. The main aim of the investigation, opened on Wednesday, is to examine this point so that the Commission can reach a definitive decision on the compatibility of the aid. (aby)

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