Brussels, 28/11/2008 (Agence Europe) - On 26 November, the European Commission approved state aid from the Czech state to bus companies in Southern Moravia. The Commission concluded that certain measures granted to these companies constituted state aid but were, nonetheless compatible with the common market.
Between 2003 and 2005, the Czech authorities were granting, on the basis of contracts, compensations to bus carriers in Southern Moravia for providing public transport services. The Commission has assessed that the contracts were not concluded with operators selected in open public tender. Therefore, it cannot be excluded that remunerations for transport operators foreseen in the contracts entail state aid in the meaning of Art. 87(1) of the Treaty. However, since the payments only covered losses, the Commission concluded that there was no overcompensation and the measures comply with Art. 73 of the Treaty. (O.L.transl/rh)