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Europe Daily Bulletin No. 9817
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GENERAL NEWS / (eu) eu/state aid

European Commission approves state aid in transport sector

Brussels, 13/01/2009 (Agence Europe) - On Tuesday 13 January, the European Commission approved a series of state aid schemes in the transport sector.

Clearance was given to a Danish scheme aimed to ensure, with the conclusion of public service contracts with bus companies, that specific categories of people - children (i.e. families with children), students and pensioners - may benefit from discounts on these bus services. The project aims above all to ensure adequate transport services to low-income groups of the population and in general to boost public transport. The scheme will also help to create harmonised conditions for competition between railway undertakings, which already receive compensation for giving similar or higher discounts, and long-distance bus operators. Discounts practised will be partially or fully reimbursed to bus companies, as necessary.

The Commission also followed up Denmark's request to extend the scope of certain types of aid, hitherto reserved for seagoing ships registered in the Danish International Shipping Register, to include maritime cable-laying and dredging activities. The scheme exempts shipowners from having to pay income tax and social security contributions for the seafarers they employ.

Finally, the Commission has approved the introduction of a new tonnage tax scheme whereby entities which are tax liable in Slovenia and engaged in international transportation by ship or in a related activity have the possibility to change the tax base for their taxable profits. The Commission decision allows the Slovenian authorities to apply the scheme as from 1 January 2008 for a period of 10 years. (A.By./transl.jl)

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