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Commission clears €6 billion German scheme to compensate public transport companies for damage suffered as a result of the #Coronavirus pandemic

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The European Commission has cleared a €6 billion German scheme under EU state aid rules to compensate companies providing public passenger transport services regionally and locally in Germany for the damage suffered as a result of the coronavirus pandemic and the emergency containment measures taken by the German authorities to limit the spread of the virus.

The German regime aims to compensate each provider of regional and local public transport services for the damage suffered in the exercise of its contractual obligations in the circumstances resulting from the coronavirus pandemic and the resulting containment measures. Under this scheme, transport companies will be able to benefit from compensation in the form of direct subsidies for damage suffered between 1 March and 31 August.

Germany will ensure that no individual operator receives compensation. compensation greater than the damage suffered and that any payment exceeding the actual damage is reimbursed. The Commission has examined the measure under Article 107 (2) (b) of the Treaty on the Functioning of the European Union (TFEU), which allows the Commission to authorize state aid granted by member states to compensate certain companies or sectors for damage caused directly by extraordinary events, such as the coronavirus pandemic.

The Commission considered that the German aid scheme would allow compensation for damage directly linked to the coronavirus pandemic and that the measure was proportionate, the compensation envisaged not going beyond the amount necessary to remedy the damage. The Commission therefore concluded that the scheme complies with EU state aid rules.

Competition Executive Vice President Margrethe Vestager said: “Local and regional public transport service providers have continued to provide essential services to citizens during the coronavirus pandemic. This €6bn scheme allows Germany to compensate them for the damage they suffered as a result of the pandemic and the emergency measures taken to limit the spread of the virus. We continue to work with all member states to ensure that national supportive measures can be put in place as quickly and effectively as possible, while respecting EU rules."

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