Dispute over Corona state aid: Railway competitors threaten with lawsuit

The competition of Deutsche Bahn in freight transport does not want to accept the granting of billions in aid from the federal government to the state-owned company. Your European association is therefore considering a lawsuit. He speaks of an "outrageous distortion of competition".

Because of the billions in aid planned by the federal government for Deutsche Bahn, the rail competition in freight transport threatens with a lawsuit before the court of the European Union. The European Railways Network (NEE) announced that it would "not just sit back and watch this unheard-of distortion of competition through the exclusive support of DB companies".

In a letter, the merger asked the EU Commission to impose at least conditions on the federal government in return for the planned equity injection. The federally owned railway is to receive additional billions because the number of passengers had collapsed as a result of the Corona crisis since mid-March. Five billion euros are to flow into the state company's equity as Corona aid.

"The planned increase in equity would mean a serious distortion of competition for the rail freight companies represented by our association that do not belong to the DB Group," said the NEE letter to EU competition commissioner Margrethe Vestager and EU transport commissioner, dated August 18 Adina Valean. Because of the contracts within the DB Group, the cash injection from the federal government would also be used to cover deficits in the Group's own freight railways such as DB Cargo, argue the competitors.

The Federal Audit Office had also expressed concerns about the planned billions in aid for the railway. In a report to the Bundestag budget committee, the federal government must ensure that undesirable business developments of the past few years are not continued. Sustainable sources of loss, for example in freight traffic, would have to be eliminated, investments would only serve the railways in Germany. In addition, group subsidiaries would have to be sold abroad.

. (tagsToTranslate) Economy (t) Federal Audit Office (t) Federal Government (t) Deutsche Bahn (t) Corona crisis (t) Margrethe Vestager (t) EU Commission