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Commission doubts Simet’s right to public service compensation for past bus services

By  |  May 31, 2012
Commission doubts Simet’s right to public service compensation for past bus services

The European Commission has opened an in-depth investigation into public service compensation for Simet bus services between 1987 and 2003. The Commission “has doubts that a public service compensation is necessary to retroactively finance services that were provided years ago and for which it is not clear that there was a genuine public service obligation.” The compensation should comply with the EU regulation on passenger transport by rail and road (Council Regulation (EEC) 1370/2007).

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    After facing refusal from the government, Simet brought its case to court. The Italian Supreme Court for administrative matters (Consiglio di Stato) ruled in favor of Simet in March 2010 and decided that Simet was entitled to compensation for the time period at issue.

    Full content: EC Press Release

     

    Related content: Some Reflections on the European Commission’s State Aid Policy (Philip Lowe, European Commission)

     

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