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EU Commission Opens In-Depth Investigation Into French Fret SNCF State Aid

By  |  January 18, 2023

The European Commission has opened an in-depth investigation to assess whether certain French support measures in favour of Fret SNCF are in line with EU State aid rules.

The beneficiary of the measures is Fret SNCF SAS, a wholly owned subsidiary of the French railway operator SNCF SA (‘SNCF’). Fret SNCF has been constantly loss-making, except in 2021.

In the period from 2007 to 2019, its losses were continuously covered by its parent company SNCF through intra-group cash advances, which constitute State resources because of shareholding and control by the State.

Read more: SNCF Wants Its 2014 Commitments Revisited By French Regulator

At this stage, based on its preliminary examination, the Commission has concerns that certain measures in favour of Fret SNCF, which were taken during the period 2007-2019, are not in line with EU State aid rules.

Therefore, the Commission has opened an in-depth investigation into the existence of State aid and, if proven, its compatibility with the abovementioned State aid rules.