State aid: Romania needs to recover €570 million of incompatible aid from the rail freight operator CFR Marfa

The European Commission has found that rail freight operator CFR Marfa received at least €570 million incompatible State aid from Romania through a debt write-off and failure to collect debts from the company. Romania must now recover the illegal aid, plus interest, from CFR Marfa.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The rail freight market is an essential component of any economy’s transport links. Certain public support measures in favour of the state-owned incumbent CFR Marfa have given them an unfair economic advantage vis-à-vis other operators. They consist of the cancellation of public debts and the failure of public creditors to collect debts from the company. This is in breach of EU State aid rules. Romania will now have to recover the incompatible aid.”

CFR Marfa is the incumbent rail freight transport services provider in Romania. The company, which is fully state-owned, has been in economic difficulties for a number of years. It has a high level of debt, mainly towards the Romanian rail infrastructure manager CFR Infrastructura, which is also fully state-owned, and had high debts towards the national social security and tax administration agencies for several years.

Full Content: European Commission

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