IP/08/114

Commission authorises Czech State aid to support purchase of new railway rolling stock

Brussels, Belgium – The European Commission has decided 30th January 2008 not to raise any objections to the aid scheme proposed by the Czech Republic to support its railway activities. The measure would contribute to the development of railway transport and is compatible with the proper functioning of the common market.

The Czech authorities intend to guarantee a loan of € 30 million to facilitate the purchase of new passenger rolling stock. The loan will be granted by the financing company EUROFIMA. It will contribute to the necessary upgrading of the passenger rolling stock of Czech Railways (Česke dráhy) and to the increase of the reliability and safety of rail passenger services in the Czech Republic.

Railways is paying an interest rate for the loan, though more advantageous than under full market conditions, as well as the fee for the guarantee. The Commission considers that the proposed measure contributes to the development of economic activities which are in the common interest of citizens[1] and in line with European transport policy.

[1] In the meaning of Article 87(3)(c) of the EC Treaty.