The European Commission (EC) approved a rescue loan for 61 million euros from the Belgian government to rail freight operator Lineas. “Belgium has committed to presenting a restructuring plan if the rescue loan is not reimbursed”, the Commission said.
The Belgian government notified the EC about the rescue loan last July “to address Lineas Group’s short-term liquidity needs for six months”. The company has in fact been struggling financially over the past few years due to a drop in demand for rail freight services, especially in key industries such as steel and automotive.
Previous schemes cleared as well
In addition to approving the 61 million euros scheme, the Commission also analysed two previous financial injections provided to Lineas. The first one saw 46 million euros coming from Belgian regions and banks in 2024. The second one entailed 20 million euros coming from the company’s main shareholders (the Belgian government and French investment fund Argos Wityu) in 2023. “The Commission concluded that neither injection qualified as State aid”, a note from the EC said.