{"id":112710,"date":"2024-08-22T18:07:40","date_gmt":"2024-08-22T08:07:40","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=55522"},"modified":"2024-08-22T18:07:40","modified_gmt":"2024-08-22T08:07:40","slug":"eu-to-ban-deutsche-bahns-financial-support-for-db-cargo","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=112710","title":{"rendered":"\u2018EU to ban Deutsche Bahn\u2019s financial support for DB Cargo\u2019"},"content":{"rendered":"

The European Commission is set to ban Deutsche Bahn\u2019s (DB) subsidies for its freight subsidiary DB Cargo. The freight operator\u2019s losses are sky-high, and the EU considers the financial support for the loss-making state-owned operator to be market distortion.<\/strong>
\n<\/span>From next year onwards, DB Cargo will have to make do with its own financial resources. It can no longer count on support from its state-owned parent company Deutsche Bahn. S\u00fcddeutsche Zeitung reports that the EU ban on the support scheme is an \u201cexpected result of a procedure at the EU Commission\u201d, based on company sources. The publication says that DB\u2019s supervisory board has been notified of the decision. DB did not comment on the issue.<\/p>\n

As a state-owned operator, DB Cargo receives financial support from Germany\u2019s federal government through parent company DB. Its losses are therefore compensated with state money. They reached nearly 500 million euros in 2023, and compensation for all those losses gives DB Cargo an unfair advantage over private competitors who cannot count on such support, considers the EU.<\/p>\n