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Thursday, May 24, 2012
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Commission opens in-depth inquiry into Italian support to former Tirrenia Group

05/10/2011 07:58 (232 Day 10:52 minutes ago)

The FINANCIAL -- Brussels, 5 October 2011 - The European Commission has opened an in-depth investigation under EU state aid rules into several public support measures in favour of companies of the former Tirrenia Group, which operate ferries between mainland Italy and various islands.

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The Commission is concerned that the public service compensation granted by Italy to these companies for operating certain maritime routes could procure them an unfair economic advantage over competitors. The Commission will also investigate whether additional support granted to Tirrenia Group companies in the context of their privatisation may distort competition.

The Commission had received complaints concerning the prolongation of the public service contracts after the expiry, in December 2008, of the Conventions that governed the services, as well as aspects of the privatisation process.

The Commission will in particular assess whether this prolongation of public service contracts beyond the end of 2008 was done in line with EU rules on Services of General Economic Interest (SGEI).

The firms concerned are Tirrenia di Navigazione, Caremar, Saremar, Siremar and Toremar. The contracts relate to the maritime transport between mainland Italy with Sicily, Sardinia and other Italian islands.

Commission Vice-President in charge of competition policy Joaquín Almunia said: "Member States must, of course, compensate companies for the extra costs incurred when providing a service of general economic interest. However, the Commission also has a duty to ensure that those services have been clearly defined and that there is no over compensation. The Commission commends the steps undertaken by Italy to open up the maritime cabotage market but must also ensure that the privatisation of two of the companies, Tirrenia di Navigazione and Siremar, did not entail undue subsidies".

The opening of an in-depth probe allows interested third parties to submit comments on the measures under examination. It does not prejudge the outcome of the investigation.

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Politics
International monitors to pull out of Bosnia's Brcko

24/05/2012 03:32 (15:18 minutes ago)

The FINANCIAL -- International monitors decided Wednesday to pull out of the sensitive Bosnian town of Brcko, whose neutral status has been a source of tensions in the ethnically-divided Balkan state.

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