The European Commission approved a EUR 511 million Italian state aid to compensate providers of commercial, long-distance rail passenger services for the damage suffered between 8 March and 30 June 2020 due to the coronavirus outbreak and the restrictive measures that Italy had to implement to limit the spread of the coronavirus.
This “aid measure will enable Italy to support long-distance rail passenger operators on commercial lines in these difficult times, by compensating them for the damage suffered as a result of the emergency measures that Italy put in place during the first wave of the pandemic,” Margrethe Vestager, the EU Commissioner for Competition said.
In the mentioned period, the Italian government has introduced measures were necessary to limit the spread of the coronavirus, including, until 3 June 2020, a general prohibition to travel across regions. Further restrictions remained in place also in June, in particular a mandatory staggered seating reservation system that cut available seats by 50%. Those mandatory restrictions severely affected long-distance rail passenger transport providers.
In the period March – June 2020, passenger numbers fell by up to 100% compared to 2019, resulting in a significant drop in revenues for rail passenger transport operators. At the same time, transport operators continued to face various costs, in particular additional expenditures to enhance sanitary and hygiene measures. This led to serious liquidity problems, which risk driving transport operators out of the market.
Italy notified the aid scheme, which is part of a wider measure designed to compensate providers of commercial rail passenger services, namely those operators that are not subject to public service obligations, for the damage suffered as a direct consequence of the coronavirus outbreak and the resulting containment measures. Under the notified measure, the beneficiaries will be entitled to compensation in the form of direct grants.
Italy will ensure that no individual beneficiary receives more in compensation than what it suffered and the Italian state aid will compensate the damages that are directly linked to the coronavirus outbreak.
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