green light from the EU for public aid from

green light from the EU for public aid from
green light from the EU for public aid from France

The European Commission on Tuesday approved state aid granted by the French authorities to Corsica Linea and La Méridionale, two ferry companies providing passenger and freight connections between and Corsica.

“After a thorough investigation, the Commission concluded that the measures complied with EU state aid rules”announced the European executive, which ensures respect for free competition in the EU.

“The contributions from and interested parties have clarified the questions initially raised by the Commission”he added in a press release.

At the heart of the file is support known as « compensation de service public » of an amount of 853.6 million euros granted to Corsica Linea and La Méridionale, and relating to the service of Corsica over the period 2023-2030.

As part of the subsidized public maritime service, these two companies have shared since January 2023, individually or in coordination, the five connections between the Mediterranean island (ports of , , Propriano, L'Île-Rousse, Porto-Vecchio) and Marseilles.

In February, the European Commission announced that it was opening an in-depth investigation into this public aid.

The investigation was intended in particular to verify “if the inclusion of the transport of towed goods and road drivers in the contracts (was) justified by a need for a public service, taking into account the already existence on the market of a commercial offer” by the Corsica Ferries company from , a neighboring port of Marseille.

The investigation announced on February 23 by Brussels followed new complaints filed by Corsica Ferries with the European Commission in spring 2023.

For years, this maritime company operating under the Italian flag (and leader in the transport of passengers between Corsica and the continent) has been in dispute with the Corsican Community.

Ultimately the European Commission judged that given such a volume of freight to be transported between Corsica and the continent, support for La Méridionale and Corsica Linea was not likely to unbalance the market in their favor and to the detriment of Corsica Ferries.

“These volumes transported by companies under public service contracts are clearly not disproportionate”the Commission underlined on Tuesday.

Corsica Linea welcomed the green light from Brussels for public aid, seeing it as a way of “stabilize the public maritime service between Corsica and Marseille”.

“This is excellent news (which) secures and perpetuates the framework of the public service delegation for maritime services to Corsica. It also strengthens Marseille as the freight port for Corsica”indicated this company in a press release.

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