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Global Economy

EU allows Corona aid for Deutsche Bahn

The EU Commission today approved the corona aid for Deutsche Bahn decided by the federal government. Specifically, it was about state aid of 215 million euros, which was intended to compensate Deutsche Bahn for the losses incurred in spring 2020. Due to the contact restrictions during the pandemic, the DB Group and its three subsidiaries DB Netz, DB Energie and DB Station & Service suffered damage from March to the end of May 2020.

State subsidies are actually forbidden in the EU because they distort competition – with the exception of subsidies that are compatible with the internal market. The Commission approved the aid under an exemption clause. According to the Brussels authority, the support measure was examined on the basis of Article 107 of the Treaty on the Functioning of the European Union. According to it, aid granted by the Member States to compensate for damage caused by extraordinary events can be approved.

"Extraordinary Event"

"The Commission considers that the Covid-19 pandemic constitutes such an exceptional event as this unprecedented situation could not have been foreseen and is having a significant impact on the economy," the agency's statement read today.

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