STATE AID: COMMISSION APPROVES €6 BILLION GERMAN SCHEME TO COMPENSATE PUBLIC TRANSPORT COMPANIES FOR DAMAGES SUFFERED DUE TO CORONAVIRUS OUTBREAK

 The European Commission has approved, under EU State aid rules, a €6 billion German scheme to   compensate companies providing regional and local public passenger transport services in Germany for   the damage suffered due to the coronavirus outbreak and the emergency containment measures   introduced in Germany to limit the spread of the virus.The German government has put in place   emergency measures necessary to limit the spread of the coronavirus such as the closure of schools   and nurseries, extended telework arrangements, social distancing rules and restrictions on gatherings.   This has severely affected regional and local public transport services, as passenger numbers in local   public transport by road and rail decreased between 70% and 90%, resulting in a significant drop in   revenues. Furthermore, transport operators had an obligation to maintain a sufficient frequency of   regional and local passenger transport services to ensure mobility of people without access to   alternative means of transport, including critical workers such as health professionals. The situation was exacerbated by additional costs incurred by transport operators in relation to measures aimed at containing the spread of the contagion, such as enhanced sanitary and hygiene measures. All of this has led to serious liquidity problems that risk driving many of the transport operators out of the market.

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