Press Release: State aid : Commission recommends that France withdraw the unlimited state guarantee for the French Post Office

The Commission has sent France a recommendation that it end the unlimited guarantee enjoyed by the French Post Office (La Poste) in its capacity as a public body by the end of 2008. As part of its monitoring of existing state aid schemes under the EC Treaty, the Commission examined the guarantee under which the state has responsibility for liabilities entered into by the La Poste. The fact that the guarantee is unlimited allows La Poste to obtain finance on more favourable terms, giving it an advantage over its competitors and thus distorting competition on a market which is in the process of being liberalised. France has one month to respond to the Commission's recommendation.