Press Release: State aid: Commission endorses public service compensation for UK Post Office Ltd

The European Commission has authorised, under EU state aid rules, £180 million (€212 million) of public assistance to the UK Post Office Ltd for the funding of its network of post offices during one year starting 1 April 2011. The Commission also authorised the continuation, over the same period, of existing loan facilities funding the provision of cash services at post office counters. The Commission concluded that the aid is compatible with EU rules because it does not overcompensate the net costs of the important public service tasks entrusted to Post Office Ltd. and so does not give the Post Office Ltd any unfair competitive advantage.