Press Release: State aid: Commission extends formal investigation against Germany concerning aid to Deutsche Post

The European Commission has extended a formal investigation under EU state aid rules into the compensation by the German State of the universal service obligations of Deutsche Post AG (DPAG). The extension concerns the subsidies paid by the State to cover the costs of the pensions of those employees, past and present, who have a civil servant status. Germany claims that pension subsidies compensate 'legacy costs' from the time when Deutsche Post was a postal administration and ought to be compatible with EU State aid rules.

However, Germany also allowed an increase in regulated letter prices specifically to cover DPAG's pension costs. The Commission is concerned that this translates into overcompensation of those 'legacy' pension costs for Deutsche Post to the detriment of competitors. The extension of the investigation procedure does not prejudge the final outcome of the investigation and gives the German Government and other interested parties the opportunity to comment. This is part of a long-running case, opened in 2007 which involves complaints by rival UPS and several cases at the European courts. Moreover, the Commission has not always been able to get the information it needs to come to a thorough final conclusion.

ESO: Background Information: Brussels overruled on ‘illegal’ state aid http://www.europeansources.info/record/brussels-overruled-on-illegal-state-aid/

---