Corsica: the European Union is investigating state aid granted to two ferry companies

The European Commission announced on Friday February 23 that it had opened an “in-depth investigation” into state aid granted by France to two ferry companies serving Corsica

Corsica: the European Union is investigating state aid granted to two ferry companies

The European Commission announced on Friday February 23 that it had opened an “in-depth investigation” into state aid granted by France to two ferry companies serving Corsica.

This investigation must “evaluate whether the public service compensation granted to Corsica Linea and La Méridionale for serving Corsica between 2023 and 2030 complies with European Union rules on state aid,” specified the European executive. “The opening of the investigation gives France and other interested parties the opportunity to present their comments and in no way prejudges its outcome,” insists Brussels, watchdog of competition within the single market.

In 2022, the Corsican Assembly voted to award a maritime public service delegation, from 2023 to the end of 2029, to Corsica Linea and La Méridionale for “maritime transport of passengers and goods”. Since January, these two companies have therefore shared, individually or in coordination, the five connections between the island (ports of Ajaccio, Bastia, Propriano, L’Île-Rousse and Porto-Vecchio) and Marseille.

Checks to avoid “overcompensation”

France has notified Brussels of “[total] compensation of 853.6 million euros for the provision of these services”, recalls the press release. “At this stage, based on its preliminary assessment, the Commission considers that additional information is necessary to determine whether these public compensations paid to Corsica Linea and La Méridionale comply with EU rules,” he adds. .

In particular, Brussels wants to verify “whether the inclusion of the transport of towed goods and road drivers in the contracts is justified by a need for a public service, taking into account the already existence on the market of a commercial offer” since a neighboring port. Likewise, the European executive wonders whether the volume of goods traffic provided for in the contracts “does not exceed the public service need identified by the authorities”.

Under EU rules on state aid for public service compensation, companies can be compensated for the additional cost of providing a public service, but subject to certain strictly regulated criteria. And this is to ensure that they do not receive “overcompensation”: the idea is to guarantee optimal use of public funds while “minimizing distortions of competition”, recalls Brussels.