NoL229/24 OfficialJournaloftheEuropeanCommunities 20.8.76
COMMISSION DECISION
of4May1976
onaidfromtheBelgianGovernmenttotheSocietenationaledescheminsdeferbeiges
(SNCB)forthroughinternationalrailwaytariffsforcoalandsteel
(OnlytheFrenchandDutchtextsareauthentic)
(76/649/EEC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ,andinparticular
Article93thereof,Whereason8October1975theCommission ruled
thattheaidgrantedtoSNCBbytheBelgian
Governmenttocompensateitforlossessustainedas
aresultofapplyinginternationalrailwaytariffsto
thecarriageofECSCproductsissubjecttoArticles
92and93oftheEECTreaty;whereasthemeasurein
questioncannotbejustifiedonthebasiseitherof
Article92(2)and(3)oftheTreatyorofArticle3of
CouncilRegulation (EEC)No1107/70;whereasthe
CommissionthereforecalledupontheBelgian
Government andtheGovernments oftheother
MemberStatestopresenttheirobservations ;Havingregardtotheobservationspresentedbythe
partiesconcerned,
Whereassince1971theBelgianGovernmenthasbeen
grantingaid,estimatedatBfrs525millionin1975,to
theSocietenationaledescheminsdeferbeiges
(SNCB)ascompensation forfinancialburdens
which,accordingtothatGovernment ,resultfrom
applyingtoECSCproductsthroughinternational
tariffsestablishedinaccordancewiththeAgreement
of21March1955(*),signedbytheMemberStates
pursuanttoArticle70oftheECSCTreaty,and
Article10oftheConvention onthetransitional
provisions;Whereas,inaletterdated14November1975,the
BelgianGovernmentstatedthattheaidinquestion
doesnotaffecttradebetweenMemberStatesand
cannotdistortcompetitionbyfavouringcertain
undertakingsorcertainproductssinceitdoesnot
alterthelevelofthetransporttariffsandsoisnot
passedontoSNCB'sclients;whereasthe
Commissioncannotsharethisview,sincegranting
theaidinquestionenablesSNCBtokeepitstariffs
lowerthantheyshouldbeandtochargeitsusersa
morefavourabletariff;whereasaidgrantedtoa
singleundertakingortoasinglemodeoftransport
withthepurposeofreducingtheratesappliedfor
international trafficautomatically affectstrade
betweenMemberStatesinthatitdistortsor
threatenstodistortcompetitionbyfavouringcertain
undertakingsorcertainproducts;WhereastheBelgianGovernmentoriginallyjustified
thegrantingofthisaidonthebasisofArticle2(5)
ofCouncilRegulation (EEC)No1191/69of26June
1969onactionbyMemberStatesconcerningthe
obligationsinherentintheconceptofapublic
serviceintransportbyrail,roadandinland
waterway (2);
Whereas,asaresultofobjectionsraisedonthis
subjectbytheCommissiondepartments ,theBelgian
Governmentchangeditsinitialpositionbyjustifying
theaidonthebasisofArticle3(2)ofCouncil
Regulation (EEC)No1107/70of4June1970onthe
grantingofaidsfortransportbyrail,roadand
inlandwaterway(3);WhereastheCommissioncannotaccepttheBelgian
Government 'sviewthatwhatisinvolvedhereis
compensation foratariffobligationpursuantto
Article3(2)oftheabovementioned Regulation
(EEC)No1107/70,i.e.atariffobligationnotfalling
withinthedefinitiongiveninArticle2(5)of
Regulation (EEC)No1191/69;whereasArticle3(2)
relatesonlytoaidasreimbursement forthe
dischargeofobligationsinherentintheconceptofa
publicservice;whereasbyvirtueoftheruleslaid
downintheAgreementof21March1955onthe
establishmentofthroughinternationalrailwaytariffs
thatAgreementdoesnotconstituteapublicservice(!)OJNo9,19.4.1955,p.701.
HOJNoL156,28.6.1969,p.1.
(3)OJNoL130,15.6.1970,p.1.

20.8.76 OfficialJournaloftheEuropeanCommunities NoL229/25
measureswhich,aslongasthegeneraltariff
situationismaintained,representthemost
appropriatemeansofensuringcompliancewiththe
principleembodiedintheECSCTreatywhich
requirestransportundertakings ,likecoalandsteel
producers,tooffertheirclientscomparableratesfor
comparableservicesonallECSCmarketswithinthe
Community ;whereasthe1955Agreementmerely
establishesastructuresothatrailwaytariffsfor
internationaltrafficarecompiledinsuchawayasto
guaranteethecomparability oftheresultingrates
withdomestictransportrates;whereasthe
Agreementdoesnotaffectthefreedomofrailway
undertakingsasregardsthelevelofthesetariffsand
thedifferentiation oftheirtariffsystems,in
particularasaresultofthestateofthemarkets
concerned;whereasSNCBhasmadeuseofthis
possibilitybygrantingspecialtariffsfordomestic
trafficwhicharelowerthanthegeneraltariffs;
whereasitisatpresentapplying39specialtariffs,
theratesofwhichareinmanycaseslowerthan
wouldresultunderthe1955Agreement,for
international trafficwiththeotherCommunity
networks;obligationpursuanttoArticle3(2)butameansof
enforcingtherulesonnon-discrimination of
Article4(b)andthefirstandsecondparagraphsof
Article70oftheECSCTreatywhichreflectoneof
theprinciplesofthecommonmarketincoaland
steel;whereaswhenconcludingtheAgreementof
21March1955,theMemberStatesexpresslystatedin
Article18thereofthatbyittheyhadundertaken
'onlythoseobligationswhicharewithinthescopeof
theTreatyandoftheConventionandwhichhaveas
theirpurposetheimplementation ofthoseinstru­
ments';
Whereastheabovementioned rules,whichare
intendedtoimplementafundamentalprincipleof
thecommonmarketinECSCproducts,applytoall
partiesinvolvedinthismarketandalsodetermine
thecommercialbehaviouroftransportundertakings
asregardsthecarriageofcoalandsteel,irrespective
oftheirstatusandtheirpolicyregardingthe
compilationoftransportrates;
WhereasthefactthatArticle10oftheConvention
„onthetransitionalprovisions,whichprovidedfor
theestablishmentforcarriagewithintheCommunity
ofthroughinternational tariffsincorporating a
degressivefactortakingaccountoftotaldistance,has
sofarbeenenforcedonlyinrespectoftherailways
isnotduetoanydesiretoclassthetransportservices
inquestionasapublicservicebutissolelytheresult
ofthestructureoftheseundertakings ,eachofwhich
servesadomesticnetworkandappliesdomestic
tariffs,whichmakesitnecessary,fortransport
betweenMemberStates,toestablishinternational
tariffsinaccordance withtherulesofthe
abovementioned provisionwhichweredefinedmore
preciselyinthe1955Agreementsoastocomply
withtheprincipleofnon-discrimination enshrinedin
theTreaty;
WhereastheCommissioncannotsharetheBelgian
Government'sviewthatbyprescribingthe
applicationofthroughinternational tariffsin
accordancewithanimposedmethodwhereby
reductionsaregrantedonthetariffsnormally
applyingtodomestictransportoverthesameroute,
the1955Agreemententailslossesofrevenuefor
SNCBfromtheinternational carriageofECSC
products;whereas,intheabsenceofanimposed
structureforECSCinternationaltariffs,SNCBcould
haveraisedthem;whereas,inthepresent
circumstances ,internationaltransportratesarelower
thanthetariffsnormallyapplyingfordomestic
trafficineverycase,irrespectiveofthelevelofthe
tariffs;Whereas,concerningtherulingoftheFrenchCouncil
ofStatein1961onadisputebetweentheFrench
Railways (SNCF)andtheFrenchGovernment
concerningECSCtariffs,itshouldbenoticedthat
thisruling,givenondifferentlegalgroundsina
periodwhenRegulation (EEC)No1107/70wasno.t
inforce,cannotbetreatedasaprecedentforthe
interpretation ofCommunityinstrumentsand
moreoverthisrulingconcernedasituation
fundamentally differentfromthesubjectmatterof
thisDecisionsincetheSNCFwasnotauthorizedto
raiseitstariffs;
Whereastheseconsiderations donotpreventthe
BelgianGovernmentfromgrantingtheaidin
questionunderArticle4ofRegulation (EEC)No
1107/70;whereasthisformaldistinctionisan
importantoneofprincipleasregardsactionforthe
progressiveimprovement ofthesituationofthe
railwaysundertakenaspartofthecommontransport
policy,
HASADOPTEDTHISDECISION :
Article1
WhereastheBelgianGovernment hasfailedto
appreciatethecharacterandthepurposeoftheseTheaidgrantedbytheBelgianStatetotheSociete
nationaledescheminsdeferbeiges(SNCB)for

NoL229/26 OfficialJournaloftheEuropeanCommunities 20.8.76
throughinternationalrailwaytariffsforcoaland
steelonthebasisofArticle3(2)ofCouncil
Regulation (EEC)No1107/70of4June1970onthe
grantingofaidsfortransportbyrail,roadand
inlandwaterway,asamendedbyRegulation (EEC)
No1473/75of20May1975isnotcompatiblewith
thecommonmarkettotheextentthatitshouldbe
grantedunderArticle4ofthesaidRegulation .
TheKingdomofBelgiumshalltakethenecessary
action,assoonaspossibleandatthemostwithin
threemonths,eithertoterminatetheaidinquestion
ortomodifyitslegalbaseinorderthatthisaidmay
begrantedundertheprovisionsofArticle4of
Regulation (EEC)No1107/70.Article2
ThisDecisionisaddressedtotheKingdomof
Belgium.
DoneatBrussels,4May1976.
FortheCommission
ThePresident
Francois-Xavier ORTOLI