WRITTEN QUESTION E-2635/00 by Karin Riis-Jørgensen (ELDR) to the Commission. Illegal state aid to Combus A/S.
Date: 2000-08-01
Institutions: European Parliament, Provisional data
Subjects: Denmark, State aid, control of State aid, means of public conveyance, public transport, restriction on competition, transport company

C 136 E/60

Official Journal of the European Communities

EN

8.5.2001

Such factors should also be carefully considered with a view to determining the need for more specific
European standards in respect of this type of product.

The Commission intends to present these conclusions to the appropriate bodies without delay.

(1) OJ L 228, 11.8.1992.

(2001/C 136 E/067)

WRITTEN QUESTION E-2635/00

by Karin Riis-Jłrgensen (ELDR) to the Commission

(1 August 2000)

Subject: Illegal state aid to Combus A/S

The State-owned Danish coach company Combus A/S has, with the help of State aid, been able to
compete with private (domestic and foreign) coach companies charging fares well below real cost.

According to my information the Association of Danish bus and coach operators had a meeting with the
Commission in Autumn 1999 at which they expressed their objections to the illegal State aid to Combus
A/S, and were given to believe that the Commission was going to take the matter further.

The Commission:

1. Has it completed its inquiries following the visit to Brussels of the Danish bus and coach operators in

Autumn 1999?

2.

If its investigations are still under way, can the Commission tell me what progress has been made and
in particular when it expects to have dealt with the question of illegal State aid to Combus A/S?

Answer given by Mrs de Palacio on behalf of the Commission

(23 October 2000)

State funding which distorts or threatens to distort competition by favouring certain undertakings and
which affects trade between Member States requires, in principle, the Commission(cid:146)s prior clearance. No
state aid notification under Article 88 (ex Article 93) of the EC Treaty has reached the Commission on the
issue of the financing of the Danish public transport company Combus A/S.

However, financial compensation for the provision of public transport by road and rail is exempted from
an a priori notification and assessment by the Commission under the Treaty(cid:146)s state aid regime if granted in
accordance with Council Regulation (EEC) No 1191/69 of 26 June 1969 on action by Member States
concerning the obligations inherent in the concept of a public service in transport by rail, road and inland
waterway (1) as amended by Council Regulation (EEC) No 1893/91 of 20 June 1991 (2).

Within the framework of the Regulation, Member States are free to choose the form of compensation they
grant companies to balance costs for the provision of public services. The Commission will react however
in cases of documented misuse of such aid provided that both a harmful impact on competition and an
effect on cross-border trade can be established.

The Commission has not taken a formal decision regarding its assessment of the financing of Combus A/S.
In view of the current market situation the Commission believes an immediate reaction is not required.

(1) OJ L 156, 28.6.1969.
(2) OJ L 169, 29.6.1991.