The European Commission has launched a thorough investigation of German government support for state-owned DB Cargo and whether it complies with state aid rules.

European Commission investigates German support for DB Cargo

This is reported by the railway magazine Railway Supply with reference to the Railway Gazette.

The Commission stated that DB Cargo was constantly losing money and that its losses were fully and permanently covered by the parent company DB AG.

The Commission received a complaint alleging that these and several other measures constituted inconsistent state aid and give DB Cargo an undue advantage by allowing the company to invest in expanding its business and renovating its rolling stock without regard to profitability or liquidity.

After a preliminary assessment, the European Commission announced on 31 January that it had decided to launch an in-depth investigation. The initiation of an in-depth investigation gives Germany, the applicant as well as interested third parties the opportunity to comment.

A DB spokesperson told Railway Gazette International that DB AG and DB Cargo AG will work closely with the federal government and the European Commission, stating that “DB Cargo AG has not received any illegal state aid. Deutsche Bahn has always acted in accordance with European law.”

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