Not necessary to negotiate with EU €1.815B aid to country’s rail operator

  • Lusa
  • 15 October 2021

"I don't see the need to negotiate from the outset, what we have to do is ensure that the way we do [CP's debt reduction] is compatible with State aid rules," João Leão said to ECO.

The Finance Minister said on Friday that it will not be necessary to negotiate with Brussels on the exceptional expenditure of €1.815 billion with CP (Portugal’s rail operator) as the aim is to fit the measure within state aid rules.

“I don’t see the need to negotiate [with the European Commission] from the outset, what we have to do is ensure that the way we do [CP’s debt reduction] is compatible with State aid rules,” João Leão said during an interview with ECO.

The finance minister also said that the measure included in the State Budget proposal for 2022 (OE2022) aims to continue the measure to reduce CP’s debt, but as the company operates in a competitive market and is subject to State aid rules, the measure “has to be done with balance and with a guarantee that this substantial reduction in debt is compatible” with those rules.

According to the report accompanying the draft State Budget for 2022, the Finance Ministry has entered a figure of €1.815 billion in exceptional expenditure for 2022, as capital endowments, for the rail operator. In 2021, this figure was €70 million.

In the report, the Ministry explains that “in relation to costs with financial assets, financing to SEE [State Business Sector] companies stands out, with particular relevance to the component of commissions and other costs.

According to CP’s annual report, the value of the group’s financial debt at the end of 2020 was around €2.132 billion.