EU rules out shortsea state aid distortion

 

State aid to maritime transport will not be allowed to distort the market for existing services, Brussels Transport Commissioner Antonio Tajani said . The European Union’s Motorways of the Sea will be funded in a way that respects competition rules, Mr Tajani told journalists at a Brussels briefing recently.

“We hope there will not be distortion,” he said. “There are checks. There are [European] Community rules. We can do it in a way without distortion.”

The briefing aimed to drum up interest for a meeting of ministers from Europe and neighbouring countries next week in Naples, Italy. Participants at the two-day event will discuss ‘”the future of trans-European transport networks”, a subsidy programme dominated by rail but that can now include maritime services.

There have been signs of increased state intervention in Europe’s shortsea shipping market, including operating aid. Objections have been raised from companies that fear losing traffic to state-supported services. Mr Tajani’s officials will have to decide if these complaints are justified.

The Italian commissioner said that in Naples he would corral Europe towards greater investment in Africa, where other countries — namely China, India and Brazil — have stolen a march. Europe has to engage with Africans with a “different mentality”, he said: “Not a colonial mentality but a friendly mentality.”

Investment in African ports was mentioned, as was the possibility of stimulating maritime services between Europe and north Africa. At present, EU funding in the Mediterranean is limited to feasibility studies, an aide to Mr Tajani said

Source: Lloyds List, October 2009