In accordance with the temporary framework to support the economy and to ensure businesses sufficient liquidity to preserve the continuity of their economic activity during the coronavirus outbreak, on 10 August 2021 the Commission approved the €550 million supplied by the German government in the form of an equity injection to compensate Deutsche Bahn AG (“Deutsche Bahn”) for having covered the losses suffered by its subsidiary DB Fernverkehr between 16 March and 7 June 2020 for domestic travels and between 16 March and 30 June 2020 for international travels due to the coronavirus.

Like other companies active in the rail sector, between March and June 2020 DB Fernverkehr experienced a significant drop in the number of rail passengers due to the measures that Germany and other Member States implemented to limit the spread of the coronavirus, which resulted into a significant decline in revenues and losses covered by Deutsche Bahn through an agreement reached with its subsidiary.

According to the Commission, the measure introduced by the German government is necessary, appropriate and proportionate to remedy the company’s losses due to the containment measures introduced to face the coronavirus, which can be considered as a damage directly linked to an exceptional occurrence under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU). Furthermore, the measure is in line with the conditions set out in the temporary framework, given that i) it takes into account the track access reductions for long-distance passenger transportation that DB Fernverkehr is expected to receive on the basis of a scheme that the Commission already approved on 30 July 2021, and ii) the public support received by Deutsche Bahn in excess of the actual damage suffered will have to be returned to the government.

Marco Stillo