In accordance with the European State aid rules, on 17 December 2020 the Commission approved the €200 million German scheme to support companies willing to connect their facilities to the public railway network, thereby encouraging the shift of freight traffic from road to rail.

Following the previous €500 million funding to support research, development and innovation in the rail freight transport sector, the scheme aims at contributing to reduce road congestion and CO₂ emissions in line with the goals of the European Green Dealand the new European strategy for a smart and sustainable transport. More particularly, through a yearly budget of €40 million until 2025, the scheme will support the development of private connecting railways and other infrastructure promoting modal freight, including transshipment ones, compensating companies, respectively, for up to 50% and 80% of costs. 

Besides being proportionate and necessary to achieve the objective pursued, the new measures are beneficial for the environment and for mobility, as they support rail transport while also decreasing road congestion. Therefore, the measures were approved by the Commission inasmuch as they comply with Article 93 of the Treaty on the Functioning of the European Union (TFEU).

Marco Stillo