On Tuesday, November 26, the European Commission approved the state aid granted by the French authorities to support maritime transport between Corsica and the mainland, as part of the 2023-2030 public service delegation (DSP). This decision was a huge relief for both the Corsican authorities and the concerned maritime companies. The Commission concluded its in-depth investigation, which was initiated on February 23, regarding the financial compensation paid by the region to Corsica Linea and La Méridionale to maintain public service connectivity to the island between 2023 and 2030.
For the regional executive, this approval signifies validation of the public service delegation, with Gilles Simeoni, the President of the nationalist executive, calling it « a significant victory for Corsica. » The management of Corsica Linea also expressed their satisfaction, describing the European green light as « excellent news that secures and ensures the longevity of the framework for the maritime service to Corsica. »
A budget of €853.6 million The investigation was launched by Brussels to determine if the aid complied with the European Union’s competition laws. At the heart of this issue is a budget of €853.6 million, which will be shared over the duration of the DSP by the two companies responsible for serving the five ports of the island from Marseille.
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The investigations were particularly focused on determining whether these compensations were justified or if they constituted state aid prohibited by European law. Brussels’ main concern was the support for freight transport, and specifically whether « the inclusion of the transport of towed goods and truck drivers in the contracts was justified by a public service need, given the already existing commercial offer on the market, » namely the service provided by the maritime company Corsica Ferries from Toulon.
« An important first step »
The Commission ultimately concluded that, given the large volume of freight to be transported between Corsica and the mainland, the support for La Méridionale and Corsica Linea was neither « disproportionate » nor likely to distort the market in their favor to the detriment of Corsica Ferries. This company, which felt disadvantaged by these compensations, was the one that initiated the investigation through a formal complaint.
Also read: The maritime DSP 2023-2029 challenged by Corsica Ferries
A long-standing dispute has existed between Corsica Ferries and the Collectivity of Corsica. In September 2021, the region was ordered to pay Corsica Ferries a record compensation of €86.3 million for the aid given to the former SNCM between 2007 and 2013, with half of the amount covered by the state. This likely explains the relief from the government upon the announcement of this decision from Brussels on Tuesday: « I welcome this decision, » commented Catherine Vautrin, the Minister for Territorial Partnerships and Decentralization, speaking to Corse-Matin. « It reaffirms the importance and the need for public service in maritime transport between Corsica and Marseille. This decision, the result of quality work carried out by all our administrations, in collaboration with the Collectivity and its transport office, is an important first step in ensuring a secure future for maritime transport between Corsica and the mainland. »
Source: corsematin
