EC investigates cash for Belgian Post Office

15th July 2009, Comments 0 comments

The European Commission (EC) is examining if the money the Belgian authorities provided for the Post Office was in conflict with European law regarding authorised state aid.

The EC is looking at public funding for the Post Office from 1992 until the present day.

Many billions of euros were channelled to the Belgian Post Office to allow restructuring operations and finance retirement pensions.

The Belgian Post Office's rivals, including Deutsche Post, have argued that the state aid gave the Post Office an unfair advantage.

On Tuesday Neelie Kroes, the European Commissioner charged with Competition, sent the Belgian Government a letter informing it of the investigation.

The EC investigation could take several months. The Belgian Post Office may be asked to repay some of the state aid.

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