European Commission Approves Germany's Bailout Of About $644Mln For Deutsche Bahn
Umer Jamshaid Published August 11, 2021 | 12:32 AM
The European Commission announced on Tuesday that Berlin's allocation of approximately 550 million euros ($644 million) to compensate Deutsche Bahn (German Railway) for damages suffered by its subsidiary DB Fernverkehr during the COVID-19 pandemic was in line with EU rules
MOSCOW (UrduPoint News / Sputnik - 10th August, 2021) The European Commission announced on Tuesday that Berlin's allocation of approximately 550 million Euros ($644 million) to compensate Deutsche Bahn (German Railway) for damages suffered by its subsidiary DB Fernverkehr during the COVID-19 pandemic was in line with EU rules.
The measure, which will take the form of equity injection, would compensate Deutsche Bahn for damages sustained by its subsidiary DB Fernverkehr due to pandemic restrictions between March 16 and June 7, 2020 for domestic travel and March 16 to June 30, 2020 for international travel.
Vice President of the commission Margrethe Vestager expressed the commitment of the bloc to help member states rescue sectors of their economies hit by the pandemic.
As the COVID-19 pandemic has unfolded, many countries have adopted severe restrictions to stop the virus from spreading, undermining their economies in the process and sparking a need for additional measures to facilitate economic restoration.
DB Fernverkehr is a German rail services operator that provides national and international long-distance train services. Due to the steps Germany and other Member States have implemented to contain the virus, DB Fernverkehr, like other rail operators, has seen a considerable reduction in the number of long-distance train passengers.
Due to this, the firm suffered substantial operating losses and saw a considerable drop in revenue. In line with a profit and loss transfer agreement between Deutsche Bahn and DB Fernverkehr, these losses were paid by the parent firm Deutsche Bahn by the end of 2020.