EU Commission Approves French State Aid for Corsica Linea

Brussels (Eurotoday) – EU Commission green light French State aid to Corsica Linea and La Méridionale for maritime transport services.

The European Commission has figured that a €853.6 million public service compensation in favour of Corsica Linea and La Méridionale is in line with EU State aid regulations. According to the Commission, the French efforts will compensate both parties for the provision of passenger and freight maritime transport services between Marseille and Corsica (Ajaccio, Bastia, Propriano, Porto-Vecchio and L’Île Rousse) in 2023-2030.

Why was an in-depth investigation required for the aid approval?

As reported by the EU Commission, in February 2024, it unlocked an in-depth investigation to evaluate whether a public service compensation granted to Corsica Linea and La Méridionale (alone or jointly) under five public service agreements for the period from 1 January 2023 to 31 December 2030 is in line with EU State aid rules, and especially the Service of General Economic Interest (‘SGEI’) Framework.  

After an in-depth examination, the Commission found that the measures are in line with EU State aid rules. Submissions from France and interested parties clarified the questions initially presented by the Commission.

What did the Commission discover about the Marseille-Corsica transport market?

Specifically, the French authorities verified that market forces alone could not meet the entire user demand for towed freight between the port of Marseille and the five Corsican ports. The Commission first discovered that the market offer between Marseille and Corsica was inconsistent and insufficient. It further established that, as far as the transport of towed freight was concerned, Marseille was substitutable with neighbouring ports only for a limited period. 

The Commission also discovered that the minimum volumes of freight to be transported set by the public service agreements were not manifestly disproportionate. In particular, it discovered that the French authorities had set those volumes by taking into concern the need to avoid any saturation of the ships and ensure a seamless flow of the goods. 

During the formal investigation, the Commission closely reviewed the historical data and forecasted traffic provided by France. Those elements demonstrated that there was a serious risk that such saturation could occur regularly for the agreements, which could ultimately damage the proper functioning of the public services and affect the users’ needs. On this basis, the EU Commission acquiesced to the French measures under EU State aid rules.