Is the financing of the Fehmarn Belt Fixed Link project at odds with state aid rules?
The General Court will decide a case about the financing aid granted by the Danish State to the Fehmarn Belt Fixed Link project. Stena Line and Scandlines have brought an action before the General Court, claiming that the aid is incompatible with the internal market, and that the Commission’s decision to approve the aid should therefore be annulled.
The General Court’s consultation report in case T-630/15 – Scandlines Danmark ApS and Scandlines Deutschland GmBH vs the European Commission
The General Court’s consultation report in case T-631/15 – Stena Line Scandinavia AB vs the European Commission
By senior intern Mathias Rønø Bové
The action was brought as a result of the Danish State’s contemplated aid to the Fehmarn Belt Fixed link by way of 1) capital contribution of DKK 500 million and 2) various forms of guaranteed funding for the planning, construction and operation of the Fehmarn Belt Fixed link. The Danish State notified the European Commission of the funding model in 2014. It was then for the Commission to decide whether it amounted to state aid that was compatible with the internal market.
The Commission concluded that the measures did not constitute state aid, finding that an improvement of the infrastructure would not amount to an economic activity, and that the rail-road link would not affect trade between the member states. The Commission further noted that even if the funding constituted state aid, such aid would be compatible with the internal market under article 107(3)(b) TFEU as it would promote the execution of an important (infrastructure) project of common European interest.
Ferry operators Stena Line and Scandlines have subsequently brought an action before the General Court, arguing that the Commission’s decision should be annulled. Both operators have argued that the aid did actually constitute state aid with reference to the rail-road link. The parties claim that Danish railway operators are increasingly exposed to competition, and that therefore the aid is granted to an activity that may affect trade between member states.
The ferry operators also argue that the Fehmarn Belt Fixed link is not an important project of common European interest within the meaning of article 107(3)(b) TFEU, and that the aid is therefore incompatible with the internal market.
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