Spain: aid worth €120 mln to companies that move goods by train instead of by road 22/03/22

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Source: https://www-larazon-es.cdn.ampproject.org/c/s/www.larazon.es/economia/20220322/z6hk4vnaqre7hddlp52z3n2n64.html?outputType=amp

 

Spain will give aid worth 120 million euros to companies that move goods by train instead of by road

The European Commission gives the green light to the Spanish plan to offer direct subsidies that offset the cost of this transition

 


View of a freight train on the Teruel-Zaragoza railway line, near the municipality of Navarrete del Río, Teruel

View of a freight train on the Teruel-Zaragoza railway line, near the municipality of Navarrete del Río, Teruel PHOTO: ANTONIO GARCIA EFE

WHILE SPANISH ROAD TRANSPORT NEGOTIATES WITH THE GOVERNMENT MEASURES TO ALLEVIATE HIGH FUEL PRICES , THE EUROPEAN COMMISSION IS COMMITTED TO PARKING TRUCKS AND MOVING FREIGHT TRANSPORT TO RAIL. YESTERDAY, THE EUROPEAN COMMISSION AUTHORIZED AN AID PLAN WORTH 120 MILLION EUROS DESIGNED BY THE SPANISH GOVERNMENT TO "GREEN" RAIL TRANSPORT AND ENCOURAGE THE SWITCH TO THIS MEANS OF ROAD FREIGHT TRANSPORT , CONSIDERING THAT THIS INITIATIVE, WHICH WILL BE FULLY FINANCED WITH EUROPEAN RECOVERY FUNDS, IT IS A NECESSARY, PROPORTIONATE AND BENEFICIAL MEASURE FOR THE ENVIRONMENT.

 

The Spanish plan will run until June 30, 2026 and its objective is to offer direct subsidies to transport companies to compensate for the higher cost of moving goods by rail instead of by road . Regarding the distribution of the amounts, Brussels explained in a statement that the compensation will be paid based on the actual volumes of goods that go from being transferred by road to rail transport. The amount of the aid will also be calculated on the basis of the environmental performance of the railway companies, which it hopes will incentivize these practices. In this way, the plan will be "beneficial for the environment and mobility" and will contribute to achieving the transition from road transport to rail, Brussels valued.

The vice president of the Community Executive responsible for Competition, Margrethe Vestager, argued yesterday that "the approved regime will contribute to improving the competitiveness and greening of freight transport by rail in Spain" and, in addition, stressed that the objectives of the plan are "in line with with the European Green Deal” and also “limit the possible distortions of competition”.

The "yes" of Brussels to the Spanish proposal occurs in the midst of a carrier strike due to the rise in fuel prices, which has reached new historical highs . The strike, which is now in its ninth day, is giving rise to serious supply problems in many sectors, such as the agri-food sector, highlighting the dairy , hospitality , construction, industry and even gas stations.

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