DEUTSCHE POST FACES EUROPEAN COMMISSION PROBE OVER UNIVERSAL SERVICE SUBSIDIES
September 1st, 2007
BY KEITH NUTHALL
DEUTSCHE Post's (DP) new chief financial officer John Allan is facing a European Commission inquiry into subsidies paid by the German government for making un-commercial deliveries in remote areas. Under European Union (EU) state aid rules, companies undertaking such 'universal service' obligations can receive public subsidies. However, these cannot be larger than the losses incurred, and Brussels thinks DP has been featherbedded, helping it compete unfairly with private carriers. A Commission statement said: "No universal service provider ...
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