On 29 November 2024, the European Commission announced its approval of a German state aid of €1.9 billion for DB Cargo. However, the approval is contingent on the implementation of a restructuring plan to ensure the company's sustainability by the end of 2026. The Commission opened an in-depth investigation in January 2022, following a complaint by a competitor, to verify the nature of four measures adopted by the German state in favour of DB Cargo.
These measures included: a loss transfer agreement between DB and DB Cargo in place since 2012, alleged preferential treatment for intra-group services, advantageous group financing conditions, and the partial coverage of wages for former Deutsche Bundesbahn public employees assigned to DB Cargo. The investigation concluded that the loss transfer agreement between DB and DB Cargo constituted state aid, which will be discontinued from 1 January 2025.
The other three measures, however, were not deemed state aid, as the Commission considered them to be routine operations, not influenced by the state. The partial coverage of public employees' wages was judged to be in line with market conditions. Financial support for DB Cargo was assessed according to the guidelines for rescue and restructuring aid.
The Commission concluded that the aid is compatible with the internal market, provided that the restructuring plan is successfully implemented. This plan involves a series of measures aimed at streamlining the company's operations and reducing costs, with the goal of ensuring its long-term sustainability by the end of 2026. The divestments of activities and assets by DB Cargo, pledged by Germany, are intended to mitigate the competitive distortions caused by the state aid.
The Commission also emphasised that rail freight transport is essential as a lower-emission alternative to road transport, contributing to the creation of sustainable logistics networks. This element was considered an additional factor in favour of approving the state aid.
