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Deutsche Post told to repay state aid by EU | |
(about 14 hours later) | |
The European Commission has told the German firm Deutsche Post DHL to repay between 500m euros ($648.3m, £415.9m) and 1bn euros in state aid. | The European Commission has told the German firm Deutsche Post DHL to repay between 500m euros ($648.3m, £415.9m) and 1bn euros in state aid. |
The German government has said it will comply with the ruling and ask for subsidies to be paid back this year. | The German government has said it will comply with the ruling and ask for subsidies to be paid back this year. |
But the logistics firm, which owns DHL, has said it will appeal the ruling to the European Court of Justice. | But the logistics firm, which owns DHL, has said it will appeal the ruling to the European Court of Justice. |
Deutsche Post boss Frank Appel said the ruling was "incomprehensible and has no basis in fact". | Deutsche Post boss Frank Appel said the ruling was "incomprehensible and has no basis in fact". |
Pension costs | Pension costs |
The Commission said that Deutsche Post benefited from highly regulated prices and subsidies designed to help it with the pension costs for civil servants. | The Commission said that Deutsche Post benefited from highly regulated prices and subsidies designed to help it with the pension costs for civil servants. |
It ruled this led to "significantly lower social contributions than its private competitors". | It ruled this led to "significantly lower social contributions than its private competitors". |
It also investigated the markets in Belgium, France and Greece. | It also investigated the markets in Belgium, France and Greece. |
Belgium was ordered to recover 417m euros of aid given to Bpost between 1992 and 2010. | Belgium was ordered to recover 417m euros of aid given to Bpost between 1992 and 2010. |
However, the markets in France and Greece were judged to be fair. | However, the markets in France and Greece were judged to be fair. |
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