The European Commission launched yesterday an in-depth investigation into a possible state aid Romania has granted to its railway freight operator CFR Marfa.

The EC will analyze the state’s decision to delete the company’s debts which has offered it an unfair advantage, in breach of EU state aid rules.

In 2013, the Government deleted debts worth some EUR 360 million CFR Marfa had to other state entities, including railway infrastructure operator CFR. The goal was to privatize the company afterwards, but the attempt failed.

A state intervention can’t be considered state aid under the EU rules when it occurs under conditions that would have been accepted by a private investor. The Commission will now assess whether this is the case with the public creditors of CFR Marfa.

Unlike rail passenger transport, the freight transport market in Romania is extremely competitive. There are many private operators and some of them have gained a considerable market share following the liberalization of the market in 2007.

editor@romania-insider.com