EU Commission approves €853.6 million state aid for Corsica transport

In France, the European Commission recently endorsed significant public aid amounting to €853.6 million, aimed at supporting Corsica Linea and La Méridionale in their maritime transport operations. This funding is designated for providing essential passenger and freight services between Marseille and several key ports in Corsica, including Ajaccio, Bastia, Propriano, Porto-Vecchio, and L’île Rousse, over the period from 2023 to 2030. This approval came after an in-depth investigation launched in February 2024, which evaluated the compatibility of the compensation with EU State aid regulations, notably concerning the Service of General Economic Interest (SGEI) Framework. During its assessment, the Commission identified that the market alone could not fulfill the demand for towed freight between Marseille and Corsican ports. The investigation revealed inconsistencies in market offers and determined that Marseille's port could only serve as a substitute for neighboring ports for a limited time. The public service agreements in question were crafted to manage the minimum freight volumes necessary to prevent over-saturation of transport services, ensuring a steady flow of goods while catering to user requirements. The French authorities provided comprehensive historical and projected traffic data to support their case. The Commission recognized that without this financial aid, the public transport services would likely be compromised, undermining both service efficiency and user accessibility. The measures were deemed crucial in maintaining reliable maritime transport between France and Corsica, which has implications for both economic stability and regional accessibility. Ultimately, the EU Commission concluded that the planned aid aligns with European Union regulations, thus enabling the French government to proceed with funding Corsica Linea and La Méridionale. This outcome emphasizes the role of public service compensation in addressing market failures where commercial interests alone do not meet the transportation needs of a region, ensuring continuity in vital maritime connections for years to come.