EU gives green light to UK state aid to keep open its network of Post Offices - La Treizième Étoile: A blog on EU politics
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EU gives green light to UK state aid to keep open its network of Post Offices

Wednesday, 23 March 2011
Minions Post Office and village shop in Cornwall, UK (Photo: cornwall365.co.uk)The European Commission has today given the green light, under EU state aid rules, for the UK government to allocate £180 million (€212 million) of public assistance to continue funding the network of post offices and keep open loss-making post offices such as those in rural areas across the country.

The aid will be valid for one year starting from 1st April 2011, and the Commission has also cleared the British government to continue loan facilities to fund the provision of cash services at post office counters.

In a statement concluding their investigation, the Commission concluded that the aid is compatible with EU rules because it does not overcompensate the net costs of the important public service tasks entrusted to Post Office Ltd. and so does not give the Post Office Ltd any unfair competitive advantage over competitors.

Joaquín Almunia, a Vice-President of the European Commission and the Commissioner responsible for competition policy, said: "the aid will enable the UK post office network to continue performing its fundamental social and economic role and important public service tasks, without unduly distorting competition".

Post Office Ltd is a wholly owned subsidiary of Royal Mail Group Ltd and currently operates a nationwide network of around 12,500 post office branches.



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3 Comment(s):
Anonymous Dan brown said...
The EU lets the UK governmnet spend its Money how it wants, wow how kind of them

Blogger Andrew said...
Checking to make ensure this money as state aid doesn't unjustly impact upon competition to provide the service is perfectly reasonable. After all, this procedure is designed to stop monopolies in any field of business and so helps to ensure European Union consumers have choice and get value for money - which surely even a hardened eurosceptic can agree is good right?

Anonymous Ian said...
"After all, this procedure is designed to stop monopolies in any field of business and so helps to ensure European Union consumers have choice and get value for money"

That may sound great for the consumer but the real problem here is that the UK is no longer the sovereign nation it once was. It is now subjected to the EU. It cannot act in the best interest of its citizens who have elected representatives to do so since the EU is the real boss.

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