European Commission clears public transport subsidies

Government subsidises to the public transport operators are in line with EU rules, the European Commission has ruled.

After examining a complaint filed by the Unscheduled Bus Services claiming discrimination in the granting of subsidies, the Commission said the compensation given by the government in exchange for the public service obligations it imposes on the companies belonging to the Public Transport Association is based on the criteria laid down by the European Court of Justice. "Instead of signing public service contracts, Malta had unilaterally imposed public service obligations on the bus operators of the Public Transport Association.

"In exchange, it pays the companies public service compensation," the Commission said.

The Commission that although this amounts to state aid, the payments comply with the EU rules on aid in the form of compensation for public service obligations.

"On the other hand, the Commission is not competent to express an opinion on the subsidies paid to some transport companies to replace the vehicles in their fleet and install an electronic ticketing system, because this was granted before Malta joined the EU," the Commission said in a statement.