Court Overturns Ruling Germany Must Claw Back Deutsche Post Cash
July 14 2016 - 5:50AM
Dow Jones News
BRUSSELS—The European Union's second-highest court on Thursday
overturned a 2012 decision by the European Commission ordering
Germany to recover up to €1 billion ($1.1 billion) from Deutsche
Post AG in subsidies it paid for postal workers' pensions.
The court overturned a 2012 decision by the European
Commission—the European Union's executive arm—that the public
financing of pensions at Deutsche Post was in breach of EU law
since it constituted state aid.
The commission at the time said the amounts recoverable were
between €500 million and €1 billion.
The Luxembourg-based EU General Court said that the commission
failed to show that the subsidies presented a real economic
advantage for Deutsche Post over its competitors.
"By today's judgment, the Court allows Germany's action and thus
annuls the Commission's decision insofar as it relates to the
pension-related subsidies," the court said in a press release.
Deutsche Post is Germany's main mail and parcel company.
The decision of the General Court can be appealed. There was no
immediate comment from the Commission on whether they would
challenge the ruling.
Write to Laurence Norman at laurence.norman@wsj.com and Viktoria
Dendrinou at viktoria.dendrinou@wsj.com
(END) Dow Jones Newswires
July 14, 2016 05:35 ET (09:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Deutsche Post (PK) (USOTC:DPSGY)
Historical Stock Chart
From May 2024 to Jun 2024
Deutsche Post (PK) (USOTC:DPSGY)
Historical Stock Chart
From Jun 2023 to Jun 2024