STATE SUBSIDIES * Europe - EC launches two new probes into

A sizeable proportion of the European transport market has long been closely aligned with the state sector and despite several decades of liberalisation and deregulation, that situation shows few signs of changing

Strasbourg,France -Transport Intelligence (UK) -17 July 2008: -- ... In fact in recent years, the state-controlled element of the market has actually increased, with aggressive moves by companies such as Deutsche Bahn and French railways (SNCF). DHL, Schenker, Geodis, DPD and GLS, as well as numerous airlines, are partly or wholly nationalised... Ownership by state organisations carries with it a risk, or at the very least the perception of risk, that public money can be used to create an unfair advantage over companies in the private sector... As the transport market in Europe gets even more competitive due to spiralling fuel costs, the issue of state subsidies will become increasingly controversial... Governments may feel under political pressure to bail out the largest transport providers should jobs become threatened. However, this will discriminate against the small and medium sized private operators which are already feeling real hardship and which account for the vast proportion of the industry...