The European Commission has approved, under EU State aid rules, a French scheme that will reimburse the so-called T2 surcharge payable by rail freight transport companies for certain statutory employees. The scheme applies for ten years from 1 January 2025.
The T2 contribution is intended for the financing of additional benefits specific to the statutory pension scheme for employees of public railway group SNCF. Since 1 January 2020, SNCF employees who leave the company but continue working in the railway sector can keep their pension rights from this scheme. In that case, their new employer must pay the employer's share of the T2 contribution.
The scheme is open to companies carrying out activities of rail freight transport in France, including maintenance and the performance of railway safety tasks. It will cover only the T2 social contribution for eligible employees, that is the statutory employees who were employed by the eligible beneficiaries on 1 January 2025. If an eligible worker changes job, the aid will be granted to the next employer, as long as this new employer is also a company active in the rail freight sector. The scheme has a budget of €225 million for a period of ten years.
The Commission's assessment
The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union ('TFEU'), which enables Member States to support the development of certain economic activities subject to certain conditions.
The Commission found that:
- France demonstrated that the scheme contributes to the development of rail freight sector as it liberates the companies active in that sector of a legacy cost.
- The scheme is necessary for enhancing the fluidity of recruitments of the relevant workers while keeping them within the rail freight sector.
- The measure appropriately addresses the issue of phasing out of the statutory scheme in the rail freight sector.
- The measure is proportionate as it is limited in time and in scope and covers only the exact amount of individual T2 contributions to pe paid by the beneficiary companies. The total budget of the measure is capped at €225 million.
On this basis, the Commission approved the French measure under EU State aid rules.
Background
The Commission may declare compatible with the internal market aid to facilitate the development of certain economic activities, pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union. Such aid cannot adversely affect trading conditions to an extent contrary to the common interest.
The non-confidential version of the decision will be made available under the case number SA.117491 in the State aid register on the Commissions' competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News .
