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BERLIN (Dow Jones) The Federal Audit Office has warned against the rapid provision of corona-related special funds for Deutsche Bahn. “The immediate and complete disbursement” of the equity aid in the amount of 5 billion euros is “unjustifiable,” according to a report by the Bonn authority to the budget committee of the German Bundestag. The amount was estimated in the 2020 federal budget and recently re-estimated for the 2021 draft budget.
The report is dated November 23, but was only published today, Monday. The Court of Auditors had warned early on against preferring the state-owned company and thus distorting competition. A response from the federal government has now confirmed that an overall estimate of the corona-related losses of DB is “only roughly possible” and also “not yet confirmed by an expert”. “The available data indicate that the deterioration for 2020 is less than originally expected.”
Instead of an immediate financial injection, the auditors only recommend a step-by-step payment, or better still other measures. The DB AG must also provide concrete evidence of its losses, otherwise the funds would first have to be “qualified”, according to the report. In addition, the federal government must demand increased countermeasures in the operational and structural area from the group. In general, the report recommends industry solutions rather than one-sided help.
The railway itself estimated its losses as a result of the corona pandemic in May 2020 at 11.0 to 13.5 billion euros. The federal government then presented a “three-pillar model” to help. According to this, 50 percent of the additional costs in the rail system should be taken over, which was put at 4.1 to 5.1 billion euros. In addition, an equity increase of 80 percent of the remaining damage was planned by the federal government as owner, a total of 5.5 to 6.7 billion euros. DB AG should take out loans for additional needs. The EU Commission is still examining the planned aid.
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DJG/pso/sha
END) Dow Jones Newswires
February 15, 2021 13:18 AND ( 18:18 GMT)
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