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Saturday, February 24, 2024
Courthouse News Service
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EU Approves $942M Post Office Bailout in Britain

(CN) - Regulators in the EU have approved the British government's plans for a three-year, $942 million bailout of its postal service, the European Commission said Thursday.

Earlier this year, the United Kingdom notified regulators of its plans to give Post Office Ltd. the money in order to keep carrying out a wide range of public services. These include handling social benefits payments, passport and vehicle license applications, public utility payments, basic bank and cash facilities and mail.

The commission said it approved the bailout because it will be limited to the additional costs Post Office Ltd. faces to carry out its public service mission.

"Today's decision will make sure that those U.K. citizens who live in more remote areas will also have access to a post office and the services it provides," said competition policy commissioner Margrethe Vestager. "EU state aid rules enable member states to fund services of general public interest, and provide a framework to ensure that there is no overcompensation of the service provider."

The bailout will begin next month and run through March 2018.

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