In the dispute between the city of Giessen, Stadtwerke Giessen (SWG) and the supra-regional local transport provider Abellio and its Hessian subsidiary, Verkehrsgesellschaft Mittelhessen (VM), based in Limburg, the European Commission has now followed the opinion of the city of Giessen and SWG. "We are deeply satisfied with this decision, as it confirms our position on all important points," said SWG CEO Manfred Siekmann when the decision was announced on Tuesday 16 February. VM, a competitor for the local transport concessions in Giessen, had previously lodged a complaint with the EU Commission against the alleged financial support provided by the city of Giessen for the local transport division of Stadtwerke Giessen. However, the European Commission has now expressly stated that there are no state aid concerns and has officially closed the state aid investigation.
The decision also became known through information sent by the Bavarian Ministry of Transport to a Bavarian municipal utility that was also affected. The Federal Ministry of Transport, Building and Urban Affairs confirmed the discontinuation of the proceedings against the city of Giessen and Stadtwerke Giessen AG yesterday in response to an enquiry from SWG.
Landmark decision
"Our commitment to Giessen and the people who live there is further underpinned by the discontinuation of the state aid proceedings," Manfred Siekmann continued. He sees this citizen-friendly policy confirmed for the future by the current decision from Brussels. The view of the city and SWG has now also gained significant legal ground with regard to the other ongoing proceedings concerning Giessen's local transport system.