WebConference on postal, delivery and ecommerce economics and policy 19 May 2020 Summary

I. Role of the State/State aid: overview of measures & legal bases 1. Non-aid 2. Compensation of USO 3. Compensation of other SGEIs provided by postal operators or via postal network 4. Pension relief 5. State guarantees 6. Other measures II. Role of the State/State aid in COVID-19 times 1. Temporary Framework: liquidity measures, recapitalisation? 2. FDI screening?

2 Measures&legal bases 1/6 1 Measures not constituting State aid  : remuneration of current account deposited with Treasury (2008, 2019: no advantage); remuneration for distribution of postal saving products (2006: MEIP; 2008: Altmark 4)  Royal : 3 loans measures (2009: MEIP)  : 2 capital injections (2003, 2012: MEIP)  : 3 capital injections (2018: MEIP)  : capital injection by PostNord; VAT exemption under Article 132(1)(a) of VAT Directive (2018: not imputable to State)

3 Measures&legal bases 2/6 2 Compensation of USO - Article 106(2) TFUE 1. : 2006, 2009, 2015 (compensation fund) 2. ELTA: 2003, 2012, 2014 (compensation fund withdrawn) 3. Poste Italiane: 2002, 2008, 2012, 2015 4. bpost: 2003, 2015 5. Correos: 2018, 2020 6. Czech Post: 2018 7. Post Danmark: 2018

4 Measures&legal bases 3/6

Compensation of other SGEIs - Article 106(2) TFUE 3  AnPost: 2002 (counter network)  Posten AB: 2002 (basic cashier services)  Post Office Ltd: 2007, 2010, 2012, 2015, 2018 (post offices network and over-the-counter access to a set of services)  Poste Italiane: 2012, 2019 (press delivery); 2012 (delivery of electoral material)  ELTA: 2003, 2012 (basic banking services)  bpost: 2012, 2013 (maintenance of network, distribution of newspapers and periodicals, basic banking services, etc.)  : 2012, 2014, 2018 (territorial presence); 2014, 2019 (press delivery)  Czeck Post: 2018 (data boxes information system)  Correos: 2018 (delivery of electoral material - EA) 5 Measures&legal bases 4/6 4 Pension subsidy (legacy costs) - Article 107(3)(c) TFUE  La Poste: 2007  : 2009, 2012  bpost: 2012  : 2012, 2020  Correos: ongoing investigation

6 Measures&legal bases 5/6 5 State guarantees  Poczta Polska: 2007 (unlimited guarantee; EA, appropriate measures)  DHL: 2008 (unlimited guarantee by Land Sachsen; incompatible)  La Poste: 2010 (unlimited guarantee; no recovery)  bpost: 2012 guarantee on loans at 0.25% (incompatible)  Post Danmark: 2018 (EA, non-recoverable)  Correos: ongoing investigation

7 Measures&legal bases 6/6 6 Other measures Articles 107(2)(a) and 107(3)(d) TFEU  Poczta Polska: compensation of costs for services statutorily exempted from postage fees (2004 EA; 2008, 2010, 2011, 2013, 2015, social and cultural aid) Article 107(3)(c) and R&R Guidelines  Royal Mail Group: restructuring aid (2012) Article 107(3)(a) TFEU – Regional aid  DHL Airways GmbH in Leipzig/Halle (2004)  DHL Liepzig-halle airport (2008, training aid)  UPS Polska Sp. z o.o. (2009, 2012, creation of jobs; 2014 GBER) Training Regulation n. 68/2001

 TNT Express BELUX in Zaventem (2008) 8 Temporary Framework 1/2

Liquidity measures  Direct grants, selective tax advantages and advance payments (3.1)  Max €800,000 per undertaking  Guarantees and subsidized loans (3.2 /3.3)  Deferrals of tax and/or of social security contributions (3.9)  For undertakings particularly affected by the COVID-19 outbreak, e.g. in specific sectors, regions or of a certain size  Wage subsidies for employees to avoid lay-offs (3.10)  For undertakings particularly affected by the COVID-19 outbreak, e.g. in specific sectors, regions or of a certain size

9 Temporary Framework 2/2 Recapitalisation measures (3.11)  Equity and/or hybrid capital instruments  Eligibility: serious difficulties to maintain operations; common interest; financing on the markets unavailable at affordable terms  Appropriate remuneration for State investment + appropriate incentives to redeem the recapitalisation + exit strategy  Strict governance requirements: Remuneration of Structural/behavioural Until 75% recap. is beneficiary’s commitments if >€250M redeemed, beneficiaries management frozen at to beneficiary with SMP ≠ SMEs not to acquire fixed part on 31/12/2019 on at least 1 market >10% of competitors Cross-subsidies to Dividend, non-mandatory Engaging in aggressive integrated undertakings coupon payments, buy commercial expansion in difficulty as of back shares, other than in financed by State aid 31/12/2019 relation to the State 10 FDI screening Guidance to MS concerning investments from 3rd countries and protection of Europe’s strategic assets (25/03/2020)  COVID-19 and increased potential risk to strategic industries (“predatory buying” by foreign investors)  MS may take measures (prohibition, mitigating measures) if such acquisition or control would threat their security or public order, incl. where such threats are linked to a public health emergency  Besides screening, MS may retain golden shares in certain undertakings, with right to block or set limits to certain investments  Like other restrictions to capital movements, golden share powers must be necessary + proportionate to achieve a legitimate public policy objective  Under Article 63 TFEU, grounds of public policy, public security and public health can be relied on if there is a genuine and sufficiently

serious threat to a fundamental interest of society 11 Thank you!

Alessandra Fratini [email protected] www.fratinivergano.eu