The European Commission has approved Belgium’s €61 million emergency loan for the private rail freight company Lineas.
The loan, endorsed by Belgium’s federal government as part of its summer agreement, aims to address Lineas’ financial difficulties caused by a drop in demand from the steel, chemical, and automotive sectors. It is intended to cover the company’s short-term liquidity needs.
The Commission stated that the loan conditions and its temporary nature comply with EU state aid rules. It also recognised the importance of rail freight as a low-emission alternative to road transport. Belgium has pledged to submit a restructuring plan if the loan is not repaid.
Following a complaint, the Commission reviewed two previous capital injections into Lineas by the federal investment company SFPIM and others. It concluded that these measures did not qualify as state aid.
