Deutsche Post unwilling to reduce postage charges

Deutsche Post, the German postal service operator, is unwilling to reduce postage charges as a means of avoiding a possible repayment of 572m euros to the German state. The EU commission has demanded that the company repay the amount, as it classifies the company’s financing of its parcel service with income from its letter service as state subsidising.

Deutsche Post reports that it plans to set aside 850m euros in reserves in view of the EU’s claims. The amount demanded is thought to amount to around 33 per cent of the company’s annual profit.

Abstracted from Financial Times Deutschland