EU approves 1.1 bln euro compensation for Poste Italiane

The European Commission said it has approved the 1.1 billion euros compensation Italy granted Poste Italiane SpA between 2006 and 2008 to meet the costs of fulfilling its universal postal service obligations.

Universal service ensures citizens and businesses located in rural areas get a comparable service to their urban counterparts.

The state support is in line with EU rules on public service compensation because it does not over-compensate Poste Italiane for providing these services, and therefore does not allow for cross-subsidies for other activities, the Commission said.

Poste Italiane is the universal postal service provider in Italy.

Over the period 2006-2008 Poste Italiane received 1.1 billion euros compensation for providing this public service.

The European Commission said it has approved the 1.1 billion euros compensation Italy granted Poste Italiane SpA between 2006 and 2008 to meet the costs of fulfilling its universal postal service obligations.

Universal service ensures citizens and businesses located in rural areas get a comparable service to their urban counterparts.

The state support is in line with EU rules on public service compensation because it does not over-compensate Poste Italiane for providing these services, and therefore does not allow for cross-subsidies for other activities, the Commission said.

Poste Italiane is the universal postal service provider in Italy.

Over the period 2006-2008 Poste Italiane received 1.1 billion euros compensation for providing this public service.