Commission approves prolongation and €200 million budget increase of German scheme to support research and development

The European Commission has approved, under EU state aid rules, Greek public funding of €442 million for the construction of the North section of the Central Greece Motorway (E65). The Commission also approved support estimated at €38 million to cover the operating and maintenance expenses of the section, in case the toll revenues are not sufficient. This will allow the completion and operation of part of the Trans-European road network, without causing undue distortions of competition. In May 2019, Greece notified the Commission of its plan to grant €442 million of public support to Kentriki Odos S.A. for the construction of the 70.5 km North section of the Central Greece Motorway (E65). Kentriki Odos S.A. is also the concessionaire of the Middle and South section of the E65 motorway.

The 180 km long Greek E65 motorway connects the Athens-Thessaloniki motorway (PATHE) with the Egnatia motorway. Furthermore, Greece notified its plans to support the operation of the North section by covering the operating and maintenance expenses in case the toll revenues of the section are not sufficient. The operating support is estimated at €38 million. The Commission assessed the measures under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which allows State aid to facilitate the development of certain economic activities or of certain economic areas.

The Commission found that: the aid will contribute to the development of the economic areas which the E65 motorway mainly serves: Central Greece, Thessaly and Western Macedonia; the support measures are necessary and proportionate for the implementation of the project. The Commission therefore concluded that the public funding granted for the construction and operation of the North section of the E65 motorway is in line with EU state aid rules.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “The construction of the North section of the Central Greece motorway will complete the Greek part of the E65, contributing to the development of the areas concerned. This decision enables Greece to support the construction of this important infrastructure, which is part of the Trans European road network.”

The full press release is available online.