Daily Express

Eurostar bailout crisis: Fury at 'entirely wrong' French state aid plot - ?585m black hole

Daily Express logo Daily Express 26/03/2021 00:00:00 Ciaran McGrath
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And former Brexit Party MEP has said such a move - which he characterised as a "public bailout" would be "entirely wrong". The French Rail Association (AFRA), which brings together alternative operators, issued the warning after , which owns 55 percent of the London-Paris high-speed rail link, said needs the money to stay afloat in the wake of a dramatic drop in passenger numbers as a result of the coronavirus pandemic.

However, AFRA pointed to the fact that SNCF is simultaneously planning to invest large amounts of cash in new projects, most notably ?600million into Ouigo Espana, its new Spanish subsidiary.

Claude Steinmetz, President of AFRA, was unequivocal in a statement issued today.

He said: "Under no circumstances should the State's efforts to support an operator affected by the crisis be used to finance, even indirectly, its international development.

a man wearing a suit and tie: Emmanuel Macron © GETTYEmmanuel Macron David Bull wearing a suit and tie © GETTYDavid Bull

"The granting of aid must be accompanied by commitments on counterparts."

AFRA is demanding guarantees of "fair and non-discriminatory treatment in the allocation of aid" by ensuring no competitive advantage is given to the historical operator or any entity of its group.

Franck Tuffereau, AFRA's General Delegate, said: "All companies operating in the sector should be able to access this aid under the same conditions.

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a passenger train stopped at a bus stop: Ouigo France © GETTYOuigo France

"Otherwise, compensation should be put in place to avoid any distortion of competition."

Speaking last week, SNCF chief executive Jean-Pierre Farandou told the Financial Times Eurostar's "financial situation is going to be very difficult at end of May 2021. Eurostar is strategic, it's geopolitical".

Coincidentally, May is also when SNCF is due to launch its Ouigo Espana service, despite having issue an appeal to both the UK and French governments for a cash injection.

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a man wearing a suit and tie: Jean-Baptiste Djebbari © GETTYJean-Baptiste Djebbari a man wearing glasses and looking at the camera: Jean-Pierre Farandou © GETTYJean-Pierre Farandou

Mr Bull, now the deputy leader of the Reform Party, was deeply concerned at the idea of the UK putting any public funds into Eurostar.

He told Express.co.uk: "What people don't realise is Eurostar is privately owned company, and it's a subsidiary of SNCF, which is the French National Rail.

"So basically a private company is asking for a bailout of close to ?600million euros whilst at the same time investing a similar amount into making their business larger in Spain. And that feels entirely wrong."

As for possible investment by the UK Government, which was mooted by France's Secretary of State for Transport, Jean-Baptiste Djebbari, earlier this year, Mr Bull added: "Why on earth would the British Government bail out a French privately owned company?

diagram: Eurostar © GETTYEurostar

"The British public I think have a very good sense of fair play, and they are going to cry foul when they believe that it's not fair play, and this is a very good example of that.

"When you work hard and you pay tax, it really upsets you when you see your tax pounds in a totally ridiculous and unnecessary manner."

Speaking on Monday, Robert Oulds, director of the Bruges Group think tank, told Express.co.uk: "The French must think we were born yesterday.

"While they are trying to bully us into getting our vaccine, putting British lives at risk because they cannot sort their own health problems and vaccination programme, out themselves.

logo: Eurostar © GETTYEurostar

"French companies are trying to exploit the British taxpayer.

"What about their own moral hazard? Why is it that they couldn't control Eurostar?

"They're not prepared to take any of the costs, they will take the profits, but aren't prepared to take the cost."

Express.co.uk has contacted Eurostar offering them a chance to respond.

vendredi 26 mars 2021 02:00:00 Categories: Daily Express

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