Commission greenlights compensation of up to EUR 77 million to Post Danmark for legacy costs of dismissal of former civil servants
The Commission has approved Denmark’s compensation to Post Danmark A/S for legacy costs linked to the dismissal of 429 former civil servants employed under special contractual terms following the discontinuation of the Universal Service Obligation in the mail sector as of 1 January 2024. The measure aims to prevent the financial burden of these redundancy costs from being transferred to Post Danmark’s parcels business, which will continue operating in a competitive market.
Under the scheme, Post Danmark will receive compensation of up to approximately EUR 77 million (DKK 572 million), corresponding to the additional redundancy costs arising from the former civil servants’ entitlements.
The Commission assessed the measure under Article 107(3)(c) TFEU and concluded that it is necessary, appropriate and proportionate, with limited effects on competition and trade, and therefore compatible with EU State aid rules.
For more information, see the Commission’s PR.