Finance for new railways is not aid

THE European Commission ruled on Wednesday that guarantees made by the Irish government to the Irish transportation board for the financing of new railway infrastructure doesn’t constitute state aid.

European Union Transport Commissioner Jacques Barrot said the construction of new transport infrastructure by a public authority isn’t subject to competition law.

The rail network is in urgent need of new investment and the guarantee will allow the transportation board to raise money with private banks to finance the needed investments, the commission said.