News / DB Cargo's 'financial umbilical cord' set to be cut with EC ban on subsidies

Photo: DB Cargo

German state-owned Deutsche Bahn may be forced to end its financial support for its deteriorating freight operation, DB Cargo, as the European Commission is expected to prohibit such subsidies from 1 January.

Citing sources in the German railfreight sector, newspaper Süddeutsche Zeitung suggested the loss-making freight operation’s “financial umbilical cord is being cut off”.

The move follows years of allegations that its parent company’s support had “distorted the market”.

An EC spokesperson told Reuters an ...