EEC warns Germany
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• The EEC Commission has toldthe German Government that, while German plans for the development of feeder lines and integrated transport services do not necessarily run counter to the common transport policy of the EEC, grant aid must be soundly based.
The Commission states that grants should be made with regard for the profitability of proposed investment projects, to avoid distortion of transport competition. And it feels that the levels of aid (as much as 75 or even 100 per cent of the investment costs in some cases) appear to be excessive.
Before implementing its plans, says the Commission, Germany should examine their effects on competition in transport.
This warning follows EEC Commission resistance to several features of the Leber plan for expanding rail freight and restricting road freight by regulation.