JUNE 21, 2002
Deutsche Post in trouble with EU
JORDAN's major sponsor Deutsche Post is in trouble with the European Commission Competition Directorate because of what the Eurocrats say were illegal subsidies from the German government in the late 1990s. The government remains Deutsche Post's largest shareholder, with a 69% stake. The EU has just completed a three-year inquiry into the aid, which it says gave Deutsche Post an unfair advantage over its rivals as it was able to undercut prices. The company has been ordered to pay back $538m. The company says it will appeal the decision but has made a provision for a potential loss of around $800m in its 2002 budget. This is one third of its operating profits.