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EU To Review Royal Mail Pension Aid

The pension aid being provided by the U.K. government to Royal Mail Group is being scrutinized by European Union regulators.

The pension aid being provided by the U.K. government to Royal Mail Group is being scrutinized by European Union (EU) regulators, Bloomberg reports. The U.K. government intends taking charge of Royal Mail’s $13.7 billion pension liability from March 2012.

In order to prohibit undue advantages to Royal Mail, EU regulators can stop payments which provide undue advantage to the group over other competing postal operators. The European Commission believes Royal Mail may not be making sufficient efforts to restructure costs and may not be planning “adequate measures” to compensate for the harm to competition caused by the state subsidy.

Click here for the story from Bloomberg.

Click here for additional coverage from Reuters.

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