The European Commission has approved Denmark’s plan to compensate Post Danmark A/S for legacy costs linked to 429 former civil servants affected by the discontinuation of the Universal Service Obligation in the mail sector as of 1 January 2024.
The former civil servants, employed under special terms, are entitled to three years of redundancy pay. The State aid measure will cover a maximum of around €77 million (DKK 572 million), preventing these costs from being transferred to Post Danmark’s parcels business, which continues to operate.
The Commission found the measure necessary and proportionate under EU State aid rules, as it supports the parcels sector without unduly affecting competition or trade between Member States.