France Left Fuming After UK Rebuffs Eurostar Plea For Financial Aid

France left fuming after UK SNUBS Eurostar begging plea. image: Eurostar

France Left Fuming After UK Rebuffs Eurostar Plea For Financial Aid.

French politicians have expressed their anger after the UK rebuffed a request by Eurostar for funding to help keep it’s operations afloat.

The UK Government had been asked to play a greater role to guarantee Eurostar’s long-term future following the increasing uncertainty for international travel caused by the pandemic. However, ministers said Eurostar’s shareholders must “fully exhaust all options” to protect its future.

The cross-Channel rail operator said it has reached a £250m – €290.82 financing agreement with its shareholders and banks, the deal included French state rail company SNCF- the company’s majority shareholder.

The UK sold its Eurostar stake to private companies for £757m – €880.60m in 2015, and the Government has so far resisted pressure to contribute to the bailout.

The rescue package announced last month consisted of £150m – €174.49m of loans guaranteed by shareholders, £50m – €58.16m of additional equity from shareholders, and the restructuring of £50m – €58.16m of existing loan facilities.

David Bull, now deputy leader of the Reform Party, was deeply concerned at the idea of the UK putting any public funds into Eurostar. He said on March 26, “What people don’t realise is Eurostar is a privately owned company, and it’s a subsidiary of SNCF, which is the French National Rail.

“So basically a private company is asking for a bailout of close to €600million euros whilst at the same time investing a similar amount into making their business larger in Spain. And that feels entirely wrong.”

When asked about a possible investment by the UK Government, mooted by France’s Secretary of State for Transport, Jean-Baptiste Djebbari, earlier this year, Mr Bull added: “Why on earth would the British Government bail out a French privately owned company?

Thank you for taking the time to read this article, please remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories.


FacebookTwitterRedditWhatsAppTelegramLinkedInEmailCopy Link
Go Back
Written by

Ron Howells

Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!. Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.


    Leave a comment

    Your email address will not be published.