The EU Commission concludes that State aid in the Italian postal service market is compatible with Article 106 TFEU (Poste Italiane)

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation*Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. In the period 2017-2019, the Italian postal service, Poste Italiane [PI], was obliged to reduce the tariffs it applied to items mailed by publishers and non-profit organizations. At the same time, it was compensated for the forgone revenue [the difference between the normal tariff and the reduced tariff] from the handling of items such as books, newspapers,