Deutsche Post Faces Wider EU State-Aid Probe Over Pensions

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Deutsche Post AG, Europe’s largest mail carrier, faces an expanded state-subsidy investigation by European Union regulators over payments from the German government to cover workers’ pension costs.

Subsidies and an increase in regulated postage prices to cover pensions for workers with civil-servant status may harm rivals that may pay 10 percent to 15 percent more in contributions, the European Commission said in an e-mailed statement yesterday.

Deutsche Post called the EU allegations “baseless” and said there have been no new facts since a related 2002 decision was dismissed, Dirk Klasen, a spokesman for the Bonn, Germany- based company said by phone. Deutsche Post said yesterday that it contributed 542 million euros ($778 million) to a pension fund for the company’s civil servants in the first quarter.

The probe broadens the scope of an investigation that started in 2007 into “all public measures, such as transfers of public money and tariff income” granted to Deutsche Post and its predecessor Postdienst since 1989.