Eurostar bailout will be an ‘arm-wrestle’ with French government
A top transport economist has predicted that the negotiations between the UK and French governments over a bailout for the Eurostar will be an “arm-wrestle”.
Speaking to the transport select committee today, Professor Yves Crozet of the University of Lyon said that the UK would have to give ground in order to prop up the rail link.
“If you want to keep the Eurostar, you have to give a lot of public subsidies. It is the same consequence that we have after a war”, he said.
“We will have probably arm-wrestling between the UK and France about that.
“Clearly it is not possible to stop Eurostar. We need Eurostar.”
Later select committee chair Huw Merriman called on the respective governments to set out a joint commitment to protecting the service.
“We simply cannot afford to lose Eurostar to this pandemic. The company contributes £800 million each year to the UK economy.
“Like airlines, quarantine and travel restrictions have blighted Eurostar’s access to its markets during the pandemic. Unlike airlines, Eurostar has been shut out from government loans that have offered a lifeline.
“Eurostar’s traffic has fallen by over 95 per cent; services have been stripped back to a bare minimum. It needs a joint, bespoke UK-French solution to help it through this crisis.”
Crozet’s comments come days after a group of London businesses called on the government to give the Eurostar financial support.
While UK rail franchises have been on the receiving end of nearly £10bn in support so far, nothing has yet been provided to the cross-channel link.
As a result of the pandemic, passenger numbers have fallen 95 per cent, with just two services running out of St Pancras a day.
But some have question why the UK, which sold its stake in the rail link in 2015, should have to fork out to keep it running.
It is now 55 per cent owned by the French government, with private investors controlling the rest.
Advocates of government support say that the UK is more dependent on the rail link than France.
According to London First, which coordinated the calls for support, four in five journeys made to Paris or Brussels from London are made by Eurostar.
A Department for Transport spokesperson said: “We recognise the significant financial challenges facing Eurostar as a result of Covid-19 and the unprecedented circumstances currently faced by the international travel industry.
“The government has been engaging extensively with Eurostar on a regular basis since the beginning of the outbreak. We will continue to work closely with them as we support the safe restart and recovery of international travel.”