Request for clarification:

In the Autonomous Region of Madeira (ARM) only the islands of Madeira and Porto Santo are
inhabited. Porto Santo is the second largest island of the ARM and is a severely affected by the
limitations imposed by double insularity. Its surface is only 43 km² and is inhabited by 5,483
people. By comparison, Madeira, the largest island, has 748 km² and about 260,000 inhabitants.
The main industry in Porto Santo is tourism. It is affected by seasonality with a higher influx of
tourists in late spring and summer, and depends essentially on the market of Madeira - the main
driver of the island's small and weak economy.
The daily air and sea transports to and from Madeira are made by private operators within
government public service concessions. The air transportation is contracted by the central
Portuguese Government and the ferry line by the ARM. In both situations, and in view of the
double insularity of Porto Santo, the concession contracts provide tariff reductions to the resident
population in Porto Santo, of at least 40%.
Within this background, the Regional Government intends to increase the number of visitors from
Madeira Island to Porto Santo Island. In particular, this effort will be targeted to the months with
lower tourist arrivals (October to June) with a 25€ social mobility subvention allowed to Madeira
residents per round trip between the islands of Madeira and Porto Santo, either by plane or
ferryboat.
The amount of the subvention will be adjusted so that the ticket price for Madeira’s residents is
not lower than the ticket price paid by Porto Santo residents.
This mobility benefit is comparable to that already in place in the Canary Islands for all local
residents regardless the island they come from.

Question:
Is this social subvention, that the ARM Government intends to provide, compatible with
the internal market, according to Article 1(1), point (h) and Article 51 of Commission
Regulation (EU) Nº 651/2014, of 16 June 2014?

Answer from the Commission’s services:

In line with recital 70, social aid for transport in remote reasons can indeed fall within the
scope of Article 51. It is the responsibility of Member State authorities to ensure that all
the applicable conditions and objectives of the GBER are complied with.”