The Spanish National Commission on Markets and Competition (CNMC) has analyzed ministerial orders determining the subsidizable costs for air and maritime transport of goods to and from the Canary Islands for 2024.

The current subsidy system covers up to 100% of transport costs for agricultural and industrial products, with the Ministry of Transport setting maximum subsidizable costs based on various factors, including route and transport mode.

This year, a new differentiation between 'capital islands' and 'non-capital islands' has been introduced to address the additional challenges faced by the latter.

While the CNMC acknowledges the justification for these subsidies due to the extra costs associated with insularity, it emphasizes the need for a well-designed framework to ensure their effectiveness and efficiency, avoiding potential market distortions.

The CNMC reiterates previous recommendations, advocating for a methodology based on the costs of efficiently managed companies rather than average costs, and calls for a critical qualitative analysis of declared costs.

Additionally, the CNMC suggests enhancing verification mechanisms for the accuracy of costs reported by operators and conducting ex post evaluations of the subsidies' impact.