Proposed changes will make it easier for
member states to support rail and other low-carbon transport modes by reducing
EC scrutiny on financial support.
THE European Commission has commenced a
public consultation on a proposed revision to the 2008 Guidance on State Aid
for Railway Undertakings, which the EC says it hope will make it easier for member
states to support less polluting and more sustainable transport modes.
The guidelines set out the conditions under
which aid to railway companies may be considered compatible with the internal
market and state aid rules. The EC says state aid can help to overcome the
long-standing lack of interoperability and the need for digitalisation to
encourage the development of cross-border services and improve rail’s overall
competitiveness, reduce emissions and facilitate modal shift.
An evaluation of the current guidelines by
the EC found that the guidelines have made an important contribution to
encouraging modal shift to rail and to promote interoperability. However, the
EC says adjustments are necessary to reflect the latest market and regulatory
developments and to enable the sector to embrace a green and digital transition
in line with the objectives of the EU Green Deal.
The EC’s executive vice-president, Ms
Margrethe Vestager, who is in charge of competition policy, says updating the
guidelines is “a big step towards decarbonising Europe’s transport sector and
making rail more attractive, while limiting the competition distortions.”
The proposed revision will consider:
simplifying the rules on aid for
coordination of transport that support the modal shift to more sustainable
transport solutions
extending the scope of the Railway
Guidelines, in particular to include all relevant transport operators in the
intermodal chain, which contribute to the modal shift of freight from road to
less polluting and more sustainable transport solutions
removing barriers to market entry or
expansion of new market players, in particular as regards access to suitable
rolling stock and vessels
ensuring the modernisation of fleets and
network interoperability
contributing to avoid cross-subsidisation
between the commercial activities and those subject to public service
obligations of vertically-integrated railway companies.
assessing the need for rules on public
transport services in all areas of rail transport that were not yet covered by
the current guidelines, in particular for freight services, and
assessing the need for adjusted rescue and
restructuring rules applicable to railway undertakings.
Responses to the questionnaire posted on
the Commission’s Better Regulation Portal are possible up to March 16 2022.
Adoption of the new guidelines is expected by the end of 2023.
The revisions are closely linked with an initiative launched on October 1 that would allow the EC to adopt a new block exemption regulation for railways, inland waterway, and intermodal transport, and to facilitate the granting of aid to support less polluting modes without EC scrutiny. The commission will submit a proposal to the European Council at the beginning of 2022.