The First Railway Package aims to ensure the integrity and attractiveness of the European railway sector compared to other modes of transport. However, the first reform has proved inefficient in meeting the objective established by the White Paper of Transports, which was to improve the situation of railways and to reinforce the modal share of railway transport in Europe.
The debate in the European Parliament on the resolution adopted on June 11, 2010 related to the implementation of the first railway package has brought to light the fact that one of the factors that cause the stagnation of the sector is the member states’ refuse of wisely implementing the first package and of meeting the objectives established by this reform. Hence, the European Commission has proposed the reformulation of the three Directives which form the First Railway package and the implementation of a Directive aimed at establishing a Single European Railway Area.
Therefore, on January 25, 2011, the Committee for Transport and Tourism (TRAN) of the European Parliament debated the establishment of the single railway area for the first time. Apart from systematizing the existing legislation, the Commission plans to balance railway infrastructure financing and charging and to improve competition conditions and market supervision.
During the debate, Debora Serracchiani, Rapporteur of the TRAN Committee, has presented a series of aspects to be approached when the establishment of the legislative framework for the Single European Railway Area will be decided.
Rapporteur Serracchiani presented her overall approach in a working document. In her view, it is necessary to reinforce the national regulatory bodies and to set up a European Regulatory Body. Other important aspects are strengthening financial investments in the rail sector, in particular in rail infrastructure; the internalisation of external costs caused by noise and other negative effects in line with the Eurovignette proposal for road transport and the financial discount as an incentive for using ERTMS equipment; unbundling in the area of rail-related services and open access to these services, and the unbundling between the infrastructure manager and service operator. Several questions related to specific elements insufficiently approached in the revision of the First Railway Package have been pointed out during the Parliament’s debate. These elements are, however, crucial in establishing a real single European railway area: independent infrastructure managers, lack of resources and lack of an authority for regulatory bodies and infrastructure charging.
What goes wrong?
In its recent resolution, the Parliament expresses its concern about the lack of an authority and of resources for regulatory bodies. Consequently, the Commission proposes the reinforcement of their role and competences. Also, the cooperation between bodies is reinforced going beyond the mere present exchange of information. The Commission plans to force regulatory bodies to cooperate, especially in the case of complaints about international routes. However, the Commission doesn’t come up with an European integrated survey system similar to those located at the centre of other industrial networks recently opened to competition, such as energy or communications. Enhancing regulatory control is a first absolutely necessary reform in the railway sector.
The Parliament has often criticised member states’ lack of investment and financing of the railway systems, despite specific provisions in Directive 2001/12 on the financing of infrastructure and the management of railway debts. The Commission has inserted some new provisions to improve financing of railway infrastructure. Among them, the publication of five-year strategies for the development of national infrastructure was made mandatory.
These strategies should meet future mobility needs and ensure sustainable financing of the rail system. Business plans prepared by infrastructure managers, on the basis of consultation with all market players, have to respect this new framework. Obligations reinforcing the transparency of member states’ and infrastructure managers’ commitments are also strengthened, such as the publication of the charging framework. These provisions are a progress for transparency, and so are the obligations to be respected by member states.
The Commission proposes to make mandatory the contractual agreements between the infrastructure manager and the public authorities to secure an alternative source of infrastructure financing besides the charges. The duration of these agreements are extended from three to at least five years, for example through the inclusion of performance indicators in the contractual agreement. This could be a strong incentive to make good use of the network, provided the targets defined are ambitious enough.
These measures are a step towards the creation of a sound financial architecture, but the question remains whether they will be sufficient in the context of rarefied member states’ resources. Unfortunately, the foundation of infrastructure funding remains fragile.
Share on:
