The market pillar of the 4th Railway Package was adopted on 17 October 2016 when the Council of the EU formally adopted new rules aimed at boosting train travel in Europe. The reform will open up domestic rail passenger markets in the member states and create fairer conditions for train companies in terms of non-discriminatory access to the network.
The revised rules make it easier for new operators to enter the market and offer their services. This should result in wider choice, cheaper fares and improved quality for passengers.
Competitive tendering will become the norm for public service contracts, with some exceptions. Direct award will still be possible where it leads to better quality of service or cost efficiency. To make this work, any directly awarded contracts will include performance and quality targets, covering, for instance, the punctuality and frequency of trains.
To ensure continuous and well-functioning services, member states can limit a new operator’s right of access if the proposed new service would compromise the ‘economic equilibrium’ of an existing public service contract.
The reform also strengthens the independence and impartiality of rail infrastructure managers in order to ensure that all railway companies have equal access to tracks and stations. Member states are able to keep their current organisational structures, but safeguards are put in place to increase financial transparency and avoid conflicts of interest.
The new system will be introduced gradually. Infrastructure managers must comply with the new requirements at the latest two years after the legal act has entered into force.
On the basis of the access rules, operators will be able to launch new commercial services on 14 December 2020. Competitive bidding for public service contracts will start seven years after the legal acts are published.
Revised public service contracts regulation
Revised single European railway area directive
Regulation repealing the regulation on the normalisation of accounts
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