Brussels, 21/03/2014 (Agence Europe) - The European Commission submitted guidelines on Friday 21 March in order to remedy a legal framework which has not always been entirely clear on public passenger transport services for the public authorities. Its aim is to clarify the extent to which these authorities can conclude public contracts for train, metro, tram or bus services, how these contracts are to be allocated and how public service obligations are to be compensated.
A regulation deemed opaque. The guidelines refer to Regulation 1370/2007, which has been in force since 2009, to ensure that it can be understood and applied in the same way throughout the EU. The stakeholders have told the Commission several times that the provisions are unclear, leading to differing applications of the European rules on public service contracts. “We have listened very carefully to where clarification was needed”, explained European Commissioner for Transport Siim Kallas. “These new guidelines provide this clarity and will enhance legal certainty for all public transport actors in the EU.” The guidelines are therefore not extra rules and will not bring about any extra costs, but will above all provide an interpretation of the rules in force. They also aim to bring the regulation into line with new guidelines on state aid, which are currently being updated.
Provisions concerned. The Commission's indications on public passenger transport services relate to the definition of public service obligations, the duration of contracts and the sub-contracting of these. Clarifications have also been provided on the social protection required in the event of a change of operator. An interpretation has also been provided on the conditions for allocating direct contracts or putting contracts out to tender, as well as compensation for the public service obligations. These clarifications aim to ensure that there is no distortion of competition and that the taxpayers' money is put to good use. The guidelines also cover transparency rules and transitional arrangements.
Fourth railway package. The fourth railway package, which reforms the market, includes a revision of the rules on public service contracts which comes on top of these new guidelines. The Commission states that it has sought coherence between the texts. However, as negotiations between the Council and the Parliament had not yet started, it could be that the texts are no longer in line with each other after the procedure has concluded. The Commission has undertaken to inform the stakeholders if this arises. (MD)