Brussels, 22/04/2014 (Agence Europe) - On Tuesday 22 April, the European Commission presented a new interpretation of the European rules (Regulation (EC) No 3577/92) on maritime cabotage. Public service contracts in maritime transport can now be for twelve years and will provide greater flexibility to operators in order to cover their investments.
The European Commissioner for Transport, Siim Kallas, explained that, “member states' authorities need clear rules on how to ensure adequate links to islands and peripheral regions that are particularly dependent on maritime transport”. The Commission has therefore updated previous interpretations (2003 and 2006) of this European rule, which are more than two decades old, in light of several decisions by the European Court of Justice (see EUROPE 11049) and the difficulties of interpretation revealed. This will provide greater legal certainty for the European authorities when awarding public service contracts, explained the Commission.
The new guidelines drawn up in consultation with the EU28 clarify matters with regard to the scope of the freedom to provide services in the maritime cabotage sector; who enjoys that freedom and which services the Regulation covers. The award procedure for public service contracts and the duration of public service contracts have also been clarified. The previous Commission interpretation set out a maximum contract period of six years. Certain operators informed the Commission that this duration was not long enough to cover the investments agreed. The new guidelines have extended this period to twelve years if this period is justified by subjective criteria, such as recovering investments made in vessels or infrastructure. Proportionality remains the Commission's main objective, which also insists that member states promote less market-intrusive instruments in order to ensure maritime requirements on their territory, particular with regard to linking up islands with their territory and the mainland.
The interpretation also includes specific provisions for Croatia, which benefits from a transition period until the end of the year for maritime cabotage. This market has been liberalised in Europe since 1999. (MD)