Brussels, 03/12/2014 (Agence Europe) - The unravelling of the major railway reform sought by the European Commission is well and truly underway, in light of the Italian presidency's progress report on the political pillar in the 4th railway package, which was the subject of heated debate during the Transport Council on Tuesday 2 December. Its presentation somewhat eclipsed the first agreement reached within this pillar on standardising railway company accounts.
The progress report therefore focuses on aspects relating to railway governance and the allocation of public service contracts in the 4th railway package. The Italian presidency has formulated different recommendations for continuing with this under the Latvian presidency, which largely waters down the European Commission's liberal doctrine. After having consulted with the European delegations, it now appears more appropriate to proceed in a gradual way towards the opening up of the domestic railway passenger market. In the progress report, the issue of a longer transition period is posed instead of opening up in 2019 as sought by the European Commission. Integrated or separate railway bodies will also be considered on an equal basis and it will be left up to the member states themselves to choose the most appropriate model, as long as the rules on fair competition are established for integrated structures. There will also be greater flexibility in the unbundling of infrastructure management and not just functions considered “essential”. The possibility of bringing together profitable and less profitable railway lines into the same contract as a means of guaranteeing economic balance was also mentioned. In the context of allocating public service contracts, “if the principle of calls for tender” is guaranteed, exemptions have already been raised when market size, emergency situations or performance targets are involved.
Many delegations welcomed the Italian presidency's progress report, which said that on this basis an agreement on the political chapter could be reached within the trio of presidencies (Italian, Latvian and Luxembourg in 2015). During the exchange of views, many countries appealed for flexibility and demanded that the small size of their respective markets be taken into account. Several delegations also insisted that the technical pillar (which is already the subject of a general approach) should not be taken hostage during the political negotiations. The German delegation was being watched very closely in the context of this dossier and said that it understood that many countries had had difficulties with the swift and comprehensive opening up of local transport markets and appealed for a transition period to be established, as well as for exceptions to be allowed when contracts are awarded.
During the Council, the delegations did, however, approve an agreement on standardising accounts, which effectively characterises the revision of an obsolete regulation within the technical pillar. The regulation, which focused on compensation paid by railway companies for damages resulting from accidents at work, pensions and level crossings, will be replaced by a specific fund in June 2015. (MD)