Luxembourg, 08/10/2015 (Agence Europe) - Most EU transport ministers described the agreement on the political pillar of the 4th rail package reached by the Transport Council on Thursday 8 October as a fair balance between the need to open up national markets to competition and taking account of national particularities. It was, however, a balance achieved at the cost of numerous derogations.
The political pillar of the legislative package contains two elements: - governance; - opening markets up to competition and the public service obligation. On the second point, competitive tendering should be the main rule for awarding public service contracts, indicated the Luxembourg minister, François Bausch, the president in office of the Council. “However, a number of exceptions to this rule will allow public service contracts to be awarded directly”. This addresses concerns that smaller markets are not adversely affected and that there is continuity of service, he said.
Few changes were brought to the 1 October text, a European source indicated (see EUROPE 11400). Two points were raised, however. The first related to a clarification from Spain on an exemption request for the Levant corridor (Region of Murcia), which has been open to competition since the end of September to ensure that there is no conflict with future European provisions. The second point related to a clarification between the United Kingdom and France on the bi-national management of Eurotunnel following the dispute between the UK and French competition authorities over the take-over of the company MyFerryLink. In future, a source close to the matter said, in the event of disagreement between two national competition authorities over the management of bi-national infrastructure, the national government will be able to demand that they reach a compromise.
France said the text was “balanced and coherent”. Opening up to competition will begin from 2020 for national commercial lines, especially the TGV lines, “in full compliance with the national social framework”, it said. The new regime for awarding public service contracts for regional lines (TER and TET) will come into effect from 2026. After that date, authorities will be able to choose between directly awarding contracts or putting them out to tender.
When asked by EUROPE if this was no more than a kind of regional exemption to European legislation, French Secretary of State Alain Vidalies disagreed with that assessment, stressing the “possibility of choosing”. It will be for national and regional regulators to determine how procedures for the award of contracts operate: by tender or by direct award. “It was not a Franco-French provision”, Vidalies stated, since it takes account of requests for exemption made by smaller member states. He said that the objective was to avoid a situation where France would be the only country open to competition. Network operation contracts awarded before 2026 will be able to continue after that date, he added. Another French source somewhat tempered the French government's enthusiasm, regretting that no mention had been made of certification for fixed stock.
This agreement means that inter-institutional negotiations between the Council and the Parliament can begin with a view to swift definitive adoption of the legislative package. The technical pillar was adopted in July (see EUROPE 11347). (Original version in French by Pascal Hansens)