Brussels, 11/04/2016 (Agence Europe) - In a resolution by Werner Martina (S&D, Germany) adopted on 7 April, members of the European Parliament's industry (ITRE) called on the European Commission to set up a high-level industrial dialogue on the rail supply industry, which would regularly involve the relevant Commissioners, MEPs, the Council of Ministers, member states and the trade unions, in order to deal with global competition.
“The main aim of the resolution is to highlight the strategic importance of the rail supply industry,” Werner Martina explained to this newsletter, adding “We need to build the right environment so that the European companies can secure their strong position vis-à-vis the aggressive and state-supported competitors, especially from China. If we want to achieve a shift to rail, we need a strong European rail supply industry.”
The fate reserved for China in the resolution was a subject of debate among the MEPs. Should one opt for a resolution focussing entirely on competition from China or a more general resolution? In the end, the MEPs decided on a resolution going beyond Chinese competition and calling for a boosting of European competitiveness in the face of international competition. A parliamentary source working on this question says that China is the heart of the problem, but is not the only country as stiff competition also comes from Japan.
Last year, two Chinese rail machinery companies, (CNR and CSR) merged to create the biggest railstock company in the world, China Railway Rolling Stock Corp (CRRC). Another source explained that the new company, directly controlled by the Chinese government, is twice the size of Bombardier, and CRRC is using a particularly aggressive pricing policy in Europe. The source said the Commission was doing a lot for the car industry and rail operators (such as SNCF, Deutsche Bahn) but not much to back the rail stock industry.
It is expected that the resolution will be adopted in June or July. (Original version in French by Pascal Hansens)