Strasbourg, 15/11/2001 (Agence Europe) - The European Parliament adopted in first reading its position on the regulation that opens the public transport markets up to competition. With the adoption, on Tuesday, by 317 votes to 224 and 7 abstentions, of the report by Erik Meijer (GUE, NL), the Parliament considerably amended the Commission's initial proposal, following the lines of the EP left wing in a way more favourable to autonomy of local government. Commissioner de Palacio had said during the debates that, if the EP adopted the amendments that were finally taken on board, the meaning of the proposal would be "seriously brought into question and the whole of the regulation would be reviewed downwards". The rapporteur hoped that the Parliament's position would send a political signal to the Council, where the issue is bogged down, mainly because of strong resistance on the French side.
Speaking on behalf of subsidiarity, the EP adopted an amendment that leaves the municipal authorities the choice of entrusting public transport to private companies after a call for tenders or of operating as a public service, while the Commission hoped to impose tendering procedures for all public transport markets.
This point caused many voices to be heard during the debates, and a great deal from the Socialist or GUE group which, like the rapporteur, felt that the Commission had gone beyond its authority in proposing to impose a means of local public transport management. Helmut Markov (GUE, Germany), for example, said it is fundamental for the local authorities, the very essence of democracy, to be able to decide on how markets are to be awarded. French national Alain Esclopé, from the Group of a Europe of Democracies and Diversities, felt that "freedom of administration is being sacrificed on the altar of Community liberalism, with a technocratic and dogmatic response". Most EPP MEPs had, on the other hand, called on Parliament to reject this amendment, considering, like Georg Jarzembowski, that the optional system was not the right choice for ensuring quality transport at the best price, or, like Ingo Schmitt, that it was simply a "disaster", as there would not be competition between the service providers.
With the adoption of the amendments proposed notably by German SPD member Wilhelm Piecyk, the Parliament also noted the market value beyond which a call for tenders would be necessary, thus eliminating the small municipalities from the scope of the text. These values would be: EUR 1 million in general (instead of EUR 400,000 proposed by the Commission) and EUR 3 million for markets including several services in a single contract (instead of EUR 800,000).
The Parliament extended the duration of contracts to eight years for bus transport and to fifteen years for rail (as opposed to five years proposed by the Commission), and more clearly excluded long distance rail travel from the scope of the regulation. This last question is to be on the agenda in the context of the "second rail package" that the Commission is to present in the near future. The EP also specified the social and quality criteria to be taken into account during tendering procedures.