Brussels, 28/08/2003 (Agence Europe) - The European Commission has adopted a decision requiring Ferrovie dello Stato (FS), the Italian State-owned railway company, to implement the pledges it made to Germany train operator Georg Verkehrsorganisation (GVG). The decision finds that FS has prevented Georg Verkehrsorganisation (GVG), a small German railway operator, from providing passenger services from Germany to Milan, by refusing to enter into a so-called international grouping, by refusing to discuss terms for access to the track and by refusing to provide traction services. This is a landmark decision against abusive behaviour in passenger rail travel.
GVG has been trying to get access to the Italian railway market since 1995 to provide a twice-daily passenger service from various points in Germany via Basle to Milan. The service would reduce journey times by about an hour, mainly because it would be non-stop and timed to interconnect at Basel with Intercity trains from and to Germany. To be able to provide the service, GVG has to have access to the Swiss and Italian railway networks. It obtained the necessary trainpath in Switzerland in 1996. But the company also has to form an international grouping with an Italian railway undertaking, pursuant to Directive 91/440, and FS is the only Italian train operator currently equipped to enter into such a grouping. Furthermore, GVG needs traction services (i.e. locomotives and train crew) something which, at this stage in the European railway liberalisation process, it needs to rent and only FS is capable of providing.
The directive requires rail companies wishing to provide competing international services to sign agreements with the operator on the other side of the border. Following discussions with the Commission and in order to come to a settlement, FS has entered into an international grouping agreement with GVG and has agreed on the terms of a traction contract with the company. FS and its subsidiary RFI, which manages the Italian railway infrastructure, has promised to use best endeavours to provide GVG with train paths. FS has also undertaken to enter into international grouping agreements with any duly licensed train operator, which has concrete proposals to start an international rail service into Italy. Furthermore, FS has undertaken that, for a period of five years, it will provide traction to other railway companies for such services. Accordingly, the Commission has come to the conclusion that the infringement has been terminated and, in view of the novelty of the case and the substantial commitments offered by FS, has decided not to impose a fine. Commissioner Monti commented “All the available evidence is that the introduction of competition, if properly regulated, delivers better rail services at less cost to the taxpayer than railway companies operating in closed markets.”