Brussels, 19/09/2007 (Agence Europe) - On Tuesday 18 September, the Council adopted, without debate, a regulation on public passenger transport services by rail and by road. This regulation, which will come into effect two years after its publication in the Official Journal (OJ) of the EU, replaces the rules that have been in force since 1969 (it repeals directive 1191/69) and liberalises passenger land transport services, while retaining their nature as services of general interest. Member states will not be required, however, to apply the regulation fully until after a ten-year transition period, during which time current provisions will continue to be applicable. Five years after the text comes into effect, member states will submit a progress report to the Commission.
Under this regulation, the authorities responsible for organising public passenger transport services will be able to freely choose the operator with whom they conclude public service contracts, and must ensure that the operator does not suffer any financial loss. These contracts may grant exclusive rights and/or compensation to operators for services supplied. The contracts may be awarded directly to an internal operator (and, therefore, concluded without the need for a call for tenders), or to an external operator following competitive tendering (see EUROPE 9208). Under the terms of the agreement reached between the European Parliament and the Council in May (see EUROPE 9425), the thresholds allowing small and medium-sized enterprises to be directly awarded contracts have been re-defined. It will be possible to award contracts, with an average annual value not exceeding €2 million (a sum which equates to the provision of annual transport service of 600,000 km.), to companies with no more than 23 vehicles. The EP transport committee originally proposed a threshold of €3 million (equivalent to one million kilometres) while the Council wanted €1.7 million (500,000 km.) (see EUROPE 9398). As a general rule, contracts must not exceed 15 years. For heavy rail, coach and bus transport, directly awarded contracts must not exceed 10 years (this may be extended on some circumstances). At the request of Parliament, the regulation will also apply to public passenger transport by inland waterways and national sea waters. (aby)