The new head of the European Commission’s transport department (DG MOVE) had harsh words yesterday (15 March) for draft rules to open up Europe’s “static” rail sector, which he said have been butchered in negotiations with the European Parliament and Council.
“The original proposal of the fourth railway package had much more ambition,” said Henrik Hololei, speaking at the annual dinner of the European Rail Freight Association (ERFA), which has pushed for more competition in the sector.
Hololei took over as Director-General of DG MOVE last October, nearly three years after the Commission proposed new rules to liberalise rail markets. Since then, the proposal has been caught in the firing line of member states and big rail companies that lobbied to water down the rules.
“Now of course in the negotiations many member states who were advised by some of their incumbent rail companies have also made adjustments to this proposal,” Hololei added.
When the executive proposed the so-called fourth railway package, Hololei was chief of staff to then-European Commissioner for Transport Siim Kallas. The rules are still pending and negotiations with weary MEPs and Council are expected to finish this spring.
But Hololei and other officials with knowledge of the discussions say the talks have wiped out several of the measures proposed by the Commission to help competing rail operators enter markets.
“The fourth railway package is a work in progress. I think it’s been like that for years,” Hololei said.
Hololei slammed EU countries for protecting their large national companies and crowding out competition.
“There is an unwillingness to change,” he said.
The executive’s January 2013 proposal called for to fully open passenger train markets by 2019. One point that sparked controversy in the executive’s draft is the demand to separate managers of rail infrastructure from train service operations.
Last autumn, member states attached a number of exceptions to the executive’s plan to require public tendering on most train routes in the EU.
“I know the hopes were higher and the ambition was higher but this is the compromise and this is how far the member states are willing to go,” Hololei said.
Background
The European Commission’s recast of the first railway package in 2001 was adopted in 2012. It was designed to address the historic challenges to creating a consolidated railway market, which in the
The EU executive considers the rail sector as having too little competition, poor regulatory oversight and inadequate public and private investment.
The 2012 recast consolidates the 2001, 2004 and 2007 legislation and provides for strengthening regulatory oversight and performance of infrastructure operators. It also seeks to improve transparency in rail contracts and operations.
The Commission's 2013 proposal called for a separation of rail infrastructure managers and service operators, a full separation of passenger rail markets by 2019 and public tendering for most rail routes.
Further Reading
- European Commission: proposals for fourth railway package (January 2013)
- Council of the EU: agreed approach for fourth railway package (October 2015)