INFRASTRUCTURE AS A FREE LUNCH FOREVER AND FOR ALL? Lode Verkinderen Secretary General UETR Belgrade, 10th April 2014

Importance of Road Infrastructure Basis for economic development and prosperity No efficient trade without infrastructure Modal split passengers/ goods Missing links Traffic’s evolution and predictions Congestion

Historical background Motorways : lubricant for treaty principles young EU Linking cities and countries Attention for public spending secondary Private (co-)financing “free” use of motorways or toll … Many EU-countries: little expansion of network since 1980ies

Road infrastructure needs 2014 New EU MS still developing basic infrastructure 25 years underfinancing of maitenance & expansion Traffic previsions Building infrastructure = time consuming process Free = tax payers bill Public spending ever more problematic Financial crisis hits credit situation of investors No more “new” infrastructure for free

How to finance infrastructure Public Private Partnerships TEN-T co-financing (%, road?) User pays principle…

Existing taxes Vehicle excise duty (per annum/ EU minima) Time based taxes (Eurovignette) Excise duties on petrol and diesel Non-user does not pay?

User pays Only real costs for infrastructure use (old infrastructure?) No time dependent tariffs if only for trucks (no influence on congestion) Revenue : road infrastructure (no cross financing : see case CH) earmarking External costs : less polluting trucks (Euro norms) pay less, but no budget neutral approach ! External costs: noise (but what measures for hinder reduction?) Other modes and other road vehicles : when?

HVALA NA PAŽNJI !