"State aid and EU funding - Are they compatible?” "The case of transport infrastructure" June 2018 Herald RUIJTERS, Director Directorate on Investment, Innovative and Sustainable Transport DG Mobility and Transport European Commission

Needs for public intervention Investment needs (2021-2030): EUR 500 billion for the TEN-T core network and EUR 1500 billion for overall transport investments. Additional investment needed to accelerate the transition to smart and low-emission mobility, notably in urban areas. Transport sector is characterised by a systemic market failure and a high level of positive externalities which cannot be monetized, without public intervention, the TEN-T policy objectives would not be achieved.

CEF Grants The CEF Regulation sets out the rules for granting EU financial support to TEN-T priority Projects of common interest. CEF is only supporting infrastructure. 70% goes to railway infrastructure. CEF funding does not constitute State aid since it is a programme under direct management by the Commission. The co-financing support provided by Member States may involve State aid. Most assets financed by CEF, such as rail infrastructure, are not subject to State aid rules.

CEF Financial Instruments CEF and the EFSI regulations significant increase in the use of financial instruments to attract private finance to transport infrastructures. EU financial instruments shall be established on the basis of an ex ante evaluation, and will ensure non-distortion of competition in the internal market and consistency with State aid rules. The Commission ensures consistency of the Debt Instrument under the CEF with applicable Union law, in particular and where relevant State aid rules.