1. Directorate-General for Energy and Transport 07/11/2003 1 The new European regulatory framework for railways Catherine PRUDHOMME “Railway Transport and Interoperability” Unit European Commission

2. Directorate-General for Energy and Transport 07/11/2003 2 1 - European railways in figures 2 - EU legislation in force 3 - EU legislation under examination 4 - Further proposals under preparation 5 - State of play of the reform 6 - Conclusions Summary

3. Directorate-General for Energy and Transport 07/11/2003 3 Rail Passenger Traffic Source: Prognos + European Transport Report 2002 (billion p.km) EU(15) ?

4. Directorate-General for Energy and Transport 07/11/2003 4 CEECEU (15) Source: Prognos, European Transport Report 2002 Market Shares of Passenger Transport (in %) Rail Passenger Traffic

5. Directorate-General for Energy and Transport 07/11/2003 5 Rail Passenger Traffic: trends High speed train Conv. railCar Plane

6. Directorate-General for Energy and Transport 07/11/2003 6 Rail Freight Traffic Source: Prognos + European Transport Report 2002 (billion tkm) EU 15 ?

7. Directorate-General for Energy and Transport 07/11/2003 7 Market Shares of Freight Transport (in %) CEEC EU (15) Source: Prognos, European Transport Report 2002

8. Directorate-General for Energy and Transport 07/11/2003 8 Nbr of Fatalities Railway passengers Sources: UIC; National Statistics EU 15 Rail Safety

9. Directorate-General for Energy and Transport 07/11/2003 9 Fatalities Railway crossings (EU 15) Sources: UIC; National Statistics Rail Safety

10. Directorate-General for Energy and Transport 07/11/2003 10 Staff employed in the railway sector (EU 15)

11. Directorate-General for Energy and Transport 07/11/2003 11 State aids awarded to the Railway Sector MEUR Financing

12. Directorate-General for Energy and Transport 07/11/2003 12 MEUR State aids awarded to the Railway Sector Financing

13. Directorate-General for Energy and Transport 07/11/2003 13 Aims of the European Transport Policy  Optimise the use of existing infrastructure  Rebalancing the use of modes in favour of environmental friendly modes : rail, inland waterways, shortsea shipping  Fair and efficient pricing for infrastructures use  Users first

14. Directorate-General for Energy and Transport 07/11/2003 14 To adapt railways to the European dimension A major objective of the European Railway Policy

15. Directorate-General for Energy and Transport 07/11/2003 15 A major objective of the European Railway Policy « Creation of an integrated European railway area to allow cross border services under a single responsibility in order to guarantee the quality of services to the customer »

16. Directorate-General for Energy and Transport 07/11/2003 16 Eurobarometer - Spring 2003 - EU 15 “If safety standards are met, competition is the best way to make the railways more efficient.” Tend to agree71.5 % Tend to disagree12.1 % No opinion16.4 %

17. Directorate-General for Energy and Transport 07/11/2003 17 Main actions undertaken at European level A.Decided 1. To ensure fair and non discriminatory access to the infrastructure  Separation of essential functions i.e. allocation of capacity and charging  Open access to infra and services for international freight services  from 15 March 2003 on Transeuropean Rail Freight Network (TERFN)  from 15 March 2008 on the whole network  Charging principle of social marginal costs (with possible mark-ups)  National regulatory body to survey functioning of the market and arbitrate conflicts between infra-manager and railway undertaking

18. Directorate-General for Energy and Transport 07/11/2003 18 v A new geography for the Railway Industry IM RU RB Infrastructure Manager Infrastructure Manager Regulatory Body Regulatory Body Railway Undertaking Railway Undertaking Main actions undertaken at European level

19. Directorate-General for Energy and Transport 07/11/2003 19 NETWORK STATEMENT Charging Priority rules (in case of congestion) Allocation process Applicants Infrastructure managers Regulatory bodies Main actions undertaken at European level v Current regulatory framework for rail (Directive 2001/12, 2001/13 2001/14)

20. Directorate-General for Energy and Transport 07/11/2003 20 A.Decided 2.To ensure interoperability of the network  High Speed (Dir. 96/48)  Trans-European Network for High Speed rail  Adoption of technical specifications for interoperability (TSI) for the whole system (plus European standards) In force since 30 Nov. 2002  ERTMS deployment and migration strategy to be prepared by each Member State Main actions undertaken at European level

21. Directorate-General for Energy and Transport 07/11/2003 21  Conventional Rail (Dir. 2001/16)  Applicable to TEN as identified (i.e. also TERFN)  Mandate to AEIF in June 2001 for TSI in 2004 on key items for freight traffic  New mandates to AEIF in Sept. 2002 Main actions undertaken at European level

22. Directorate-General for Energy and Transport 07/11/2003 22 Interoperability related activities Programming mandates and TSI development

23. Directorate-General for Energy and Transport 07/11/2003 23 EUROPEAN STANDARDS Technical Specifications for Interoperability TSI DIRECTIVE The three-level system Essential requirements (Annex III) Subsystems (Annex II) Interoperability Constituents Main actions undertaken at European level

24. Directorate-General for Energy and Transport 07/11/2003 24 B.Broad agreement on the second package To be finally decided before end 2003 by Council and Parliament 1.Open access for international freight services on the whole network from 2006 and national services from 2008 (Council/EP conciliation on this) 2.Extension of interoperability requirement to the whole network (under conditions): accepted 3.Accession of the Community to OTIF: accepted Main actions undertaken at European level

25. Directorate-General for Energy and Transport 07/11/2003 25 4.Directive on railway safety  Creation of national safety authority  Delivery of safety certificate  Common indicators, methods and targets  Creation of independent investigation bodies for accidents 5.Creation of an European Railway Agency (ERA) from 2004  To prepare Technical Specifications for Interoperability with representatives of the sector  To prepare Common Safety Methods and Targets  To advise Commission and Member States  100 people (+ 15 Mio € a year) Main actions undertaken at European level

26. Directorate-General for Energy and Transport 07/11/2003 26 C.To be proposed in 2003 Subject to decisions of the Commission 1.Access to the infrastructure for international passenger services (requested by EP for 2006). Issues to consider:  High speed rail services  Occasional services  Cross border regional services  Scheduled international services  Problem of cabotage  Link with Public service obligations Main actions undertaken at European level

27. Directorate-General for Energy and Transport 07/11/2003 27 2.Further discussion on the draft regulation on public services obligations after Altmark judgement(?)  Regional and national services  Obligation to tender if exclusive rights or compensation for P.S. 3.Rights and obligations of international rail passengers 4.Freight quality (compensation schemes considered) 5.Drivers licence directive Main actions undertaken at European level

28. Directorate-General for Energy and Transport 07/11/2003 28 Length of train drivers training in weeks

29. Directorate-General for Energy and Transport 07/11/2003 29 State of Play 1.At European level  Enlargement to take place on 1/05/2004 - Accession Treaties concluded in April 2003. Successful referenda  Second package: EP 1st reading on 14 January 2003; common position of Council 26 June; EP second reading on 22 October 03  New Commission proposals under preparation  Competition rules (abuse of dominant position, restrictive agreements, state aids)  Revision of TEN guidelines and priority projects and revision of TEN financial regulation (proposal 1st October 2003)  Preparation of EU financial perspectives 2007-2013

30. Directorate-General for Energy and Transport 07/11/2003 30 State of Play 2.At national level  Implementation of infrastructure package of 2001 by 15 March 2003  Open access already in D-I-UK-NL-Nordic countries but some more legal work needed in D-UK-S.  Open access still to be concretised in B - F – L -SP particularly  Infringement procedures against 9 countries before the European Court of Justice  Real challenges : setting the various bodies such as regulatory body, independence of allocation body and definition of TERFN.  Interoperability  ERTMS deployment plan and migration strategy

31. Directorate-General for Energy and Transport 07/11/2003 31 State of Play 3.The players  Infrastructure managers : to prepare network statement and clear conditions for access (cfr. Rail Net Europe)  Railway undertakings :  Historic operators seeking alliances between them or with new entrants to facilitate cross border freight operations (eg. Mannheim-Woippy, Brenner Rail Cargo)  New entrants ( DLC, Rail4Chem, RTC, etc) challenging historic operators on some corridors (North-South, Brenner, etc.)  Improvement of services to be expected soon and better competitiveness against road

32. Directorate-General for Energy and Transport 07/11/2003 32 State of Play  Customers  Organize themselves to express their needs  European Rail Freight Customers Platform  European Passengers Federation  Supplying industry  Main driver of standardisation activity  Offers more interoperable equipments (eg. Multi current loc, ERTMS, etc) at reduced costs

33. Directorate-General for Energy and Transport 07/11/2003 33 Conclusions  European Regulatory framework under way : there is a clear vision of all the aspects  A lot of work still to be done Urgent need of the agency on interoperability and safety Addressing all types of bottlenecks (short and long term actions needed) Promoting a dedicated rail freight network European ERTMS deployment plan for mid 2004  Investments on infrastructure and rolling stock, particularly in accession countries

34. Directorate-General for Energy and Transport 07/11/2003 34 For further information: Site: http://europa.eu.int/comm/dgs/energy_transport/index_en.html