1. Directorate-General for Energy and Transport 28/10/2003 1 The new European regulatory framework for railways « The Dutch future of European Rail » Amsterdam – 28/10/2003 Jean-Arnold Vinois, Head of the “Railway Transport and Interoperability” Unit European Commission

2. Directorate-General for Energy and Transport 28/10/2003 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 - The challenge of enlargement 7 - The challenge of financing the railways Summary

3. Directorate-General for Energy and Transport 28/10/2003 3 Rail Passenger Traffic Source: Prognos + European Transport Report 2002 (billion p.km) EU(15) ?

4. Directorate-General for Energy and Transport 28/10/2003 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 28/10/2003 5 Rail Passenger Traffic: trends High speed train Conv. railCar Plane

6. Directorate-General for Energy and Transport 28/10/2003 6 Rail Freight Traffic Source: Prognos + European Transport Report 2002 (billion tkm) EU 15 ?

7. Directorate-General for Energy and Transport 28/10/2003 7 Market Shares of Freight Transport (in %) CEEC EU (15) Source: Prognos, European Transport Report 2002

8. Directorate-General for Energy and Transport 28/10/2003 8 Nbr of Fatalities Railway passengers Sources: UIC; National Statistics EU 15 Rail Safety

9. Directorate-General for Energy and Transport 28/10/2003 9 Fatalities Railway crossings (EU 15) Sources: UIC; National Statistics Rail Safety

10. Directorate-General for Energy and Transport 28/10/2003 10 Staff employed in the railway sector (EU 15)

11. Directorate-General for Energy and Transport 28/10/2003 11 State aids awarded to the Railway Sector MEUR Financing

12. Directorate-General for Energy and Transport 28/10/2003 12 MEUR State aids awarded to the Railway Sector Financing

13. Directorate-General for Energy and Transport 28/10/2003 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 28/10/2003 14 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 »

15. Directorate-General for Energy and Transport 28/10/2003 15 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 %

16. Directorate-General for Energy and Transport 28/10/2003 16 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

17. Directorate-General for Energy and Transport 28/10/2003 17 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

18. Directorate-General for Energy and Transport 28/10/2003 18  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

19. Directorate-General for Energy and Transport 28/10/2003 19 Interoperability related activities Programming mandates and TSI development

20. Directorate-General for Energy and Transport 28/10/2003 20 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

21. Directorate-General for Energy and Transport 28/10/2003 21 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

22. Directorate-General for Energy and Transport 28/10/2003 22 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

23. Directorate-General for Energy and Transport 28/10/2003 23 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

24. Directorate-General for Energy and Transport 28/10/2003 24 Length of train drivers training in weeks

25. Directorate-General for Energy and Transport 28/10/2003 25 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  Social Dialogue between CER and ETF successful  Competition rules (abuse of dominant position, restrictive agreements, state aids; e.g. GVG/FS recent decision)  Revision of TEN guidelines and priority projects and revision of TEN financial regulation (proposal 1st October 2003)  Preparation of EU financial perspectives 2007-2013

26. Directorate-General for Energy and Transport 28/10/2003 26 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

27. Directorate-General for Energy and Transport 28/10/2003 27 EU Licensed railway undertakings (Notifications sent to the Commission) State of Play

28. Directorate-General for Energy and Transport 28/10/2003 28 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 (IKEA, 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

29. Directorate-General for Energy and Transport 28/10/2003 29 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

30. Directorate-General for Energy and Transport 28/10/2003 30  New partnerships between players  Border crossings problems to identify  Charter on Passenger services (CER)  Freight quality charter (CER)  Initiatives on quality indicators (UIRR, UIP) Other aspects: State of Play

31. Directorate-General for Energy and Transport 28/10/2003 31 The challenge of enlargement  To take place on 1 May 2004  Participation of candidates to all European bodies from April 2003  To implement the acquis communautaire by the time of accession  Open access for international freight services from the accession with 3 years transitional period for Poland and Hungary (up to end 2006)

32. Directorate-General for Energy and Transport 28/10/2003 32 A new railway geography after EU enlargement EU ( 1st May 2004 ) OTIF Balkanic States, Irak, Maroc, Algeria, Syria, Lebanon, Tunisia OSJD Azerbaijan, Byelorussia, China, Cuba, Georgia, Kazakhstan, Kirgizia, Korean PDR, Russia, Tajikistan Turkmenistan, Ukraine, Uzbekistan, Vietnam Albania, Iran 15 + Lithuania, Latvia, Estonia, Czech Rep., Hungary, Slovakia, Poland, Slovenia EEA Norway Liecht. EU candidates Turkey Bulgaria, Romania, Switzerland EU bilateral agreement

33. Directorate-General for Energy and Transport 28/10/2003 33 The financing challenge  Trans-European network approach Revision of guidelines to tackle accession countries and new list of 29 projects (Commission proposal 1st October 2003) Idea of dedicated railfreight network  Revision of TEN financial regulation Proposed support of 30 % to cross border projects  Revision of financial perspectives 2007-2013 Securing infrastructure financing is a key issue  Revision of “Eurovignette” directive 99/62 New rules of road charging Cross modal financing possible under conditions

34. Directorate-General for Energy and Transport 28/10/2003 34 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  Huge tasks but mobilisation of players now visible

35. Directorate-General for Energy and Transport 28/10/2003 35 For further information: Site: http://europa.eu.int/comm/dgs/energy_transport/index_en.html