1. Jonathan Goldberg - EMTA Draft regulation on public passenger transport services by rail and by road Progress report - October 2006 EMTA General meeting

2. Legislative process European Commission European Parliament European Council First Reading: October 2001 First Proposal: July 2000 Towards second reading Second Proposal: February 2002 No agreement Third Proposal: July 2005 Political Agreement: June 2006

3. Content of the proposal Generalisation of contracts of limited duration between authorities and operators Principle of subsidiarity: local authorities will be able to choose between in house production and competition. Ability to award directly public service contracts for rail based services Principle of reciprocity: internal operators won’t be allowed to operate other networks Period of transition: contracts granted previously will be able to continue under certain conditions Exclusion of long distance and regional rail services of this field

4. Main changes compered to the Commission version (1/2) Duration of contracts: Possible duration longer than 22.5 years (15 years +50%) for contracts awarded through a competitive tendering procedure in case of exceptional investments Exclusion of long distance and regional rail services of this field  With respect to national legislation (eg: not possible to award directly rail services in the Netherlands, mandatory award to SNCF in France) Possibility to award directly public service contracts if annual service less than :  €1 million or 300,000 veh.km  €1.7 million or 500,000 veh.km for small and medium sized companies (less than 20 vehicles)

5. Main changes compered to the Commission version (2/2) Control of the internal operator by the authority  Control similar to the one exerted over its own services  100% ownership not mandatory Possible ownership by a unique stakeholder of the competent authority Possible involvement of private interests (PPP) Geographical containment for the internal operator  The internal operator shall perform all public transport activity within the territory of the corresponding authority  Allowance of ancillary activities or outgoing lines Brussels Capital network

6. Transitional period The regulation will enter into force 3 years after its publication During the 12-year transitional period on-going contracts will still have a legal basement under certain conditions: Contracts awarded before July 2000 Contracts awarded after July 2000 and before entry into force of the regulation Contracts awarded on the basis of a fair competitive tendering procedure Contracts awarded with another procedure May continue until they expire May continue until they expire if duration is less than 30 years May continue until they expire if duration is comparable to maximal duration according to the new regulation

7. Expected agenda The text has to be approved as a Common Position by an upcoming Council of Ministers (not necessarily Transport) The translation of the text into EU official languages (20) will take two months (December 2006) Transmission to EU Parliament which has 3-month+1 period to express its position (April 2007) Text approved in the same terms -> Adoption of the text in April 2007 Amendments brought to the text -> Procedure of conciliation to adopt a common text in Autumn 2007 (or to abandon the proposal)