1970R1107 — EN — 01.01.1993 — 004.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B REGULATION (EEC)No 1107/70 OF THE COUNCIL
of 4 June 1970
on the granting of aids for transport by rail, road and inland waterway
(OJ L 130, 15.6.1970, p. 1)
Amended by:
Official Journal
No page date
►M1Regulation (EEC) No 1473/75 of the Council of 20 May 1975 L 152 1 12.6.1975
►M2Council Regulation (EEC) No 1658/82 of 10 June 1982 L 184 1 29.6.1982
►M3Council Regulation (EEC) No 1100/89 of 27 April 1989 L 116 24 28.4.1989
►M4Council Regulation (EEC) No 3578/92 of 7 December 1992 L 364 11 12.12.1992
▼B
REGULATION (EEC)No 1107/70 OF THE COUNCIL
of 4 June 1970
on the granting of aids for transport by rail, road and inland
waterway
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European EconomicCommunity, and in particular Articles 75, 77 and 94 thereof;
Having regard to the Council Decision of 13 May 1965(
1) on the
harmonization of certain provisions affecting competition in transport byrail, road and inland waterway, and in particular Article 9 thereof;
Having regard to the proposal from the Commission;Having regard to the Opinion of the European Parliament(
2)
Having regard to the Opinion of the Economic and Social Committee(3);
Whereas the elimination of disparities liable to distort the conditions of
competition in the transport market is an essential objective of the
common transport policy;
Whereas, to that end, it is appropriate to lay down certain rules on the
granting of aids for transport by rail, road and inland waterway in so far
as such aids relate specifically to activities within that sector;
Whereas Article 77 states that aids shall be compatible with the Treaty if
they meet the needs of co-ordination of transport or if they representreimbursement for the discharge of certain obligations inherent in theconcept of apublic service;
Whereas Council Regulations (EEC) No 1192/69 and (EEC) 1191/69(
4)
of 26 June 1969 laid down common rules and procedures for,respectively, compensation payments arising from the normalisation ofthe accounts of railway undertakings, and compensation in respect of
financial burdens resulting from public service obligations in transport
by rail, road and inland waterway;
Whereas it is therefore necessary to specify the cases and the
circumstances in which Member States may take co-ordination measuresor impose obligations inherent in the concept of a public service whichinvolve the granting of aids under Article 77 of the Treaty not coveredby the aforesaid Regulation;
Whereas, pursuant to Article 8 of the Council Decision of 13 May 1965,
payments by States and public authorities to railway undertakings are tobe made subject to Community rules; whereas payments made by reason
of the fact that the harmonisation referred to in the said Article 8 has not
yet been carried out should be exempted from the provisions of thisRegulation delimiting the powers of Member States to take co-ordination measures or impose obligations inherent in the concept of apublic service which involve the granting of aids under Article 77 of the
Treaty;
Whereas, owing to the particular nature of these payments, it seems
appropriate, pursuant of Article 94 of the Treaty, to lay down a special
procedure for informing the Commission of such payments;
Whereas it is desirable that certain provisions of this Regulation should
not apply to measures taken by any Member State in implementation of
a system of aid upon which the Commission has, pursuant to Articles 77,92 and 93 of the Treaty, already pronounced;
Whereas it is desirable, in order to assist the Commission in its
examination of aids granted for transport, to attach to the Commission1970R1107 — EN — 01.01.1993 — 004.001 — 2
(1) OJ No 88, 24.5.1965, p. 1500/65.
(2) OJ No 103, 2.6.1967, p. 2050/67.
(3) OJ No 178, 2.8.1967, p. 18.
(4) OJ No L 156, 28.6.1969, p. 1.
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an advisory committee consisting of experts appointed by Member
States;
HAS ADOPTED THIS REGULATION:
Article 1
This Regulation shall apply to aids granted for transport by rail, road and
inland waterway, in so far as such aids relate specifically to activitieswithin that sector.
Article 2
Articles 92 to 94 of the Treaty shall apply to aids granted for transport
by rail, road and inland waterway.
Article 3
Without prejudice to the provisions of Council Regulation (EEC) No
1192/69 of 26 June 1969 on common rules for the normalisation of theaccounts of railway undertakings, and of Council Regulation (EEC) No1191/69 of 26 June 1969 on action by Member States concerning theobligations inherent in the concept of a public service in transport by
rail, road and inland waterway, Member States shall neither take co-
ordination measures nor impose obligations inherent in the concept of apublic service which involve the granting of aids pursuant to Article 77of the Treaty except in the following cases or circumstances:
1. As regards co-ordination of transport:
(a) where aids granted to railway undertakings not covered by
Regulation (EEC) No 1192/69 are intended as compensation foradditional financial burdens which those undertakings bear bycomparison with other transport undertakings and which fallunder one of the heads of normalisation listed in that Regulation;
(b) until the entry into force of common rules on the allocation of
infrastructure costs, where aid is granted to undertakings whichhave to bear expenditure relating to the infrastructure used bythem, while other undertakings are not subject to a like burden. In
determining the amount of aid thus granted account shall be taken
of the infrastructure costs which competing modes of transport donot have to bear;
(c) where the purpose of the aid is to promote either:
— research into transport systems and technologies more
economic for the community in general; or
— the development of transport systems and technologies more
economic for the community in general.
Such aid shall be restricted to the research and development stage
and may not cover the commercial exploitation of such transportsystems and technologies;
(d) until the entry into force of Community rules on access to the
transport market, where aid is granted as an exceptional andtemporary measure in order to eliminate, as part of a reorganisa-tion plan, excess capacity causing serious structural problems,and thus to contribute towards meeting more effectively the needsof the transport market;
(e) until 31 December 1995, where the aids are granted as a
temporary measure and are designed to facilitate the development
of combined transport, such aids must relate to:
— investment in infrastructure,
or
— investment in fixed and moveable facilities necessary for
transhipment,
or1970R1107 — EN — 01.01.1993 — 004.001 — 3
▼M4
▼M4
— investment in transport equipment specifically designed for
combined transport and used exclusively in combinedtransport,
or
— costs of running combined transport services in transit across
Austria, Switzerland or the States of the former Yugoslavia.
The Commission shall submit a progress report on the above
measures to the Council every two years giving details, inter alia ,
of the destination of the aids, their amount and their impact on
combined transport. Member States shall supply the Commissionwith the information needed to compile the report.
By 31 December 1995 the Council, acting on a proposal from the
Commission, shall decide under the conditions laid down in the
Treaty, on the arrangements to be applied subsequently or, if
necessary, on the conditions for terminating them.
2. As regards reimbursement for the discharge of obligations inherent in
the concept of apublic service:
until the entry into force of relevant Community rules, where
payments are made to rail, road or inland waterway transportundertakings as compensation for public service obligations imposedon them by the State or public authorities and covering either:
— tariff obligations not falling within the definition given in Article
2 (5) of Regulation (EEC) No 1191/69; or
— transport undertakings or activities to which that Regulation does
not apply.
3. Without prejudice to the provisions of Article 75 (3) of the Treaty,
the Council, acting by a qualified majority on a proposal from theCommission, may amend the list given in paragraphs (1) and (2) ofthis Article.
Article 4
1. Until the expiry of the period laid down for attaining financial
balance in accordance with Article 15 (1) of Council Decision No 75/327/EEC(
1), of 20 May 1975 on the improvement of the situation of
railway undertakings and the harmonization of rules governing financialrelations between such undertakings and States, and without prejudice to
Regulations (EEC) No 1191/69 and (EEC) No 1192/69 Article 3 shall
apply neither to financial assistance given to railway undertakingswithin the framework of their business plans in accordance with Article5 (1) of that Decision nor to the deficit subsidies granted to them inaccordance with Article 13 of that Decision.
2. In the absence of Community Regulations on the harmonization of
the rules governing the financial relations between States and railway
undertakings other than those referred to in Article 1 of Decision No 75/
327/EEC and without prejudice to Regulations (EEC) No 1191/69 and(EEC) No 1192/69, Article 3 shall not apply to payments by States andpublic authorities to these undertakings made by reason of any failure toachieve harmonization.
Article 5
1. When informing the Commission, in accordance with Article 93
(3) of the Treaty, of any plans to grant or alter aid, Member States shallforward to the Commission all information necessary to establish thatsuch aid complies with the provisions of this Regulation.1970R1107 — EN — 01.01.1993 — 004.001 — 4
(1) OJ No C 62, 15. 3. 1975, p. 27.▼B
▼M1
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2. The aids referred to in Article 4 shall be exempt from the
procedure provided for in Article 93 (3) of the Treaty. Details of suchaids shall be communicated to the Commission in the form of estimates
at the beginning of each year and subsequently, in the form of a report,
after the end of the financial year.
Article 6
An advisory committee to the Commission is hereby set up; it shall
assist the Commission in its examination of aids granted for transport byrail, road and inland waterway. The committee shall have as Chairman arepresentative of the Commission and shall consist of representativesappointed by each Member State. Not less than ten days' notice of
meetings of the committee shall be given and such notice shall include
details of the agenda. This period may be reduced for urgent cases. Thefunctioning of the committee shall be subject to Article 83 of the Treaty.
The committee may examine, and give an opinion on, all questions
concerning the operation of this Regulation and of all other provisionsgoverning the granting of aids in the transport sector.
The committee shall be kept informed of the nature and amount of aids
granted to transport undertakings and, generally, of all relevant details
concerning such aids, as soon as the latter are notified to theCommission in accordance with the provisions of this Regulation.
Article 7
The provisions of Article 3 shall not apply to measures adopted by any
Member State in implementation of a system of aid upon which theCommission has, pursuant to Articles 77, 92 and 93 of the Treaty,already pronounced.
Article 8
This Regulation shall enter into force on 1 January 1971.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1970R1107 — EN — 01.01.1993 — 004.001 — 5