COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 13.02.1997 
COM(97)34 final 
95/0205 (SYN) 
Amended proposal for a 
COUNCIL DIRECTIVE 
amending Directive 91/440/EEC on the 
development of the Community's railways 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 
On 19 July 1995 the Commission adopted a proposal1 for a Council directive 
amending Directive 91/440/EEC on the development of the Community's 
railways . The purpose of the proposal was to extend the access rights to railway 
infrastructure provided for in Article 10 of Directive 91/440/EEC, to create access 
rights for railways undertakings for the purpose of operating international and 
cabotage services for the transport of goods and for the combined transport of 
goods, and international services for the transport of passengers. 
At its plenary session of 25 October 1996 the European Parliament approved the 
Commission's proposal, subject to nine amendments.The Commission accepts the 
amendments to the third and ninth recitals, and to article 10, paragraph 1, of the 
proposed directive. These amendments strengthen or clarify the original text. 
The other amendments either go beyond the scope of the proposal, limited to the 
extension of access rights, or cover subjects on which the Community is 
developing policies in other contexts. The Commission, therefore, refuses the ^ 
following amendments : 
• introducing a new recital 5 a. 
This links the improvement of the financial situation and the write-off of the 
debt of railways to the extension of access rights, and so goes beyond the scope 
of the proposal; in any case, the Commission is presently working on policy in 
this area. 
• introducing a new recital 5 b. 
This introduces an obligation to develop Community rules, for all modes of 
transport, on the internalisation of external costs, respect for working time and 
the harmonisation of indirect taxation, and so goes beyond the scope of the 
proposal; in any case the Commission is presently working on policy in these 
areas. 
• introducing a new recital 5 c 
This obliges the Commission to ensure that infrastructure managers charge for 
the use of infrastructure on the basis of uniform criteria, even before the date 
COM(95)337 final, 19.07.1995, O.J.N° C 321, 1.12.1995, p. 10. 
Directive 91/440/EEC of 29 July 1991; O.J. N° L 237, 24.08.1991, p. 25. 
• set for the implementation by the Member States of Council Directive 
95/19/EC3 which cover this subject. (27 June 1997). This requirement goes 
beyond the scope of the proposal and is inconsistent with Directive 95/19/EC; 
modifying recital 6. 
This recalls that each mode of transport should be charged for the costs that it 
imposes, and so goes beyond the scope of the proposal; in any case the 
Commission is presently working on policy in this area 
modifying article 9.1 and 9.2, first subparagraph, of Directive 91/440/EEC, and 
introducing a new paragraph 9.1 a 
modification of article 9.1. This creates an obligation on Member States to 
help reduce debt and improves finances by the date of transposai of the 
proposed Directive. This goes beyond the scope of the Commission's proposal. 
Moreover, article 9.1 already imposes such an obligation, which had to be 
complied with by 1st January 1993. Consequently, the new date would be a 
step backward and could create legal uncertainty. The Commission is, in any 
case, working on policy in this area. 
introduction of a new paragraph 9. la This requires the Member States to 
ensure that the railways have customary own resources. This goes beyond the 
scope of the proposal and would create an unclear obligation as there is no 
customary level of own resources. The Commission is, in any case, working on 
policy in this area. 
modification of article 9.2, first subparagraph. This obliges Member States 
to require the establishment of separate debt amortitization units within railway 
undertakings; article 9.2 of Directive 91/440/EEC allows but does not oblige 
them to require this. This goes beyond the scope of the proposal; in any case 
such amortization units are only one means of achieving the end and so should 
not be obligatory. 
introducing new articles 10.2 a and 10.2 b to Directive 91/440/EEC : 
introduction of new article 10.2 a. This obliges Member States to ensure, 
by 1st January 2000, that the railways are not a a disadvantage compared to 
other modes of transport, as regards VAT on cross border transport and other 
fiscal provisions like duty-free sales. This goes beyond the scope of the 
proposal, being part of fiscal policy. 
introduction of new article 10.2 b. This obliges the Commission to report, 
by 1st January 1998, on plans to further interoperability. This goes beyond the 
scope of the proposal. In any case, the Council has adopted a directive on the 
interoperability of high speed rail and the Commission is to study how far this 
Council Directive 95/19/EC of 19 June 1995 on the allocation of railway infrastructure 
capacity and the canging of infrastructure fees. O.J. N° L 143, 27.06.1995, p. 75 
Council Directive 96/48/EC of 23 July 1996, O.J. N° L 235, 17.09.1996, p. 6, on the 
interoperability of the European high speed train network. 
Amended proposal for a 
COUNCIL DIRECTIVE 
amending Directive 91/440/EEC on the 
development of the Community's railways 
The Commission's proposal is amended as follows 
Recital 3 
Original proposal 
Whereas the application to the railways 
sector of the principle of freedom to 
provide services needs to take account 
of the specific characteristics of the 
sector and to be applied by stages; Amendment proposal 
Whereas the application to the railways 
sector of the principle of freedom to 
provide services needs to take account 
of the specific characteristics of the 
sector and to take place by stages; and 
whereas the principle must be applied 
uniformly as the Directive is 
implemented by the Member States, in 
order to avoid distortions of 
competition in and betweem the 
Member States: 
Recital 9 
Whereas, in the process of 
liberalization, it is necessary to take 
account of the contribution of transport 
services to the internal cohesion of 
national economies; Whereas, in the process of 
liberalization, it is necessary to take 
account of the contribution of transport 
services, in particular the socio­
economic role of regional rail transport. 
to the internal cohesion of national 
economies; 
ARTICLE 1, POINT 1 
Article 10, paragraph 1 
Railway undertakings within the scope Railway undertakings within the scope 
of Article 2 shall be granted access and of Article 2 shall be granted access and 
transit rights to the infrastructure in transit rights to the infrastructure in 
their Member State of establishment their Member State of establishment 
and in other Member States on and in other Member States on 
equitable conditions, for the purpose of equitable, transparent and non-
operating: discriminatory conditions, for the 
purpose of operating : 

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COM(97) 34 final 
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