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Vol. 1986/0 157 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben. 
COMMISSION OF THE EUROPEAN COMMUNITIES
C 0 M (8 6 ) 340 final
Brussels, 2 7  June 1
C O M M U N I C A T I O N  F R O M  T H E  C O M M I S S I O N  T O  T H E  C O U N C I L  
M E D I U M - T E R M  T R A N S P O R T  IN F R A S T R U C T U R E  P R O G R A M M E
C 0 M C 8 6 ) 340 final

G 6  H - ƒ  y o
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
MEDIUM-TERM TRANSPORT INFRASTRUCTURE PROGRAMME
Introduction
1. The completion of modem transport infrastructure networks, conceived 
at the European scale, will contribute to the unification of the 
internal market :  exchanges of people, goods and services will be 
simplified and overall costs reduced.
Moreover, the establishment of rapid and efficient links between all 
Community regions is an essential prerequisite to strengthen the 
economic and social cohesion of the Community. Such links will also 
fa c ilita te  the steady development of exchanges notably for the 
peripherial regions by helping them to overcome the handicaps of 
enlargement and to fully participate in the Community's economic and 
social development as well as in trade with non-member states.
The development of such a network has to imply a coordination of the 
choice of investments in a w ay that meets the requirements of 
environmental policy.
The construction of a new  network can also stimulate technological 
development likely to be of value for exports and will enlarge the 
market for new  technologies in the Community for European industry; 
this will offer the security of future increases in productivity and 
competitiveness.
Furthermore the Commission has pointed out, in the 1985-86 annual 
economic report, the benefits that would stem from a coordinated 
infrastructure strategy in the framework of a m uch greater convergence 
of national economic policies.
2. The need for community action in the field of infrastructure is based 
upon the economic importance of the transport sector which represents 
more than 5  % of Community G N P  and directly employs more than 5  
million people.

-  2 -
In the last ten years the tra ff ic  between Community countries has 
generally increased, the considerable increase in road tra ffic  has 
compensated for the slight decline in ra il tra ffic  and a more 
marked drop in waterways. However, in the same period expenditure 
on infrastructure has dropped or at best remained stable in some 
member states.
Therefore, there is a latent risk of saturation on some links and 
a decline in standards on others in parallel with the slow rate of 
development of new  f a c ilitie s . If it is wished to stimulate the 
development of trade and tourism, both important for the economic 
development of the whole of the Community, i t  is necessary to 
develop a Community transport infrastructure policy.
Without wishing to replace the trad itio n al responisiblity of the 
M em ber States in this field it is necessary to demonstrate the 
dynamism of the Community in such a way as to amplify the expected 
effects of certain infrastructure works. Som e major projects and 
certain existing infrastructures can only meet th eir m axim um  
objectives in the context of a Community transport network.
A  Community in itia tiv e  will help to avoid a fragmented development 
of infrastructure; i t  would also fa c ilita te  a regrouping, more 
easily achieved than on a national basis, of technical, industrial 
or financial fa c ilitie s , to meet the needs of projects whose scale 
risk or costs make problematical. Finally, it  would ensure the 
coordination of infrastructure investment with other Community 
p rio ritie s, regional in d u strial, environment, employment and safety 
policies.
3. Thus the basis for Community action in the field of transport 
infrastructure is founded on the need to coordinate investments 
to be undertaken on the Community network, th is led to the adoption 
in 1978 of a procedure for consultation and coordination of 
investment decisions (1).
(1) Council Decision of 20 February 1978 (78/174/EEC)

- 3  -
In addition, it  is necessary at Community level to promote those 
projects which due to their nature and situation are of special 
importance for the movement of people and goods. Analyses undertaken 
by the Commission have shown that this factor can be quantified and an 
appreciation made of the priority of projects for the Community.
4. This is the basis upon which Community action for transport
infrastructure has been developed over the last few years. Thanks to 
Parliament's support, budget resources have been made available since 
1982 (1). In 1984 the Council decided to consider a study of a medium 
term programme (2) which concentrated on significant projects, 
objective c rite ria  and funding methods. The Commission sent its  firs t 
report on this subject to the Council on 14 December 1984 (3).
3. This communication sets out the broad lines of a medium-term 
transport infrastructure programme. The main subjects dis­
cussed :
the objectives which the programme is to achieve, taking 
into account the Community's general guidelines and 
p rio ritie s of the C o m m o n  Transport Policy,
- c rite ria  for assessing the Community interest of pro­
jects and for ranking them in order of priority,
- the network of principal links of Community interest 
with an indication of probable developments in the next 
10 to 15 years,
(1 )  1982 :  10 mio E C U  - 1983 :  15 mio E C U  - 1984 :  80 mio E C U  
1985 :  90 mio E C U  - 1986 : 65 mio E C U
(2) D oc 6974/84 PV /CO N S. 20 Dec. 1984
(3) Document C0M (84)709 final, 14 December 1984

- 4 -
the use of public and private financial sources - including the 
Community financial instrument - to undertake the programme.
- the strategy proposed for the f ir s t measures, taking ac­
count of the budget resources available and the major 
projects of immediate in te re st.
The Commission proposes a general regulation to provide the Community 
with a permanent fa c ility  to offer a financial stimulus to the conception 
and undertaking of projects in the medium term programme.
The p riority objectives of a medium-term transport infrastructure policy
6. The p rio rity  objectives for transport infrastructure have a l­
ready been discussed in d etail at the Council. A  consensus was 
reached on the prio rity  to be given to the following operational 
objectives which are entirely in keeping with the general Community 
objective to complete the internal market and reinforce its  economic 
and social cohesion. The operational objectives are :
improvement of transport communications in 'land-sea' corridors
- reduction of the costs inherent in tra n sit tra ff ic , in 
cooperation with non-member states concerned notably by works 
designed to support combined transport,
- the integration of the peripheral regions into the C om ­
munity's network,
the construction of links offering a high level of ser­
vice between the main c itie s , in particular high-speed 
ra il links (160 km/heure and over).
C riteria for assessing benefit to the Community
7. A  consensus was also reached at the Council concerning the c rite ria  on 
which a project serving the objectives set out above m ay be regarded 
as of Community in te re st, and on the need to quantify that benefit as 
precisely as possible.

The c rite ria  are as follows
the socio economic p ro fitab ility  of projects on the national 
and Community levels
the Community interest of the projects, in particular:
. the relative importance of existing or future intra-Community 
t r a f f i c ,
•  the importance of existing or future Community trade with 
non-member countries on the link concerned;
•  the degree to which the isolation of peripheral regions of the 
Community is reduced.
the consistency of the project with other Community measures 
under the C o m m o n  Transport Policy and under other com m on po­
lic ie s;
the complementarity of the project with projects undertaken at the 
national level.
The Commission has developed a method of economic evaluation 
known as T A S C  (Transport Assessment System for the Community).
T A S C  can produce tra ffic  forecasts for various scenarios of 
economic growth and improved transport fa c ilitie s . It can 
then evaluate the Community in terest on the basis of traffic 
data (origin and destination), journey time and investment 
costs.

-  6 -
The transport infrastructure network of Community in terest
9. The integration of the European internal market and the de­
velopment of exchanges calls for modern and e fficien t transport 
links. In an integrated economic entity of the sort that the 
Community is building, transport links must be planned and developed 
to constitute a coherent network able to cope with the new  
requirements stemming from the unification of Europe. The network of 
Community in terest is therefore defined as the to ta lity  of links 
called upon to handle the transport flows which w ill arise from the 
progression realisatio n  of Community objectives.
The network of Community in terest is therefore defined as an assembly 
of links destined to handle the tra ff ic  flows arising from the steady 
realisatio n  of Community objectives. Routes are selected on the basis 
that a change in tra ff ic , in terms of density or new  flows, is fe lt 
beyond the national network.
10. Annex 1  presents a network of Community in te re st, based on the 
work of the Transport Infrastructure Committee, for r a il, road 
and inland waterways.
The network includes the most essential links for Community exchanges 
and is by definition with evolve with time :  i t  has to adapt to 
modifications to trade flows such as could arise from the enlargement 
of the Community or through the impact of specific policies. It has 
also to take account of the new  specialisations of the European 
economies, stemming from changes in the nature and localisation of 
industrial and service a c tiv itie s, which modify the demand for 
tran sp o rt.
The network is presented in diagrammatic form with direct 
lines between the traffic-generating nodes and no indication 
of exact routes. The network design takes account of the role 
in the Community of sea and air transport, and the Community's 
infrastructure policy must accordingly, for reasons of con­
sistency, also apply to ports and airports.
Measures to modernise ports and airports notably those intended to 
improve the integration of land, ssa and air transport are an integral 
part of the programme. Such measures are based d irctly  upon the

- 7  -
conclusions of the Commission's communication on maritime transport 
(1) and the second memorandum on civil aviation (2). Their inclusion 
is even more important in the light of the need for economic 
development in the pheripheral and isolated regions which are 
particularly dependent upon air and maritime links for contact with 
the Community as well as non-member states.
11. The completion of the Community network that has been presented 
implies, taking account of the shortcomings of the existing 
infrastructure, the undertaking of a number of projets. The medium 
term programme is made up of a number of these projects whose priority 
and state of preparation means that they should be undertaken in the 
next 10 —  15 years. The maps attached show those projects whose 
completion in the next 5  years appears certain. The details of the 
medium term programme are shown in Annexe 2.
Community action at several levels
12, The primary role of the Community is  to assure an effective 
coordination of the undertaking of these projects and to contribute to 
the emergence of those which are particularly necessary for the 
development of the Community. However, the Community has also to be 
able to provide appropriate financial support for certain projects in 
the medium term programme.
In view of the need for financial support, i t  appears useful to 
establish a distinction, in the context of the medium term programme, 
between two types of project :
"A " projects, normally medium or modest size, which are essentially 
intended to improve the level of service on c ritic a l points on the 
existing network or to enlarge the network without making a  
fundamental modification to its  nature.
(1) C O M  (85)90 Final and particularly paragraphs 104 et sei
(2) C O M  (84) 72 Final and particularly paragraphs 69-70.

-  8 -
- "B" projects, of large size, whose undertaking would, taking
account of the problems of congestion and isolation of pheripheral 
regions, provide a new  service, give a major step forward in the 
service provided by the existing network or provide significant 
extensions to that network. Examples are the completion of projects 
to cross natural barries in the Community (the Alps, the Pyreenees, 
the Channel, Baltic e tc .), to complete new  major transport axes 
serving countries the furthest away from the geographical centre of 
the Community (Portugal, Ireland or Greece), to establish new  
technologies (high-speed railways, third-generation motorways).
13.In the two types of project, the Community can play the role of
catalyser. This will involve assistance to the in itia l programming, 
the inception and financing of infrastructure projects.
14.The Community can assist the preparation and the establishment of 
projects whatever the form of financing planned :
by taking the in itia tiv e  of calling the various parties together 
(in the f ir s t place the authorities of the M ember States) in order 
to convince all concerned of the value of an integrated examination 
and to coordinate the various projects envisaged, and finally to 
accelerate decision making.
- in calling for the support and organising the assistance of 
industrial and other interested p arties.
in giving public support to a project due to its  Community in terest 
established on the c rite ria  noted above, th is support can take the 
form of a "declaration of European u tility " .
- participating in the financing of preparatory works and fe a sib ility  
studies by the means of subsidies or re-imbursable advances. In 
view of the problems created by the high cost of these a ctiv itie s 
for major projects, such Community action, which is variable in 
function of the Community in terest of the project, can play a 
determining role.

- 9  -
- improving the economic environment of projects, noteably w hen 
private monies are involved by removing administrative obstacles 
which threaten to compromise the efficient management of the project 
this applies equally to the construction as to the operational 
phases of the work. Proposals already exist, for example, to free 
the movement of capital, or for the installation of equivalent 
fiscal and accounting practices.
15. The Community also has a part to play in the financing of projects. 
Methods of assistance must be adapted to the characteristics of the 
project and will differ according to the type of project (A  or B).
16. The majority of projects are the responsibility of public 
authorities and their financing is essentially public.
In order to increase the coherence of the programming and accelerate 
the realisation of these projects, a concentration of the 
Community's budget resources will be needed. In most cases it will 
be necessary to coordinate or improve access to the traditional 
sources of finance (budget contributions by the M em ber States plus 
the Community and EIB-type borrowings). The Community's present 
instruments (ERD F, IM P, EIB, NCI, SIT (1)) should be systematically 
used in combination to assemble the financial packages. Steps should 
be taken to ensure that the Community goes beyond merely 
contributing to existing financial plans.
(1) SIT :  specific instrument for the support of transport in­
frastructure (budget Article 581).

-  10  -
O n  the one hand the support of ERDF,  EIB for transport 
infrastructure projects amounts to 5.8 bio E C U  between 1981-85. This 
support has essentially been directed to improve the infrastructure 
necessary for regional development in the least prosperous zones of 
the Community. In a certain number of cases the projects concerned 
meet both the objectives of regional development and the 
completion of a network of transport of Community in terest; 
here support for transport infrastructure will continue to be an 
important field for Community structural a ctiv ity . Hence the 
objectives of the Community in relation to the development of 
transport infrastructure have to be taken into account in the goals 
for the structural funds, notably the re-inforcement of economic and 
social cohesion.
O n  the other hand, the use of a specific instrument for transport 
infrastructure is necessary, either to meet the needs of projects 
linked directly to the objectives of transport policy, or to 
generate resources over and above those supplied by the Community 
budget. The S.I.T. thanks to its  specific nature can play th is role 
to allow Community action to go beyond a simple contribution to 
pre-existing financial plans. The action of the Community, linked to 
the role of animator which i t  plays in relation to preparatory 
studies, information for the M ember states and the stimulation of 
research, can have an important impact on the tuning of national 
infrastructure programmes, particu larly  in relation to the timing of
projects.
Taking account of the fact th at, fir s tly , projects are often 
limited in size - which does not however imply that they are of 
limited value - or, secondly, the fact that they are undertaken by 
public bodies, the Community can intervene most efficien tly  to 
accelerate projects by direct or indirect subsidies, as the 
experience with SIT has shown.
Som e projects, however, are so large or so complex, in that they 
cannot be sp lit into smaller units because of severe geographical or 
technological constraints, hence more elaborate financing methods 
are needed than those at present available to the Community.

-  1 1  -
In view of the constraints on national and Community budgets the 
possibility of applying private capital for major projects of 
Community interest has to be used to the full.
At this point the Community's role goes beyond coordination 
and expediting the work :  it must help certain projects to 
become feasible propositions and take shape; in other words 
it must be the catalyst. This can happen only if the Com­
munity plays a more active part which aims to persuade the market to 
provide most of the capital :
- by encouraging governments to create a favourable tax and 
regulatory environment the purpose being to help mobilize the 
necessary capital in appropriate form (acquiring, placing and 
issuing of shares).
- by giving help at the right time, i.e. when a project is launched, 
through a budget contribution to the preparatory work and to the 
initial financing. This would be a new way of applying assistance 
under the budget, with the aim of reducing a project's initial 
cost directly or indirectly (by paying for studies, ancillary work 
and contributing to capital).
by mobilising the available capital in the market, through 
a renewed form of Community intervention :  by granting 
budgetary guarantees, appropriate to the risks involved :  
by loans granted by the E.I.B. on its own resources or on 
resources collected by the Commission, the Community could 
use 'project financing' techniques which aim to share the risks 
involved and which have already been used to finance the 
construction of certain large projects.
In the near future the Commission intends to present to the Council, 
in the context of a strengthening of activities in the field of 
financial engineering, a communication detailing the more active 
role that the Community can play.

-  12  -
Budgetary Requirements
18. A two stage approach has been adopted to establish the budget needed 
for transport infrastructure :
1 .  support should be given in priority to projects whose "Community 
interest" established on the basis of criteria set out under 
point 7 above, justifies Community prompting.
2. Based on previous experience the "efficiency threshold" for 
Community support can be identified thus :
- those projects for which Community action will mainly con­
sist of a capital grant as a means of subsidy, a contri­
bution of some 15 - 2535 will be necessary to achieve the 
desired stimulation,
- on the other hand, those projects in point 17 above where 
the Communities' intervention under SIT will have to be 
determined on a case by case basis, depending on the form 
of financial support, in order to have the catalytic ef­
fect looked for.
Taking these points into account a steady expansion of the budget 
devoted to support is looked for. If only due to the time needed for 
national authorities to adapt their plans a degree of progressivity 
is called for. In this light a gradual increase towards 150 mio ECU 
in 1990 from the current level of expenditure is défendable: taking 
account of the cost of projects already identified (see Annex 2, 
point 1). This total is estimated as 20 bio ECU ,  which will have to 
be increased as and when further B type projects are identified.

- 13 -
19. Of the total budget resources available for the medium-term 
programme, the largest part (about two thirds) should be assigned to 
major projects ("B" projects). This would offer the dual advantage 
of releasing substantial funds for continued work to improve the 
basic network while channeling the largest share to major projects 
which the Community needs if it is to meet the great commercial, 
industrial and technological challenges of tomorrow.
20. In the initial phase of the medium-term programme the Community 
should both continue its measures to assist ”A"-type projects 
started under the budgets for 1982 to 1984 and assist the emergence 
of "B" projects.
In other words, at this stage assistance to "B"-type projects would 
focus on feasibility studies, improvements to access routes or other 
preparatory works rather than any direct contribution to 
construction, which would develop at a later stage.
Draft Council conclusions
21. The Council is requested :
to approve the guidelines of the communication relating to a medium 
term programme for transport infrastructure.
- to approve the outline regulation relating to the medium
term programme for transport infrastructure. This proposal 
would replace those presented by the Commission in 1976 (1) and in 
1983 (2).
(1) O.J. C/207 of 2.9.1976 pages 9-10.
(2) O.J. C 36 of 10.2.1984 pages 3-3.

-  1 4  -
ANNEX 1
THE COMMUNITY TRANSPORT INFRASTRUCTURE NETWORK 
A. General thinking behind the network
1. The work of the Transport Infrastructure Committee has re­
sulted in the road, rail and inland waterway networks of Com­
munity interest. Annexes 3, 4 and 3 (rail, road and inland waterways) 
contain more detailed information taking account, in particular, of 
Spanish and Portuguese needs.
This network is made up of the links of the greatest importance to the 
Community. It is illustrated in simplified form, without specifying 
the precise routes, which can be tailored to traffic patterns in the 
Community.
2. The infrastructure must guarantee a satisfactory guality of 
service at every point on the Community interest network. The 
minimum reguirements were considered to be :
(i) a normal traffic flow, with saturation flows accepted 
only for a limited number of hours each year;
(ii) satisfactory access to each region and major conurbation 
in the Community;
(iii) capacity to allow the requisite expansion of goods ser­
vices in general and of heavy goods, combined transport 
or dangerous goods services in particular;
(iv) maximum safety for users.
As links between major traffic generating nodes the networks 
represented naturally also serve the principal ports and airports.

- 15 -
Stretches of the network on which upgrading schemes are planned to 
overcome capacity shortages or inadequate quality of service are 
marked on the rail, road and inland waterway maps. The Member States 
have submitted their plans for these stretches to the Commission. 
Preparations are so advanced that the schemes seem certain to go ahead 
within the next five years. Needless to say, this does not preclude 
embarking on other projects over the same period, and in particular 
the high-speed rail links or to cross natural barriers which are 
currently under study.
The Road Network
The minimum required on the road network is :
- to abide by the Geneva Agreement of 15 November 1975 on 
Main International Traffic Arteries;
- to maintain a steady flow of traffic for all but a very 
limited number of peak hours per year, by building new 
roads, upgrading existing ones or special routing;
_ allignement with the Community situation regarding com­
mercial vehicle weights and dimensions.
The road projects of Community interest concerning the motor­
way network meet two objectives.
Some are designed to boost the capacity of sections of motor­
way approaching saturation point.
Some of the upgrading schemes will take the form of a senes of 
separate projects spaced along the same route. In others, the

- 16 -
aim is to relieve a local bottleneck, (a road through a town or city, 
a missing link etc. ...).
Some of the Member States projects were not selected because 
they were judged not sufficiently important for long-distance 
international traffic.
C. The Rail Network
6. For the railways the minimum characteristics considered were :
- speed of over 200 km/h on long-distance lines with very 
high passenger densities; generally this should be 
achieved by building new lines, either reserved for pas­
senger trains only or open to both passenger and goods 
services;
- speeds of between 160 and 200 km/h on lines with lower 
passenger densities, generally by upgrading existing 
lines;
- UIC gauge C1 on all new lines so that every type of con­
tainer, swap body and commercial vehicle (semi-trailers, 
road trains, etc.) can be carried;
- on upgraded existing lines where conversion to gauge C1 
proves too costly, gauge B, which is sufficient to pro­
mote the expansion of combined transport services, al­
beit within certain limits;
- technical facilities guaranteeing high capacity, preci­
sion of train movements and punctual services.

- 17 -
7. Modernisation of the rail network is in the Community's interest in 
three respects :
- progress must be made on transport costs, frequency of 
service and operating speeds if goods are to be moved 
economically. To achieve this, the infrastructure on 
existing lines must be upgraded, primarily to facilitate 
combined transport services. In addition, the leading 
international goods train routes must be equipped with a 
limited number of modern marshalling and trans-shipment 
centres;
- infrastructure improvements are needed on existing lines 
too in order to raise passenger service speeds to over 
160 km/h on all main lines in the Community;
- within the general rail network, a high-speed network 
consisting mainly of new lines is beginning to take 
shape to capitalize on the new opportunities opened up 
by very high speed (over 200 km/h) passenger trains.
A number of projects of this type are underway.
D. The Inland Waterway Network
8. Generally the minimum applied to the inland waterways was the
Class IV, "widebeam" gauge, for 1,350 t self-propelled barges and for 
convoys with 1,000 - 1,500 dwt push-barges. However, exceptions to 
this rule can be allowed.
9. Most of the Community inland waterway network consists of the 
wide-beam waterways already in operation or now being built.
However, lower-capacity stretches have been included to fill 
in gaps in the network even though their traffic levels are 
less high.
On the basis of evaluation studies it will be necessary to examine 
whether some improvement projects for waterways serving ports off the 
main network are of Community interest :  in this case such links will
be added to the network.

- 18 - ANNEX 2
Medium term transport infrastructure programme
A. General approach
1. Projects of Community interest already identified by the Member 
States represent, for the 10 to 15 year period under consider­
ation, an investment of over 20 billions of ECUs. The cost of 
projects already in preparation has to be added to this figure.
Starting from the distinction between projects A and B a medium 
term strategy has to be developed to allow the Community role to 
be identified in the promotion of a programme. It should be re­
called that type B projects, by their nature, imply a radical 
change in the level of service offered to users. By the applic­
ation of advanced techniques to such projects there may be, in 
certain cases, possibilities for European industries to exploit 
new techniques for the world market (e.g. high speed passenger 
transport by guided magnetic trains).
2. Community assistance for these projects, which are particularly 
useful for economic and social development in Europe, can be sup­
ported on the basis that it will encourage the Member States to 
initiate or to accelerate their undertaking. As Community re­
sources are limited it will be necessary to select those projects 
which are most likely to produce an optimal effect in terms of
the principal Community objectives. This selection has to be based on 
a through examination of the Community interest of projects in the 
light of the criteria and the results of the method described in point 
8. On the basis of an analysis it is possible to indicate which axes 
might be given priority in the mdium term programme.
B. Priority projects to include in the medium term programme
3. Projects situated on axes carrying major Community flows and 
involving heavy burdens for transit countries.
For these projects. v n  with an appropriate system of pricing, 
there remains a disequi librium between the costs and the bene­
fits for the countries where they are situated and hence there 
exists a justification for Community intervention in the following 
actions :

- 19 -
- the removal of bottlenecks on sections of axes with high transit
traffic. Examples :  access route to the Mont Blanc tunnel, on the
axe Benelux - France - Italy, the section Aachen - Köln on the axe 
Benelux - Federal Republic of Germany - Switzerland/ Austria etc.
- the strengthening of rail axes which relieve bottlenecks or for 
combined transport in overloaded road corridors. Examples :  links - 
Randstad - Germany, Scandinavia - Germany, the Alps, the axe 
Amsterdam - Brussels, Luxemburg - Metz - Strasbourg - Bale - Milan - 
Rome etc.
- the improvement of routes giving access to transit links established 
by non-Member states (notably Austria, Switzerland and Yugoslavia) 
which carry a large share of Community traffic in such as the rail 
links over the Brenner or Tauern, on the improvement of by-passes.
- the modernisation of links in the waterways network notably those 
providing connections between basins (e.tg. Seine - Escaut, 
Rhin-Rhône).
AT^imp rovement of land-sea-links, particularly in the corridor 8M - 
Ireland-Continent.
In view of the decision to construct a fixed channel link the 
Community support should be concentrated upon :
- rail and road access to the fixed link
- the development or the reconversion of land-sea facilities, 
notably the link between the Belgium and Dutch ports and ports 
situated to the North of the Thames.
In addition work should be continued in Ireland on the improve­
ment of the North-South axes which serve the principal ports pro­
viding links to the rest of the Community.

_  20 -
In the field of improved land-sea links the application of new 
technologies may be the subject of research or study at Community 
level (e.g. Straits of Messina, Gulf of Corinth, Scandinavian links).
5. Progressive improvement of links of a high level of service between 
the capital and major urban areas, especially high speed links.
The role of the Community in the completion of a high-speed passenger 
transport network has been the object of a study by a working group; 
their report of 1985 will be sent to the Council. Studies are already 
well-advanced, with Community cooperation, on the first project - the 
link Paris-Brussels - Cologne/Amsterdam.
6. A better integration of remote regions into the Community net­
work.
6.1. The North-West - South-East axes (serving Greece).
Priority will be given to the continuation of work in the 
context of the Greek memorandum to improve the North-South 
link in Greece to Yugoslavia.
It will be necessary to ensure proper coordination between this 
axe and the East-West link (Igoumenitsa - Volos) which is 
proposed to facilitate East-West transit in Greece.
6.2. The North East-South West axes (serving the Iberian penin­
sular).
The following priorities have been identified on the basis of 
studies undertaken by the Spanish and Portuguese governments :
- axe Irun - Madrid - Algeciras (road and rail)
- axe Barcelona - Madrid - Lisbon (road and rail)
- Meditteranean road axe - Narbonne - Algeciras.
- the road and rail axes Irun - Burgos - Porto - and Irun - Burgos - 
Coimbra - Lisbon - Faro
- improvement of the transpyrenian links :  Pau - Saragossa (road); 
Toulouse, Barcelona (road) modernisation of railway frontier
crossings.


A nnex 4
(XJTUNE DEVELOPMENT PLAN FO R TRANSPORT 
INFRASTRUCTURE
FETWOflK OF ROAD LIN KS OF CGWtNlTT'
INTEREST
Projects camuiicated 
b y  M w b er States
Sections having several projects 
ocm ru ii sated b y  fle n to e r States
Projects m der study

A n n ex  5
O U T L IN E  DEVELOPMENT  
PLAN FOR TRANSPORT  
IN FR ASTRUCTURE -  NETWORK  
OF INLAND WATERWAYS  
OF C C m jN IT Y  IN T E R E S T
Developed sections or  
under development to  
class I and above
' ■ 1 1 1  Development projects to  
class IV  and above
(1) under study
V

- 24 -
Proposal for a Council Regulation 
on financial support in the 
framework of a medium term programme 
for transport infrastructure
Explanatory Memorandum
With a view to the preparation of a medium term programme the 
Commission has already sent the following documents to the Coun­
cil :
- Report on Bottlenecks (20/6/80)
- Reports on the evaluation of Community Interest (16/9/81 and 
7/12/82)
- Experimental programme (10/12/82)
- Guidelines for a medium term policy (14/12/84).
These various reports plus the debates etc. that they have given 
to have allowed the Commission to develop a medium term programme 
comprising, in particular :
- a network of main links of Community interest,
- objectives for the improvement of the network,
- indications or guidelines concerning the projects of Community 
interest to be undertaken in the medium term.*
The programme, which is sent to the Council at the same time as 
this draft Regulation, serves as a framework for Community fi­
nancial support in order to ensure coordination and efficiency.
This programme will be revised from time to time on the basis of 
the developments of Community needs.
Article 1 sets out the basis for Community action in relation to 
the medium term transport programme. Article 2 sets out the cri­
teria for the selection of projects eligible for Community fi­
nancial support.

- 25 -
Article 3 establishes the objectives and forms of financial sup­
port envisaged.
Article 4 deals with the procedures for the introduction of a re­
quest for financial assistance and its contents.
Article 5 gives the Commission the powers to grant financial as­
sistance. This power is derived from Article 205 of the Treaty 
of Rome whose application permits the Commission to execute the 
budget. Consultation of the Committee for Transport Infrastruc­
ture is provided for in conformity with Article 5 of the Decision 
(78/172/EEC ), referring to its responsibility in all matters con­
cerning the network of Community interest, establishing that Com­
mittee.
The provisions necessary for controls and which figured in pre­
vious drafts of the Regulation on financial support are repro­
duced in Article 6.

- 26 -
Proposal for a Council Regulation on financial support within the 
framework of a medium term programme for transport infrastructure
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, 
and in particular Articles 75 and 84 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social Committee,
Whereas the realisation of the Common Transport Policy implies the setting 
up of a Community action aimed at the harmonious development of Community links,
Whereas modern transport networks based on the European level can contribute 
to the unification of the internal market and the stimulation of exchanges of 
goods, people and services between countries and regions of the Community,
Whereas the establishment of rapid and efficient Links between all regions 
of the Community is an essential condition for the reinforcement of its
economic and social unity,
Whereas the realisation of an adequate level of service and safety of these 
links and their extension would facilitate the balanced developement of 
exchanges and allow peripheral regions to overcome the handicap of enlargement 
and to participate fully in the economic and social activity of the Community 
as well as in exchanges with non-Member States,
Whereas it is necessary to take account of both the interest of users and 
requirements in the field of the environment, safety and rational use of 
energy,
Whereas the Community structural financial instruments can contribute to 
the realization of transport infrastrucutre works of Community interest,
Whereas specific financial support to transport infrastructure projects 
can provide an essential financial incitement to projects: on the one hand 
to the completion of certain projects of critical importance for the 
completion of the Community transport networks and on the other, the 
promotion and launching of major projects,
Whereas the granting of financial support should take account of the need to 
ensure good coordination in the undertaking of projects and an efficient 
timing of this completion; this makes it appropriate to award financial 
support in the framework of a programme,
Whereas it is opportune to confer on the Commission the responsibility to 
establish a programme in the light of the objectives and criteria which 
are to be defined,

- 27 -
HAS ADOPTED THIS REGULATION:
Article 1
The Community within the limits of the appropriations set aside for this 
purpose in the general budget of the European Communities, and under the 
conditions set out in the following Articles grants financial support to 
undertake transport infrastructure projects of Community interest in the 
rramework of a medium term programme and which meet the following criteria:
the improvement of facilities in corridors which include a maritime 
crossing,
- the reduction of the costs associated 
with the non-Member States concerned, 
of combined transport,
- the integration of peripheral regions
- the improvement of high-quality links 
notably high-speed rail links.with transit in possible co-operation 
notably through the encouragement
in the the Community network, 
between principal urban centres,
The medium term programme that the Commission shall draw up and revise 
periodically, includes notably:
- a network of principal links of Community interest,
- the objectives for the improvement of the network,
indications or guidelines concerning the projects of Community interest 
to be undertaken in the medium term.

-  28  -
Article 2
The eligibility for financial support of transport infrastructure projects 
will be assessed in accordance with the following criteria:
- socio-economic profitability,
- Community interest in the project and notably
the relative importance of actual or future Community traffic;
.  the importance on the axe concerned of exchanges between the 
Community and non-member states;
the importance of the reduction of the isolation of peripheral regions;
- the coherence of the project with other Community actions in the field 
of transport or other Community policies,
- the complementarity of the project with other projects undertaken at the
national level.
Article 3
1. Community financial support can be accorded to preparatory works and 
feasibility studies for projects, for possible associated works, and on the 
development of a part of the whole of the project.
2. Financial support can take the form of subsidies or any other form needed 
for the financing of a project.
3. Financial support should not exceed 50Z of the total cost of each project 
on the particular phase of the project which benefits from support.
4. In no case should the contributions from all Community budget sources 
exceed 70% of the total cost of the project.
5. A project will not receive Community financial support if it does not comply 
with the requirements of the 'public market.'
Article 4
1. Requests for financial support are to be sent to the Commission through 
the Member States or any other body qualified to undertake a project of 
Community interest.
2. Each request shall include the background information necessary and in 
particular:
- an itemised list of forecast expenditure,
- a provisional shcedule of work and financial commitments,
- information necessary for the evaluation of the Community interest of 
a project,
- a non-technical resumé of the impact of the environment (1).
3. The Member State or other bodies mentioned in paragraph 1 shall provide the 
Commission with any further information it considers necessary for assessing 
a project.
(1) Directive no. 85/337/CEE

- 29-
Article 5
The Commission, following consultation of the Transport Infrastructure 
Committee created by decision 78/174/EEC, shall decide on the attribution 
of financial support in accordance with the criteria laid down in 
Article 2. The Council will be informed of the decisions taken.

Article 6
Where a project which has received financial support has not been 
carried out as planned, or where the conditions imposed by the 
provisions governing the measure are not fulfilled, the financial 
support may be reduced or cancelled if the Commission so decides.
Any sum paid incorrectly shall be repaid to the Community by the 
beneficiary within 12 months of the date of notification of such 
decision.
Without prejudice to checks carried out by the Member States in 
accordance with national laws, regulations or administrative pro­
visions, and without prejudice to the provisions of Article 206
(a) of the Treaty 209 (c) of the Treaty, on-the-spot checks or 
enguiries in respect of projects receiving financial support 
shall be carried out by the competent authorities of the Member 
State concerned and by representatives of the Commission, or 
other persons authorized to this effect by the latter. The Com­
mission shall determine deadlines for the performance of checks 
and as a preliminary inform the Member State in order to receive 
all necessary assistance.
The purpose of these on-the-spot checks or enguiries relating to 
operations receiving financial support is to ascertain :
(a) to conformity of administrative practices with Community 
rules;
(b) the existence of supporting documents and the fact that they 
correspond;
(c) the conditions under which operations are executed and 
checked ;
(d) the conformity of the projects carried out with the condi­
tions subject to which financial support was granted.

A. The Commission may suspend payment o 
if a check reveals irregularities or 
nature or conditions of the project 
approval has not been sought.f aid in respect of an operation 
a substantial change in the 
for which the Commission's
Article 7
This Regulation shall enter into force on the day of its publicati 
in the Official Journal of the European Communities.

- 32 -
FINANCIAL RECORD
1. Budget Line concerned
Article 581: financial support for transport infrastructure projects.
2. Reference (legal base)
To be created by the proposed regulation, on the basis of articles 75 and 
84 of the Treaty.
3. Classification of the Expenditure
Non-obligatory expenditure (according to the annex of the joint declaration 
of 30.6.82)
4- Description and justification for the action
The financial support can take the form of subsidies or any other form 
required for the financing of the project.
The projects must be included in the framework of a medium term programme 
established by the Commission. Their eligibility for financial support is 
to be established on the basis of criteria which are set out in the proposed 
regulation.
The use of budget credits in the form of direct grants or reduced interest 
arrangements will be based on the benefit to the Community of an accelerated 
completion of projects of 'Community interest'.
The specific benefits for the Community vary according to the share of 
international traffic that uses the project.
5. Nature of the expenditure and method of calculation
(a) Nature of the expenditure
Subsidies to Member States or organisations undertaking projects of 
Community interest.
(b) Method of calculation
Time is necessary for governments to revise their programme in the 
light of Community priorities. It is estimated that from 1988 projects with 
an estimated cost of the order of 1 billion ECU could be the subject of 
an accelerated start thanks to capital support. The benefits to be 
achieved from this accelerated start are roughly equivalent to the 
subsidy provided.

- 33 -
Ih! r®tf of suPP°rt is based on a share of Community benefits and the 
threshold of resistance of the Member States to the acceleration of it« 
programme (the budgetary situation, notably in those States ^equirid Jo
E  « . T . ,.< i r b l; e f f o r t s  t0 maki  “p d eU y a  -  p u b u c ^ e t0
S o i l ;  v baarS ;b % t°„fe e n X 1 P 5r ’„ ed n C 2e „ . (th'  P " > ~  tM .
ihot| 1^ d®v®Lopment P^se of the programme (up to 1989), a large part of 
the limited resources available will be devoted to the co-filancinlof 
preparatory works for 3 projects. In view of the object to simulate 
activity a rate support of around 70% is desirable for preparatory works,
6- Effect of the action on intervention credits 
6.1. Timetable
Engagements Mio.ECU 1986 1987 1988 1989 1990 Later years
Crédits 85 90 27 20 20 23
8665 20 15 15 15
8730 910 11
8890 27 27 27 9
8912036 36 48
9015045 105
545 27 40 71111 134 162
7. Financing of intervention expenditure
Credits written to line 581,
8- Financial impact on staff costs and operations
Nil - staff in post.