14. 2. 90 Official Journal of the European Communities No C 34/11 
Article 12 
Decision 75/327/EEC (') is hereby repealed. 
Article 13 
1. Member States shall, after consultation with the 
Commission, bring into force the laws, regulations and 
administrative provisions necessary to comply with this 
Directive not later than 1 January 1993. 
0) OJ No L 152, 12. 6. 1975, p. 3. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 75 
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 one of the objectives of the common transport 
policy is to eliminate disparities in the conditions 
inherent in the concept of public services liable to cause 
substantial distortion in the transport market; 
Whereas the public interest of transport services may 
justify their continued operation under the concept of a 
public service; 
Whereas the arrangements for such an operation should 
be established between the competent authorities and the 
undertakings within the framework of a contract in 
order to ensure the commercial operation of the latter; The provisions adopted pursuant to the first 
subparagraph shall make express reference to this 
Directive. 
2. Member States shall forthwith inform the 
Commission thereof and communicate to the 
Commission the provisions of national law which they 
adopt in the field covered by this Directive, which 
provisions shall be communicated by the Commission to 
the Member States. 
Article 14 
This Directive is addressed to the Member States. 
obligations is no longer justifiable to meet the public 
transport needs, except for the provision of certain 
urban, suburban and regional services; 
Whereas it is therefore necessary to amend Council 
Regulation (EEC) No 1191/69 (l) to lay down the 
general rules governing the public service contracts, 
HAS ADOPTED THIS REGULATION 
Article 1 
Council Regulation (EEC) No 1191/69 is hereby 
amended as follows: 
1. paragraphs 2, 3 and 4 of Article 1 are replaced by the 
following: 
'2. When necessary in order to ensure adequate 
transport on specific routes or in specific areas 
Member States may provide for the establishment or 
continuation of public services on the basis of 
contracts to be negotiated with undertakings in 
accordance with Article 14. 
3. Nevertheless, Member States may maintain 
urban, suburban and regional services subject to the Proposal for a Council Regulation (EEC) amending Regulation (EEC) No 1191/69 on action 
by Member States concerning the obligations inherent in the concept of a public service in 
transport by rail, road and inland waterway 
COM(89) 564 final 
(Submitted by the Commission on 1 December 1989) 
(90/C 34/07) 
Whereas, in the light of the possibilities offered by such 
contracts, the continued imposition of public service (') OJ No L 156, 28. 6. 1969, p. 1. 
No C 34/12 Official Journal of the European Communities 14. 2. 90 
imposition of public service obligations referred to in 
paragraph 1. Such services shall be operated as a 
specific division meeting the following requirements: 
(a) to have separate accounts and a clear division of 
assets; 
(b) to be granted internal autonomy as regards 
current management and control over adminis­
trative and accounting matters; 
(c) to have a financial balance on the basis of 
receipts, subsidies and compensations, without 
support from or to any other operation of the 
undertaking. 
4. Financial burdens devolving on transport under­
takings by reason of the imposition of the obligation 
referred to in paragraph 3 shall be subject to compen­
sation made in accordance with common procedures 
laid down in this Regulation.'; 
2. the following paragraph 5 is added to Article 1: 
'5. For the purposes of this Regulation: 
— "Urban and suburban services" means passenger 
transport services operated under a specific fare 
system to meet the transport needs of an urban 
centre or conurbation, as well as the passenger 
transport needs between it and surrounding areas; 
— "Regional services" means transport services 
operated to meet the transport needs of a region, 
as well as the transport needs between a region 
and main transport centres.'; 
3. Article 10 (1) second subparagraph, (2) and Article 11 
(3) are deleted; 
4. Section V is replaced by the following: 
SECTION V 
Public service contracts 
Article 14 
1. "A public services contract" is a contract nego­
tiated and concluded by the Member States and 
transport undertakings in order to provide the public 
with adequate services, whilst respecting the 
autonomy and the commercial interests of the 
transport undertakings. — the provision of a transport service satisfying fixed 
standards of continuity, regularity, capacity and 
quality, 
— the operation of any additional services, 
— transport at specified rates and subject to specified 
conditions, in particular for certain categories of 
passenger or on certain routes. 
A public service contract can involve either the 
operation of a service in a way that entails economic 
disadvantages for the undertaking or the creation or 
maintenance of a transport service that otherwise 
would not be operated. 
3. A public service contract shall be agreed in 
advance and should cover, inter alia, the following 
points: 
(a) the contract period of validity, which should be 
multi annual; 
(b) the details of the service to be provided, notably 
the standards of continuity, regularity, capacity 
and quality; 
(c) the procedural rules to set or adjust the services 
fares; 
(d) the contract price, which may either be defined as 
an addition to the fare receipts — in the case 
where the undertaking is allowed to set fares 
within certain agreed limits — or be defined as 
including the fare receipts — in the case where 
the Member State retains the right to set fares; 
(e) the explicit and clear indication of the form and 
dates for paying the contract price; 
(f) the possibility of amendment to take account of 
unforeseeable changes; 
(g) provision for depreciation of the assets involved in 
the operation of the service. 
4. Where an undertaking wishes to discontinue a 
service to which a public service contract may apply 
or to introduce substantial modifications to such a 
service, the competent authorities shall be informed in 
advance and have the right to request that the 
decision be postponed for a reasonable period for 
public consultations to take place. If the competent 
authorities wish the service to be maintained, it is to 
be the subject of negotiations with a view to the 
conclusion of a public service contract. 
2. Through a public service contract the Member 
State may in particular ensure: 5. In the event of the failure of such negotiations 
or in the case of a disagreement concerning the 
14. 2. 90 Official Journal of the European Communities No C 34/13 
execution of a contract, the matter is to be referred to 
an arbitration panel designated by both parties. 
During the period of examination by the panel the 
service shall be maintained. In reaching its findings 
the panel shall notably take into account: 
— the general public interest, 
— the special characteristics of the service, 
— that the proper costs of the service have to be met. 
The conclusions of the panel, to be reached within 
three months, shall be binding on both parties. 
6. The undertaking shall be entitled to compen­
sation in accordance with the procedures laid down in 
section IV for the period prior to the conclusion of 
the contract. 
7. By 31 May each year the Member States are to 
provide the Commission with information regarding 
the public service contracts in the previous year, in 
particular: 
— a synopsis of the contents of new contracts and 
amendments, 
— the findings of the panels referred to in para­
graph 5, 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 75 
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 functioning of the internal market means 
that the efficiency of the transport infrastructure between 
the regions of the Community must be reinforced and 
increased, in particular by means of a high speed train 
network to carry persons and, where appropriate, 
freight; — an overall evaluation of the contracts that have 
expired. 
The Member States shall provide, at the 
Commission's request, any further information on the 
conditions, operations and results of public service 
contracts.'; 
5. Article 19 is replaced by the following: 
'Article 19 
1. This Regulation shall apply to railway under­
takings falling within the scope of the Council 
Directive on the development of the Community 
railways (1). 
2. As regards other transport undertakings this 
Regulation shall not apply to undertakings mainly 
providing transport services of a local or regional 
character.' 
Article 2 
This Regulation shall enter into force on 1 January 1992. 
(l) See the proposal for a Council Directive on page 8 of this 
Official Journal. 
Whereas the Commission submitted to the Council in 
1986 a report entitled 'Towards a European high speed 
rail network (')'; whereas the European Parliament has 
supported Community action in this sector (2); whereas 
the community of European railways presented at the 
beginning of 1989 a 'proposal for a European high speed 
network'; 
Whereas the current saturation of airspace and of 
numerous road axes is worrying and any increase in air 
and road capacity would require heavy investment; 
Whereas the Community must give priority to the devel­
opment of technologies that are environmentally 
friendly; 
Whereas the rail infrastructure meets this requirement 
and would benefit from the development of high speed 
techniques; 
O COM(86) 341 final. 
O Starita report PE 109.323. Proposal for a Council Decision concerning the establishing of a network of high speed trains 
COM(89) 564 final 
(Submitted by the Commission on 1 December 1989) 
(90/C 34/08)