Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the widespread introduction and interoperability of electronic road toll systems in the Community

(presented by the Commission)

TABLE OF CONTENTS

PART I: MORE EFFECTIVE FINANCIAL AND MANAGEMENT INSTRUMENTS FOR DEVELOPING THE TRANS-EUROPEAN TRANSPORT NETWORK

1. Financing the trans-European transport network: Diagnosis of the current situation

1.1. An under-funded network

1.2. Public funds in need of better coordination

1.3. Highly selective private investment

1.4. Exclusively private funding

1.5. Joint public/private funding

1.6. The funding requires a more appropriate framework

2. Resolving the issue

3. Towards better coordination and synergy based on new structures

3.1. Funds

3.2. Structures

3.3. Setting up transnational legal entities to coordinate individual projects

3.4. The development of new Community funding instruments

3.5. EU guarantees for the political risks of the trans-European transport network

PART II - TOWARDS A EUROPEAN ELECTRONIC TOLL SERVICE

1. Introduction

2. Update on standardisation work

3. Access to toll systems in new Member States, and the situation for heavy goods vehicles

4. Aim of the Directive

5. Achieving that aim

6. Combining satellite positioning and mobile communications with microwave technologies in the short and medium term, but opting exclusively for the more modern technology in the long term

7. The long-term technical solution for deploying the European service: imposition of the satellite solution from 2008 for new systems and from 2012 generally

8. Timetable for implementing the European service

9. Implementation of the European service: a Regulatory Committee

EXPLANATORY MEMORANDUM

1. INTRODUCTION

Electronic road toll systems first appeared in Europe in the early 1990s on motorways operated under a concession where the toll served to finance motorway construction and maintenance. The main objective of such systems is to speed up toll collection, thereby increasing the capacity of the motorway. Various systems were introduced, at local and then at national level, but these systems are mutually incompatible. This has created problems for motorists, who have to affix several tags to the windscreen of their vehicle (sometimes even within a single conurbation) in order to subscribe to the various systems. Italy, Portugal, France, Switzerland, Slovenia and Norway have national systems, but they are incompatible. In view of the growth in international traffic, it is now desirable for these systems to be interoperable at European level.

Moreover, particularly at peak periods, but also more persistently at certain very busy points in the European road network, the collection of tolls causes congestion, delays, accidents and incidents which are detrimental both to road users and to the environment. Electronic tolls put the users and their vehicles at the centre of the transport system. They are an excellent tool for reducing congestion, provided that a sufficient number of equipped lanes are available at toll stations and that a high proportion of road users take out a subscription (and therefore that a large number of vehicles are fitted with the equipment). They allow subscribers to be separated from occasional users as they arrive at or approach the toll stations. The subscribers can then enter dedicated lanes where they will not have to stop or perform any transactions but simply continue to drive at a slow speed. This is the case even if the lane is equipped with automatic barriers, as the dimensions have been designed for this purpose. While the maximum flow for a lane equipped with a credit card machine or a manual toll is 120 vehicles per hour, a lane with an electronic toll can handle between 200 and 300 vehicles per hour, depending on its configuration.

By eliminating these bottlenecks and making the traffic flow more smoothly, electronic tolls also help reduce the number of accidents and thus improve road safety. By limiting cash transactions at toll stations, they also reduce the risks associated with the transport of money.

Electronic tolls are the potential key to developing the information society in road transport, as the same equipment installed in vehicles will allow value-added telematic services and safety systems to be deployed for travellers: an automatic emergency call in the event of an accident, real-time information on traffic conditions or journey times etc. They therefore help to strengthen the European electronics industry, which is at the forefront of this technology and is calling for the implementation of technical standards in order to avoid market fragmentation. In addition, vehicle manufacturers will also be able to incorporate electronic toll equipment into their new vehicles.

2. UPDATE ON STANDARDISATION WORK

All existing electronic toll systems are based on short-range microwave technology, many variants of which are available on the market. The European Committee for Standardisation (CEN) worked on standards for several years, and in January 2003 it adopted a draft definitive standard. This draft nonetheless contains two variants.

In 1997 CEN adopted pre-standards, but these did not ensure compatibility between systems and left scope for varying interpretations. As a result, Europe now has the two variants referred to above. In addition to these pre-standards, there are also many older but widely deployed systems, some of which have a large number of subscribers.

A European directive is therefore needed to ensure migration towards the future interoperability of the various systems from the user's perspective, because the Member States will otherwise continue to adopt technically incompatible national electronic toll systems, thereby creating additional difficulties for international road traffic and hampering the smooth operation of the internal market. Without this directive, drivers will have to equip their vehicles with several country-specific boxes to ensure problem-free driving throughout the European road network.

This Directive is based on preparatory work carried out under the Research and Development Framework Programmes and in the context of the trans-European networks.

3. ACCESS TO TOLL SYSTEMS IN NEW MEMBER STATES, AND THE SITUATION FOR HEAVY GOODS VEHICLES

Electronic toll systems first appeared in just a few countries, but they are now spreading throughout Europe. A number of European countries have recently introduced, or are planning to introduce, electronic tolls as a tool of traffic regulation policy, either in urban areas (Netherlands, United Kingdom) or for certain categories of vehicles (heavy goods vehicles in Germany, Austria and Switzerland). Some of these countries are moving towards more recent technologies, such as satellite positioning (global navigation satellite system (GNSS): GPS, then Galileo) in conjunction with mobile communications (using the GSM/GPRS standard). This choice eliminates the need for costly investments in roadside equipment, and allows the most advanced technology to be used, but depends on further developments in satellite navigation systems, in particular Galileo. These countries are thereby opting for a reference technology in the future development of road transport. Without waiting for the operational implementation of Galileo in 2008, the EGNOS precursor system will, as of 2004, enable a higher degree of positioning accuracy than that given by GPS alone. Satellite positioning in conjunction with mobile communications is also the only solution that allows easy application of "zone tolls", i.e. tolls applied to vehicles entering or leaving a given geographic area (e.g. a conurbation). However, other countries have taken a more conservative approach, depending on their road-charging policies and the topology of their network, and are continuing to opt for microwave technology.

There are no plans in the Member States to introduce new toll systems using any technology other than that based on microwaves or the GPS/GSM combination.

Thus electronic tolls in Europe will in future be based on the multiple use of three technologies, which could cause real difficulties for travellers. Take the situation of heavy goods vehicles (HGVs) for example. For some years HGVs have had to pay a tax in Switzerland, a country through which a high proportion of transalpine road traffic has to pass. To that end they have to install a complex device in the cab, which must be visible from the outside so that police and customs officers can see that it is working and being used correctly. The Swiss system combines the use of the DSRC microwave system and GPS. At the end of May 2002, Austria announced its decision to implement a different system, based solely on DSRC, to apply charges to HGVs. Germany announced a similar decision in June 2002, with the combined use of the three technologies. The situation will become even more complicated when other European countries such as the Netherlands and the United Kingdom introduce HGV charges, or countries like France allow HGVs to use their existing national electronic toll systems (Italy already allows this). Can it be acceptable that HGV drivers will eventually have to accommodate half a dozen electronic boxes (each measuring 1.5-2.5 dm³ and weighing 1-2 kg) in their cab merely in order to pay toll fees? Such a situation would also be unacceptable on account of the price of the equipment. There is thus an urgent need for boxes capable of reading all the systems used in Europe to be made available to drivers who engage in international transport. The industry believes this can be done and that it will not involve any major increase in the price of the box. Indeed, some manufacturers believe the current price of EUR20 for a box capable of communicating with one single microwave system would increase to EUR25 for an interoperable box capable of reading all the microwave systems in use in the Union. The real increase in the price of boxes will be linked to the addition of the satellite/mobile communications system. However, the price of a box with satellite communication would not increase significantly through the addition of microwave-reading equipment.

Moreover, as the methods for operating these boxes are different, there is a growing risk that HGV drivers will make mistakes, whereby they may accidentally break the law (e.g. by incorrectly declaring the trailer or the number of axles), which will create difficult situations for users and infrastructure operators. Action therefore needs to be taken to harmonise and rationalise boxes.

4. AIM OF THE DIRECTIVE

This Directive was announced in the White Paper European transport policy for 2010: time to decide. It lays down the conditions necessary for a European electronic toll service to be put in place as soon as possible on all parts of the road network subject to tolls. This service will be based on the principle of "one contract per customer, one box per vehicle".

The Directive does not deal with road-charging policy as such and does not prejudge possible future road-charging policy options. On the contrary, the technical solutions adopted mean that all the policies currently planned at EU and Member State level can be implemented. And by ensuring the interoperability of toll systems in the internal market, the Directive will facilitate the implementation of a Europe-wide infrastructure-charging policy. The recommended technologies can cover all types of infrastructure (motorways, roads, bridges, tunnels, etc.) and vehicles (HGV, light vehicles, motorbikes, etc.).

5. ACHIEVING THAT AIM

Motorway operating companies have invested large sums of money (several hundred million euros per network) to install systems on their networks which were originally intended to provide a better service to the drivers of light vehicles. Account must be taken of these investments and their amortisation (in accounting and technical terms) so as to migrate progressively towards interoperable systems as part of the "European service". It will be possible for existing national and local systems to be maintained alongside the European service for local use until they are decommissioned, though the obligation for operators to make interoperable receivers available to users who want them will make an appreciable contribution towards easing this situation for users.

In this way progress can be made towards the interoperability of existing systems. However, some of the countries referred to above want to introduce an electronic toll system for HGVs in 2003 or 2004. Certain cities, such as Rome and London, have decided to install a toll system to control vehicle access to the city centre. Technical guidelines therefore need to be laid down now to ensure the interoperability of future systems. Moreover, the market is in favour of establishing a reference system for the future.

In response to these twin problems, the European electronic toll service will be based on a short-term solution (until 2005) taking account of existing systems, and then on a long-term solution (2008-2012), decided on and presented below.

The Commission is asking manufacturers to pursue action to lead as quickly as possible to the adoption of common standards for the three technologies.

6. COMBINING SATELLITE POSITIONING AND MOBILE COMMUNICATIONS WITH MICROWAVE TECHNOLOGIES IN THE SHORT AND MEDIUM TERM, BUT OPTING EXCLUSIVELY FOR THE MORE MODERN TECHNOLOGY IN THE LONG TERM

This combination, presented in Article 2, is intended to allow charging on the road network without having to build new stations. The widespread introduction of road-charging policies requires new technological solutions capable of covering all road infrastructure. Toll lanes cannot be built on all parts of the road network, including town centres, for financial, environmental and safety reasons.

This proposal is based on the use of new technologies that are already available: the GNSS/GSM combination, together with microwave technology, which is already in widespread use in the Union. These three technologies are the only ones currently being considered for new toll systems in Europe.

The use of satellite positioning and mobile communications technologies is advocated for the deployment of the European electronic toll service as well as for all new national systems, these technologies being more flexible and better suited to the new Community charging policies. Moreover, they are a component of many active safety systems, which manufacturers are starting to install in their vehicles. However, operators who want to use microwave technology for new systems will be allowed to do so until 2008.

This choice safeguards the continuity of investments which have already been made in several European countries, whilst taking into account the fact that the qualities of the new technologies will inevitably dominate in the near future, especially as they will open the door to the new value-added services aimed at travellers which were mentioned in the introduction. This choice also gives operators the freedom to choose the best solution for their specific problem, whilst ensuring the conditions necessary for the deployment of the European electronic toll service.

7. THE LONG-TERM TECHNICAL SOLUTION FOR DEPLOYING THE EUROPEAN SERVICE: IMPOSITION OF THE SATELLITE SOLUTION FROM 2008 FOR NEW SYSTEMS AND FROM 2012 GENERALLY

In 2008, microwave technology, a product of the 1970s, will be over 30 years old, and will have been left behind by new technological developments, even if it is still in use on the motorway networks. Satellite technology, on the other hand, boosted by the full implementation of Galileo in 2008, will have matured and had the time not only to prove itself but also to acquire the necessary experience to be able to support the European electronic toll service by itself. In particular, the difficult problem of fraud prevention, which is currently handled by means of complex short-range roadside-vehicle communication, should become easier to deal with thanks to the emergence of new technological solutions.

There is also a risk that between now and 2008 there may be further attempts to introduce new microwave systems, creating more problems of technical interoperability.

That is why the Directive stipulates that in 2008 the satellite solution involving the combination of satellite positioning and mobile communications must be adopted, in preference to microwave technology, for all new systems brought into service on or after that date as part of the European electronic toll service. To safeguard investments recently planned or made in certain countries, notably Austria, Spain, France, Greece, Portugal and Italy, microwave systems which are still in service may nonetheless continue to be used, though a migration strategy will have to be drawn up for 2010 in all the countries which continue to use them. Migration will have to be completed by 2012.

The Commission will have to produce a report by 31 December 2007 to assess whether the problems in evidence today regarding the utilisation of the satellite solution have been properly dealt with. If this report, drawn up in collaboration with the Electronic Toll Committee, shows that systems based on satellite and mobile communications technology have still not solved all the utilisation problems, the Commission will put forward a proposal to allow microwave systems to continue to be used alongside satellite/mobile communications systems.

It should be noted that adoption of the technical solution based on satellite technology and mobile communications technology will also mean the disappearance of toll barriers for the majority of users, who will be able to pay without stopping. A limited number of installations will remain for occasional users and those without the requisite equipment.

In this context, it is very important for manufacturers to ensure that the standardisation work in the European standardisation bodies is completed not just for microwave technology but also, and above all, for technologies based on satellite and mobile communications technology.

8. TIMETABLE FOR IMPLEMENTING THE EUROPEAN SERVICE

The technical and contractual arrangements for the full deployment of the European service on the technical bases described above will be examined by the Committee set up pursuant to Article 5.

The service will be deployed in two stages:

- from 2005 for electronic toll payments by HGVs, buses and coaches,

- from 2010 for cars.

By 2010, technological progress will have made it possible to install in all four-wheeled vehicles equipment communicating with the outside world via microwave, GSM/GPRS and GNSS interfaces supporting a range of telematic services, including electronic tolls. This technological leap, which has already started, will bring the cost of equipping a vehicle down to the current cost of a microwave tag (between 20 and 50 euros).

The European service will permit the full implementation of all HGV-charging and urban congestion-charging policies which the European Union or the Member States wish to introduce. In addition to being more appropriate for the "zone tolls" defined above, satellite positioning in conjunction with mobile communications avoids having to install equipment at a later date on road networks which were not built with space for toll plazas.

By 2010, interoperability between national electronic toll systems will have been achieved by the deployment of a "European service" offered to all types of customer.

9. IMPLEMENTATION OF THE EUROPEAN SERVICE: A REGULATORY COMMITTEE

The essential principles of the European service are described in Article 3. As the service will be offered by all toll infrastructure managers, it puts the traveller at the centre of the road transport system. Open to all and available throughout the road network by means of a single subscription contract, it will provide a single interface between the customer and infrastructure managers, in accordance with the basic principles of European legislation, particularly as regards the protection of privacy and personal data.

A precise definition is required of the details of the European service and of a large number of accompanying technical measures. For example, a memorandum of understanding needs to be established between European infrastructure managers for the deployment of the service and the establishment of a netting system.

The Commission is responsible for defining the "European service" and is taking the necessary technical decisions to this end, in accordance with the committee procedure referred to in Article 5 of the Directive. Article 5 of the proposed Directive sets up a committee to assist the Commission, composed of representatives of the Member States with practical experience in the fields of electronic tolls and road management. Such a committee does not currently exist, and will therefore have to be set up. It will base its work on the findings of research projects conducted under the Research and Development Framework Programme and in the context of the trans-European networks. Preparatory work has already been carried out under the auspices of the Commission, involving national authorities, infrastructure managers and manufacturers.

The following issues inter alia will have to be addressed:

- precise definition of the service offered: in particular functional and technical specifications of the service, the quality of the service and its level of deployment at toll stations with a view to limiting queues, slow-moving traffic and incidents of all kinds resulting from toll collection. Payment methods relating to the subscription contract, and after-sales service, etc., will also be addressed;

- definition of the electronic toll applications: i.e. a single method of using the electronic toll equipment. For example, smart cards used as bank cards and smart cards used for health and health insurance purposes are technically compatible, but only the former enable you to withdraw bank notes from an automatic cash dispenser. The same type of problem arises here;

- launching and following up technical harmonisation activities with the European standardisation bodies;

- any technical additions to the standards or pre-standards used and which ensure interoperability; procedures for taking account of technological developments, in particular the development of mobile communications;

- harmonisation of electronic toll procedures between operators: vehicle classification, signs on toll gates, occasional users without the necessary equipment;

- specifications for incorporating equipment into vehicles;

- procedures for approving, at European level, on-board equipment, roadside equipment and the way equipment is incorporated into vehicles, particularly from the point of view of road safety;

- validation of the chosen technical solutions vis-à-vis the European rules protecting the freedoms and fundamental rights of individuals, including their privacy. In particular, conformity will have to be ensured with Directives 95/46/EC [1] and 2002/58/EC [2];

[1] Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data.

[2] Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications).

- procedures for dealing with operating anomalies (equipment breakdown, intentional or unintentional incorrect use, incidents, etc.), essentially in the international context where the customer is from a country other than the country of payment;

- definition of a memorandum of understanding between road operators enabling the service to be implemented on the European road network, and a single contract for customers. It should be possible to extend this memorandum of understanding at a later date to banks, whose payment cards will be associated with electronic toll systems.

The Commission and the committee will seek technical advice from groups of experts appointed for this purpose. In particular, the Commission will work with a group of experts made up of representatives of operators of the "European electronic toll service", the electronics and motor vehicle industries, and users of the service, professionals and individuals These groups of experts can be given the task of drafting the preparatory documents for the work of the committee. The Commission will also be able to seek the opinion of other committees or working parties, including the Working Party on the Protection of Individuals with regard to the Processing of Personal Data set up by Article 29 of Directive 95/46/EC.

2003/0081 (COD)

Proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the widespread introduction and interoperability of electronic road toll systems in the Community

(text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 71(1) thereof,

Having regard to the proposal from the Commission, [3]

[3] OJ C [...], [...], p. [...].

Having regard to the opinion of the European Economic and Social Committee, [4]

[4] OJ C [...], [...], p. [...].

Having regard to the opinion of the Committee of the Regions, [5]

[5] OJ C [...], [...], p. [...].

Acting in accordance with the procedure laid down in Article 251 of the Treaty,

Whereas:

(1) By its resolution of 17 June 1997 on the development of telematics in road transport, in particular with respect to electronic fee collection (EFC), [6] the Council called on the Commission and Member States to develop a strategy for the convergence of EFC systems in order to achieve an appropriate level of interoperability at a European level, The communication to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on interoperable electronic fee collection systems in Europe [7] presented the first stage of this strategy.

[6] OJ C 194, 25.6.1997, p. 5.

[7] COM (1998) 795 final.

(2) The majority of European States which have installed electronic toll systems to finance road infrastructure costs or electronic systems to collect road use fees (jointly referred to hereinafter as "electronic toll systems") use short-range microwave technology and frequencies close to 5.8 GHz, but these systems are currently mutually incompatible. The work on microwave technology undertaken by the European Committee for Standardisation (CEN) resulted in January 2003 in the preparation of technical standards making for the compatibility of 5.8 GHz microwave electronic toll systems, following the adoption of pre-standards in 1997. [8] However, these technical standards encompass two compatible variants which are not totally compatible. They are based on the Open Systems Interconnection (OSI) [9] model defined by the International Standardisation Organisation for communication between computer systems.

[8] The CEN pre-standards on 5.8 GHz short-range microwave transmission are known under the technical name of Dedicated Short-Range Communications (DSRC).

[9] Reference to be added.

(3) Manufacturers and infrastructure managers have nonetheless agreed, within the Member States of the European Union, to develop interoperable products based on the pre-standards adopted in 1997, favouring the option of high-speed transmission between roadside units and on-board units. This choice should mean that new electronic toll systems can be introduced that will be technically compatible with the latest systems installed in the Community (in France, Spain and Austria).

(4) It is essential that this standardisation work be completed as quickly as possible to establish technical standards ensuring the compatibility of electronic toll systems based on microwave technology. Other standardisation work concerning a combination of satellite and mobile communications technology for electronic toll systems should also be completed rapidly in order to avoid further fragmentation of the market.

(5) It is necessary to provide for the widespread deployment of electronic toll systems in the Member States and neighbouring countries, and the need is arising to have interoperable systems suited to the future development of road-charging policy at Community level.

(6) Application of the new satellite positioning (GNSS) and mobile communications (GSM/GPRS) technologies to electronic toll systems will serve to meet the requirements of the new road-charging policies planned at Community and Member State level. These technologies enable the number of kilometres covered per category of road to be counted without requiring costly investment in infrastructure equipment or the construction of new toll stations. They also open the door to new safety and information services for travellers, such as the automatic alarm triggered by a vehicle involved in an accident and indicating its position, and real-time information on traffic conditions, traffic levels and journey times. With regard to satellite positioning, the Galileo project launched by the European Union in 2002 will, as of 2008, provide information of higher quality than that provided by the current GPS system and which is optimal for road telematic services. The EGNOS precursor system will already be operational in 2004 providing similar results. However, these innovative systems could raise problems concerning the reliability of checks and with regard to fraud prevention.

(7) The proliferation of technologies already in use or planned for electronic toll systems in the coming years (mainly 5.8 GHz microwave, satellite positioning and mobile communications) and the proliferation of specifications imposed by the Member States and neighbouring countries for their electronic toll systems may compromise both the smooth operation of the internal market and transport policy objectives. Such a situation is liable to lead in future to the proliferation of incompatible and expensive electronic boxes in the driving cabs of heavy goods vehicles, and to drivers making mistakes when using them or committing involuntary fraud.

(8) Artificial barriers to the free movement of persons and goods between the Member States need to be removed, while still allowing the Member States and the Union to implement a variety of road-charging policies for all types of vehicles at local, national or international level. The equipment installed in vehicles must allow such road-charging policies to be implemented in accordance with the principles of non-discrimination between the citizens of all European Union countries. The interoperability of electronic toll systems at Community level therefore needs to be ensured as soon as possible.

(9) Drivers are legitimately concerned to see improved quality of service on the road infrastructure, particular in terms of safety, as well as a substantial reduction in the length of queues at toll stations, especially on busy days and at certain particularly congested points in the road network. The definition of the European electronic toll service needs to address that concern.

(10) Electronic toll systems contribute significantly to reducing the risk of accidents, and thus increasing traveller safety, at toll gates, to reducing the number of cash transactions and to reducing congestion at toll gates, especially at busy times. They also preclude the negative environmental impact of installing new toll gates or expanding existing toll stations.

(11) The introduction of electronic toll systems will entail the processing of personal data. Such processing needs to be carried out in accordance with European rules, as set out inter alia in Directive 95/46/EC and Directive 2002/58/EC. The right to protection of personal data is explicitly recognised by Article 8 of the Charter of Fundamental Rights of the European Union.

(12) Given that the objectives of the proposed action, including the interoperability of toll systems in the internal market and the introduction of a European electronic toll service covering the entire Community road network on which tolls are charged, cannot be achieved sufficiently by the Member States and may therefore be better achieved, by reason of their European dimension, at Community level, the Community may take measures, in accordance with the principle of subsidiarity established in Article 5 of the Treaty. This Directive does not go beyond what is necessary in order to achieve these objectives, and is therefore in accordance with the principle of proportionality as set out in the said Article.

(13) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission, [10]

[10] OJ L 184, 17.7.1999, p. 23.

HAVE ADOPTED THIS DIRECTIVE:

Article 1 Objective and scope

This Directive prescribes the conditions necessary to ensure the widespread introduction and interoperability of electronic road toll systems in the Community. It applies to the electronic collection of all types of road fees, on all parts of the Community road network, urban and interurban, motorways, major and minor roads, and various structures such as tunnels, bridges or ferries.

To achieve the objective set in the first paragraph, a European electronic toll service shall be created. This service must ensure the interoperability, for users, of the electronic toll systems that have already been introduced at national or regional level by the Member States and of those to be introduced in future throughout the Union's territory.

Article 2 Technological solutions

1. All new electronic toll systems brought into service on or after 1 January 2005 and intended for use by all categories of heavy goods vehicles and/or buses and coaches shall, for carrying out electronic toll transactions, use one or more of the following technologies:

(a) satellite positioning;

(b) mobile communications using the GSM-GPRS standard (reference GSM TS 03.60/23.060);

(c) 5.8 GHz microwave technology.

2. A European electronic toll service shall be set up pursuant to Article 3 on 1 January 2005. As of this date, operators must make available to interested users on-board equipment which is suitable for use with all electronic toll systems in service in the Union and in all types of vehicle, in accordance with the timetable set out in Article 3(3), and which is interoperable and capable of communicating with all the systems operating in the territory of the Union.

3. It shall also be possible to link this on-board equipment to the vehicle's electronic tachograph for the purposes of calculating the fees due.

4. As of 1 January 2008, all new systems brought into service as part of the European electronic toll service referred to in Article 3 shall use only the satellite positioning and mobile communications technologies referred to in Article 2(1).

5. Systems brought into service as part of the European electronic toll service before 1 January 2008 must have abandoned the 5.8 GHz technology by 1 January 2012. A migration strategy for such systems must be formulated and implemented between 1 January 2008 and 1 January 2012.

6. To satisfy itself that satellite and mobile communications technology meets the needs of the operators of electronic toll systems, the Commission shall, by 31 December 2007, present a report drawn up with the assistance of the Electronic Toll Committee and, if necessary, a proposal to extend the period of use of microwave systems.

7. Member States shall take the necessary measures to increase the use of electronic toll systems. They shall ensure inter alia that at least 50% of toll lanes in each toll station are equipped with electronic toll systems by 2005 at the latest.

8. Member States shall ensure that processing of personal data necessary for the operation of the European electronic toll service is carried out in accordance with the European rules protecting the freedoms and fundamental rights of individuals, including Directive 95/46/EC and Directive 2002/58/EC.

Article 3 Setting-up of a European electronic toll service

1. A "European electronic toll service" shall be set up which encompasses all road infrastructure in the Community on which tolls or usage fees are collected. A single subscription contract shall give access to the service on the whole of this network and subscriptions shall be available from the manager of any part of the network.

2. The European electronic toll service shall be independent of the level of charges and the purpose for which such charges are levied. It shall concern only the method of collecting tolls or fees. The service shall be the same irrespective of the place of registration of the vehicle, the nationality of the subscriber, the nationality of the operator who issued the subscription, and the zone or point on the road network in respect of which the toll is due.

3. All network managers concerned must offer the European service to their customers according to the following timetable:

(a) for all vehicles exceeding 3.5 tonnes and vehicles carrying more than nine passengers (driver + 8), as of 1 January 2005,

(b) for all other types of vehicle, as of 1 January 2010 at the latest.

Article 4 Features of the European electronic toll service

1. The European electronic toll service shall encompass the following:

(a) functional and technical specifications of the service, the quality of the service and its level of deployment at toll stations with a view to limiting queues, slow-moving traffic and incidents of all kinds resulting from toll collection;

(b) launching and following up technical harmonisation activities with the European standardisation bodies

(c) any technical additions to the standards or pre-standards used and which ensure interoperability; procedures for taking account of technological developments, in particular the development of mobile communications, with the aim of updating the list of technologies on which the European electronic toll service is based;

(d) specifications for integrating equipment into vehicles;

(e) procedures for approving, at European level, on-board equipment, roadside equipment and the way equipment is incorporated into vehicles, particularly from the point of view of road safety;

(f) classification of vehicles;

(g) transactional models;

(h) a memorandum of understanding between the managers of the road network concerned enabling the service to be implemented on the European road network, and a single contract for customers;

(i) handling of special cases, such as occasional users and any type of malfunction;

(j) validation of the chosen technical solutions vis-à-vis the European rules protecting the freedoms and fundamental rights of individuals, including their privacy. In particular, conformity will have to be ensured with Directive 1995/46/EC and Directive 2002/58/EC.

2. The European electronic toll system shall employ the technical solutions referred to in Article 2.

3. Technical decisions relating to the definition of the European electronic toll service shall be taken by the Commission in accordance with the procedure stipulated in Article 5(2).

4. The Commission shall, in accordance with the procedure laid down by Directive 98/34/EC, ask the European standardisation bodies, and in particular the European Committee for Standardisation, to make every necessary effort rapidly to adopt standards applicable to electronic toll systems, particularly with regard to microwave technology, and systems using satellite positioning and mobile communications technology.

5. Equipment for the European electronic toll service must comply in particular with the requirements of Directives 1999/5/EC (R&TTE) and 89/336/EC (EMC).

Article 5 Committee

The Commission shall be assisted by an Electronic Toll Committee composed of representatives of the Member States and chaired by the representative of the Commission.

Whenever reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC [11] shall apply, subject to the provisions of Article 8 thereof.

[11] OJ L 184, 17.7.1999, p. 23.

(The period provided for in Article 5(6) of Decision 1999/468/EC is hereby set at three months.)

The Committee shall adopt its rules of procedure.

Article 6

Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive not later than 30 June 2004. They shall forthwith inform the Commission thereof.

When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Article 7

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Article 8

This Directive is addressed to the Member States.

Done at Brussels, [...]

For the European Parliament For the Council

The President The President

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Energy and Transport

Activit(y/ies): Sustainable mobility policy

Title of action: Directive of the European Parliament and the Council on the widespread introduction and interoperability of electronic road toll systems in the community

1. BUDGET LINE(S) + HEADING(S)

B2-7040 A: Sustainable mobility policy - Expenditure on administrative management (for 2003)

06 01 04 03 Sustainable mobility policy - Expenditure on administrative management (from 2004)

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): EUR million for commitment: none

2.2. Period of application: yearly

Commencing in 2003 and ending in about 2009

2.3. Overall multiannual estimate of expenditure:

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to three decimal places)

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(b) Technical and administrative assistance and support expenditure (see point 6.1.2)

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(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

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2.4. Compatibility with financial programming and financial perspective

XX Proposal compatible with existing financial programming.

This proposal will entail reprogramming of the relevant heading in the financial perspective.

This may require application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue [12]

[12] For further information, see separate explanatory note.

XX Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

OR

Proposal has financial impact - the effect on revenue is as follows:

(NB All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.)

(EUR million to one decimal place)

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(Please specify each budget line involved, adding the appropriate number of rows to the table if there is an effect on more than one budget line.)

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Article 71(1) of the Treaty

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention [13]

[13] For further information, see separate explanatory note.

5.1.1. Objectives pursued

For several years, the Commission has been encouraging the Member States to harmonise their projects in this field in order to avoid the creation of as many incompatible national systems as there are Member States, with each system requiring the installation of special electronic equipment in vehicles. Despite the many millions of euros invested in the research and development framework programmes and in the Euro-regional projects, this strategy has failed. Proof of this came in May 2002 when Germany and Austria simultaneously decided to adopt incompatible national systems.

The Directive creates the conditions necessary for implementing a European electronic toll service based on the principle of one single contract and one piece of on-board vehicle equipment giving access to the entire toll network in the Community.

The service is based on two technologies:

- the 5.8 GHz microwave systems used today on European toll motorways;

- satellite positioning in conjunction with mobile communications, an innovative solution based in the long run on Galileo, and the only one enabling the Commission and the Member States to implement the new road-charging policies they favour in order to manage demand more effectively, improve safety and help traffic flow more freely throughout the primary urban and interurban network. For the future, the Directive advocates the use of this second solution in preference to the first.

The Directive sets up an Electronic Toll Committee responsible, in consultation with the Member States, for handling all technical and contractual matters necessary for the implementation of the European service.

5.1.2. Measures taken in connection with ex ante evaluation

Not applicable

5.1.3. Measures taken following ex post evaluation

Not applicable

5.2. Action envisaged and budget intervention arrangements

A precise definition is required of the details of the European service and of a large number of accompanying technical measures. For example, a memorandum of understanding needs to be established between European infrastructure managers for the deployment of the service and the establishment of a netting system.

To that end, Article 5 of the proposed Directive provides for a committee of representatives of the Member States with practical experience in the fields of electronic tolls and road management, whose technical skills can help the Commission decide on a properly informed basis. Such a committee does not currently exist, and will therefore have to be set up. It will base its work on the findings of research projects conducted under the Research and Development Framework Programme and in the context of the trans-European networks. Preparatory work has already been carried out under the auspices of the Commission, involving national authorities, infrastructure managers and equipment manufacturers.

The Commission will refer the matters listed below (and possibly other matters) to the Committee:

- Precise definition of the service offered: in particular functional and technical specifications of the service, the quality of the service and its level of deployment at toll stations with a view to limiting queues, slow-moving traffic and incidents of all kinds resulting from toll collection. Payment methods relating to the subscription contract, and after-sales service, etc., will also be addressed.

- Definition of the "electronic toll applications": i.e. a single method of using the electronic toll equipment. For example, smart cards used as bank cards and smart cards used for health and health insurance purposes are technically compatible, but only the former enable you to withdraw bank notes from an automatic cash dispenser. The same type of problem is involved here.

- Launching and following up technical harmonisation activities with the European standardisation bodies.

- Any technical additions to the standards or pre-standards used and which ensure interoperability; procedures for taking account of technological developments, in particular the development of mobile communications.

- Harmonisation of electronic toll procedures between operators: vehicle classification, signs on toll gates, occasional users without the necessary equipment.

- Specifications for incorporating equipment into vehicles.

- Procedures for approving, at European level, on-board equipment, roadside equipment and the way equipment is incorporated into vehicles, particularly from the point of view of road safety

- Validation of the chosen technical solutions vis-à-vis the European rules protecting the freedoms and fundamental rights of individuals, including their privacy. In particular, conformity will have to be ensured with Directives 95/46/EC [14] and 2002/58/EC [15]

[14] Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data.

[15] Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications).

- Procedures for dealing with operating anomalies (equipment breakdown, intentional or unintentional incorrect use, incidents, etc.), essentially in the international situation where the customer is from a country other than the country of payment.

- Formulation of a memorandum of understanding between operators enabling the service to be implemented on the European road network, and a single contract for customers. It will have to be possible to extend this memorandum of understanding later to banks, whose payment cards will be associated with electronic toll systems.

The budget requested will cover all expenditure on studies needed to underpin the Committee's work.

5.3. Methods of implementation

This work will be carried out by groups of outside experts chosen jointly in collaboration with the Committee and paid by the Commission, which will be responsible for monitoring the groups. These experts will be selected by invitation to tender.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

(The method of calculating the total amounts set out in the table below must be explained by the breakdown in Table 6.2. )

6.1.1. Financial intervention

Commitments (in EUR million to three decimal places)

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6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period) [16]: None

[16] For further information, see separate explanatory note.

(Where there is more than one action, give sufficient detail of the specific measures to be taken for each one to allow the volume and costs of the outputs to be estimated.)

Commitments (in EUR million to three decimal places)

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If necessary explain the method of calculation

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

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7.2. Overall financial impact of human resources

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The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

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The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

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The needs in terms of human and administrative resources shall be covered within the allocation granted to the managing DG in the framework of the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

The Electronic Toll Committee's work will be monitored according to its work programme and the associated timetable (as detailed at its initial meetings) for tackling the objectives of the Directive. The first of these objectives is to introduce the European service for heavy goods vehicles across the entire toll road network in the Community by 1 January 2005. Monitoring of planning operations will allow checks to be made that work is proceeding as required.

The following service deployment indicators will then be defined: number of lanes in each toll station equipped for the service, number of subscriber points, etc. (to be specified in consultation with the Committee). The service will be put in place in 2004, at which point the indicators will be measured by a direct survey of the Member States.

8.2. Arrangements and schedule for the planned evaluation

A planning review of the Committee's work will take place every three months.

For the purposes of deploying the service, the measures based on the indicators defined in collaboration with the Committee will be updated initially every three months, and then every month from the second half of 2004.

An ex post assessment will take place in March 2005 to check that the whole of the service is functioning properly. This assessment will be contracted out to an external bureau selected by invitation to tender. Its aim will be to check that the service has been deployed in accordance with the objective and, above all, to canvass the views of the customers concerned with a view to measuring levels of customer satisfaction and further developing the European service prior to its extension to motor vehicles in general. It will be possible for this study to be conducted in two stages: the first after three months (March 2005) and the second once the service has been in operation for a year (January 2006).

9. ANTI-FRAUD MEASURES

Not applicable

IMPACT ASSESSMENT FORM THE IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

Title of proposal

Directive of the European Parliament and of the Council on the widespread introduction and interoperability of electronic road toll systems in the Community

Document reference number

The proposal

1. Taking account of the principle of subsidiarity, why is Community legislation necessary in this area and what are its main aims?

For several years, the Commission has been encouraging the Member States to harmonise their projects in this field in order to avoid the creation of as many incompatible national systems as there are Member States, with each system requiring the installation of special electronic equipment in vehicles. Despite the many millions of euros invested in the research and development framework programmes and in the Euro-regional projects, this strategy has failed. Proof of this came in May 2002 when Germany and Austria simultaneously decided to adopt incompatible national systems.

The Directive creates the conditions necessary for implementing a European electronic toll service based on the principle of one single contract and one piece of on-board vehicle equipment giving access to the entire toll network in the Community.

The service is based on two technologies:

- the 5.8 GHz microwave systems used today on European toll motorways;

- satellite positioning in conjunction with mobile communications, an innovative solution based in the long run on Galileo, and the only one enabling the Commission and the Member States to implement the new road-charging policies they favour in order to manage demand more effectively, improve safety and help traffic flow more freely throughout the primary urban and interurban network. For the future, the Directive advocates the use of this second solution in preference to the first.

The Directive sets up an Electronic Toll Committee responsible, in consultation with the Member States, for handling all technical and contractual matters necessary for the implementation of the European service.

The impact on business

2. Who will be affected by the proposal?

- Which sectors of business? The manufacturers of electronic equipment for the car industry, infrastructure managers, and freight transport companies.

- Which sizes of business (what is the proportion of small and medium-sized firms)? From 1 to 5 000 people. All the manufacturers are SMEs. The infrastructure managers range from 200 people for the smallest companies to 5 000 for the largest. The size of freight transport companies varies considerably from one to several hundred employees.

- Are there particular geographical areas of the Community where these businesses are found? No, they are more or less evenly spread out, and will be even more so in the future.

3. What will business have to do to comply with the proposal?

The infrastructure managers will have to direct future investment towards the technical solutions indicated. They will have to equip their toll networks with the equipment indicated even if they do not currently offer electronic tolls. The old investments will nevertheless be maintained until they become obsolete.

The automotive suppliers will be given technical directions to follow to ensure the interoperability of all the systems used in Europe. This will facilitate their work for the years ahead as the indicated solutions are already well known and in use.

4. What economic effects is the proposal likely to have:

- on employment?: New skilled jobs will be created in the industrial and service sectors. For Germany alone, it is estimated that 40 000 new jobs will be created. It is estimated that for the 15 Member States, more than 200 000 skilled jobs will be created. The industry will be given a considerable boost in promoting its products on the world market, especially as the Directive promotes innovative solutions which are suitable for all conceivable types of road-charging policy.

- From the infrastructure managers' point of view, job losses could occur in the long run but these would all be seasonal jobs. In terms of permanent jobs, the staff which might be affected in 2010 could easily be reassigned to tasks such as subscriber services, after-sales service or motorway maintenance.

- on investment and the creation of new businesses? New businesses will be created in the fields of fee collection services, customer management and monitoring cross-border fraud. Other companies providing systems maintenance may also be created. This will already be the case in Germany in 2003.

- on the competitiveness of businesses? The competitiveness of businesses will be fostered by the implementation of open systems, which will no longer be proprietary as they often are at present. By means of its standardising effect and through its Committee, the Directive will ensure an open market from which no supplier will be excluded. It has been checked that no currently known supplier would be excluded from the market by this Directive.

5. Does the proposal contain measures to take account of the specific situation of small and medium-sized enterprises (reduced or different requirements, etc.)?

The whole technical sector of this market is made up of SMEs. The clauses of the Directive are perfectly suited to this situation. All of these businesses have for several years been asking the Commission to take legislative action to remedy the blockage in the European Standardisation Committee and to allow them to base their products on a normative reference document. In the absence of compatibility with CEN standards, "EC Directive compatibility" will be a reference label expected by the whole profession.

Consultation

6. List the organisations which have been consulted about the proposal and outline their main views.

Suppliers of electronic toll systems equipment: THALES e-transactions, CS ROUTE, KAPSCH, COMBITECH and Q-FREE indicate that the feasibility of equipment which would be interoperable and could communicate with all the electronic toll systems currently found in Europe:

- needs to be validated in terms of marketing,

- would require an infrastructure manager to issue an invitation to tender for one million units, and

- would call for a minimum of three years' development, finalisation and testing.

They make no commitments regarding the price of such equipment.

Infrastructure managers: ASECAP (European Association of Tolled Motorway Companies), ASFA (Federation of French Motorway and Toll Facility Companies), ASETA (Spanish Toll Road and Tunnel Association), AISCAT (Italian Association of Tolled Motorway and Tunnel Companies), ASFINAG (Austrian road toll concession holder), TOLL COLLECT (concession holder for the German electronic toll system), BRISA (Portuguese motorway concession holder) and RAPP AG (consulting firm for Swiss electronic toll systems) delivered a mixed opinion in respect of certain lines taken in the Directive, particularly the choice of technology.

Bilateral consultation meetings have taken place with the authorities of many Member States working with electronic toll systems (UK, FR, BE, NL, ES, PT, IT, AT, DE), as well as with Switzerland and the EFTA countries. A general presentation was made on 27 June for representatives of the 15 Member States. Comments made by various of the Member States have been taken into account.