EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

In line with Article 75(1) of Regulation (EU) 2016/796 of the European Parliament and of the Council of 11 May 2016 on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004, the European Union Agency for Railways (hereafter "the Agency") is open to participation by third countries, in particular by countries which have concluded agreements with the Union under which the countries concerned have adopted and are applying Union law, or equivalent national measures, in accordance with the procedure laid down in Article 218 TFEU, in the field covered by Regulation (EU) 2016/796, which is above all railway safety and railway interoperability.

The Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road of 21 June 1999 (hereinafter "the Land Transport Agreement") provides for a coordinated transport policy in the areas of road, rail and combined transport.

The cooperation with the Swiss Confederation has intensified and evolved positively over the years. The geographic position of the Swiss Confederation and its role as a major transit country make it an important partner in achieving a safe and interoperable railway area in Europe.

Through Decision No 1/2013 of the Joint Committee, the Swiss Confederation committed to apply legal provisions equivalent to the relevant acquis in the area of rail interoperability and safety. Such legal provisions have been adopted and are effectively applied by the Swiss Confederation. The Swiss Confederation joins the meetings of the Interoperability and Safety Committee set up under Directive (EU) 2016/797 of the European Parliament and of the Council of 11 May 2016 on the interoperability of the rail system within the European Union (recast) as observer. Swiss experts have attended technical meetings at the European Union Agency for Railways (the Agency) as observers.

Further intensifying the existing constructive cooperation between the Union and the Swiss Confederation is deemed to be mutually beneficial in terms of achieving a safe and interoperable railway area as well as ensuring that the Swiss Confederation continues to provide its expertise in interoperability and safety matters.

As such, it is appropriate to allow in principle the Swiss Confederation to participate in the Agency. The Swiss Confederation requested such a participation in 2013.

The detailed rules for the participation of the Swiss Confederation in the work of the Agency are to be laid out in arrangements, which should be made between the Agency and Swiss Confederation. These arrangements shall be signed by the Agency after having received the agreement of the Commission and of the Management Board, as stipulated in Article 75(2) of Regulation (EU) 2016/796.

When making these arrangements, the Agency shall act in accordance with the relevant provisions of the agreement between the country concerned and the Union that is mentioned in Article 75(1) of Regulation (EU) 2016/796. In the case of the Swiss Confederation, this agreement is the Land Transport Agreement.

However, the Land Transport Agreement does currently not contain any provision in this regard. It is therefore proposed to insert a new Article in Title III of the Land Transport Agreement - which contains provisions related to international rail transport - that provides for the possible participation of the Swiss Confederation in the Agency.