ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM(77)295
Vol.1977/0101

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COMMISSION OFTHEEUROPEAN COMMUNITIES
I
COM(77)295 final.
Brussels .29Jurs1977.
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Firstbiennial Reportontogeconomic andfinancial situation
ofrailwayundertakings
(Article14ofDécision 7c?/327/EEC)
*.
COM(77)295final.
i

COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Firstbiennialreportontheapplication oftheDecision 75/327/EEC
oftheCouncilof20May1975aswellasRegulations (EEC)No1191/69,
(EEC)No1192/69oftheCouncilof26June1969and(EEC)No1107/70
oftheCouncilof4June1970
(Art.14oftheDecision 75/327/EEC)
Article 14oftheDecision 75/327/EECoftheCouncilof20May1975,onthe
improvement ofthesituation ofrailwayundertakings andtheharmonization of
therulesgoverning thefinancial relations betweentheseundertakings and
theStates,provides thattheCommission shallsubmittoCouncil,everytwo
years,areportonthisdecision.Thisreportshouldalsoincludetheappli­
cationofCouncilregulations onpublicserviceobligations (No1191/69),
thenormalization ofaccounts (No1192/69)andaids(No1107/70).
TheCommission attaches greatimportance tothesereportssincetheywill
provide aclearerviewoftherealsituation oftherailwayundertakings and
willshowcertaintrendscommontoalluidertakings .Itwillbepossibleto
discernthemeasurestobetakentoachieve aprogressive improvement ofthe
railwayundertakings andtheirfinancial equilibrium .
Itwillonlybepossibletoattaintheseobjectives byascomplete aspossible
co-ordination ofeffortbytheundertakings ,theMemberStatesandthe
Community bodies.
Inthisregard,theCommission underlines theimportance oftheestablishment
bytheMemberStatesinco-operation withtheundertakings ;ofpluriannual
business andfinancial programmes withintheframework oftheoverallpolicies
laiddownbytheState.Ineffect,theseprogrammes,whichtodatenomember
statehascommunicated totheCommission ,areconsidered asthebasicinstrument
intheeffective implementation oftheDecision oftheCouncilof20May1975.
.Accepting theinevitable ommissions inthefirstbiennialreport,whichwillbe

^ ~
remeded infuturereports,theCommission considers thatitnevertheless
provides asufficient basefordiscussions onactionstobepursuedorengaged
in.
TheCommission wouldliketheCounciltoexaminethisdocument andtakeupa
position ontheactionsto.beundertaken ,astheyfollowfromthepresent
report -andwhich,intheCommission'sview,shouldbeengagedinbetweennow;
andtheendof1978.
i
BEFORETHE31_DECEMBER
1.Examination bytheCounciloftheCommission 'sproposal of5July1976fora
consultation procedure andthecreation ofaCommittee onTransport Infra­
structure .
2.Presentation bytheCommission ofproposals completing andmodifying the
provisions ofRegulation (EEC)No1191/69takingintoaccount,particularly ,
provisions ofArt.9§2oftheDecision of20May1975.
3.Examination bytheCouncilofCommission proposals on:-
(a)themeasures necessary toachievecomparability betweentheaccounting
systemsandannualaccounts ofrailwayundertakings
(b)thelayingdownofuniformcostingprinciples .
Λ
A.Presentation ofproposals fortheadaptation ofRegulation (EEC)No1192/69
oftheCouncil of26June1969.
Êlf2£§-iy§«31_DEÇEMBER 1978
1.Examination bytheCounciloftheactionprogramme onco-operation between *
7■therailwayundertakings thattheCommission willsubmitbeforetheendof
'1977.
2..Presentation bytheCcmmission ofproposals toadaptRegulation (EEC)No1107/70
oftheCouncilof4June1970,particularly inapplication oftheprovisions
ofArt.15§2oftheabovementioned Decision .

CONTENTS
Page
INTRODUCTION 3
CHAPTER I:ECONOMIC ANDFINANCIAL SITUATION OFTHE
RAILWAYS INTHECOMMUNITY 6
A.Marketevolution 6
B.Financial trendsoftherailwayundertakings
from1973to1975 8
CHAPTERII:IMPLEMENTATION OFCOUNCIL REGULATIONS (EEC)
No1191/69,No1192/69andNo1107/70 13
.A.CouncilRegulation (EEC)No1191/69of26June1969 13
B.CouncilRegulation (EEC)No1192/69of26June1969 19
\
C.CouncilRegulation (EEC)No1107/70of4June1970 20
CHAPTERIII:IMPLEMENTATION OFTHEDECISION OF20MAY1975 26
A.MeasurestobetakenbytheMemberStates 26
B.ActiontakenbytheCommission 43
CHAPTER IV:CONCLUSIONS
A.Application ofRegulations (EEC)No1191/69,No1192/69
andNo1107/70
B.Implementation oftheDecisionof20May197550
50
53

-3-
INTRODUCTION
1.Article 14oftheCouncilDecisionof20May1975ontheimprovement of
thesituation ofrailwayundertakings andtheharmonization ofrulesgo­
verningfinancial relations betweensuchundertakings andStates
(75/327/EECM1)states :-
"1.Everytwoyears,theCommission shallsubmittotheCouncil areport
"ontheimplementation byMemberStatesofthisDecision andofRegul-
"ations(EEC)No1191/69,(EEC)No1192/69and(EEC)No1107/70.
"Thereportmustclearlyindicate theresultsachieved,withparticular
"regardtoanychangesinthefinancial situation oftheraiIway'under­
"taking".
2.Article 16(1)oftheDecision of20May1975states:
"Assoonaspossible andnotlaterthan1January 1977,MemberStates
"shall,afterconsultation withtheCommission ,giveeffect,bylaw,
"regulation oradministrative action,tosuchprovisions asmaybe
"necessary fortheimplementation ofthisDecision".
TheCommission hasbeenconsulted onthissubject bysevenMemberStates.
Article 14(2)ofthisDecision states :
•"InordertoenabletheCommission todrawupthereportreferredtoin
"paragraph 1,MemberStatesshall,attheappropriate time,forwardtoit
Mthenecessary information and,inparticular ,theprogrammes referred
"toinArticles 4and13,togetherwithanymajorchangesmadetothem".
(1)OJL152,12June1975,p.3

-L-
TheCommission doesnotyethavethesebusiness plansandfinancial pro­
grammesatitsdisposal,astheimplementing measures,including the ■'
obligation todrawupsuchplansandprogrammes ,werenotrequireduntH
3»
1January 1977.
Furthermore ,theMemberStateshave,asinthepast,informed theCom­
mission'oftheestimated andactualamountsofcompensation ,aidsand
otherfinancial assistance grantedtorailwayundertakings underRegul­
ations (EEC)Nos1192/69and1107/70andtheDecision of20May1975.
Intheabsenceofthebasicinformation necessary fortheanalysisitshould
havemade,theCommission cannotinthisreport,"indicate theresults
achieved,withparticular regardtoanychangesinthefinancial situation
oftherailwayundertaking ".
Nevertheless ,theCommission feelsthatitmustseizethisopportunity
totakestockoftheimplementation ofthevariousprovisions inquestion
andgiveanaccountoftheeconomic .andfinancial situation oftherailway
undertakings whichwilllaterserveasareference basistoassesschanges.
3.Takingaccountoftheavailableinformation ,thereportfirstgivesabrief
accountoftheraiIways'posit iononthegoodsandpassenger transport markets
aswellasthefinancialtrendsoftheundertakings overthelastfewyears.
Intheproduction ofthisreportthemostrecentavailablefigureshavebeen
used.
Thereportthendescribes thesituation anddrawsconclusions concerning
theimplementation ofCouncilRegulations (EEC):
~No1191/69of26June1969onactionbyMemberStatesconcerning the•
obligations inherentintheconceptofapublicserviceintransport
*;.byrail,roadandinlandwaterway (1)
(1)0JL156,28June1969
*«

-5-
-No1192/69of26June1969oncommonrulesforthenormalization ofthe
– Saccounts ofrailwayundertaking (1) ?
-No1107/70ofAJune1970onthegrantingofaidsfortransport byr^il,
roadandinlandwaterway (2),asamendedbyCouncilRegulation (EEC):*;
No1473/75of20May1975(3). 1
Thereportgoesontogivedetailsoftheimplementation oftheDecision
of20May1975asregardsboththemeasurestobetakenbytheMember
StatesandthosepropertotheCommiss'on .Thischapterincludes alistof
thelegalframework withinwhichtherailwayundertakings function andthe
measures takenorplanned bytheMemberStatestoadapt,wherenecessary ,
existingprovisions totheobligations arisingfrom theDecision.
Thelastchapterisdevotedtothemeasuresthatmustbetakenbothat
national levelbytheMemberStatesandatCommunity levelontheCom­
mission'sinitiative .
(1)JOL156,28June1969
(2)JOL130,15June1970
(3).JOL152,12June19754

-6-
CHAPTER I:ECONOMIC ANDFINANCIAL SITUATION OFTHE .RAILWAYS INTHECOMMUNITY
4.Before examining theimplementation oftheCommunity measures whose purpose
istoproduce aclearer view ofthesituation oftherailways andimprpve
their position ,especially their financial position ,theeconomic and :?-
financial developments leading totherailways' current situation should
bebriefly outlined .This stock-taking ofthesituation canalso beused
asareference infuture reports forassessing theprogress made inthis
sector . - -
A.MARKET EVOLUTION
5.Rapid economic expansion intheCommunity between theyears 1965-1972 is
evidenced bythenearly twofold increase inthegross national product of
themajority ofpresent Member .States .
In1965 ,the nine States nowcomprising theEuropean Economic Community
had agross domestic product atmarket prices of418,5 thousand million
units ofaccount which -by1972 hadreached 761,5 thousand million units
ofaccount ,thereby reflecting an86%increase .
Transport (andcommunication )throughout this period maintained itsnot
insignificant contribution ofbetween 5%and8%ofthegross domestic product
whilst employing approximately 6%ofthetotal labour force .(1)
6.TheReport onthepresent situation ofthegoods transport markets inthe
Community (2),drawn upbytheCommission in1975 andtowhich reference
maybemade ,showed that from 1963 to1972 theindex fortotal goods
traffic expressed intonnes /kilometres hadreached 144in1972 ,from a
base of100in1962 .This report shows that ,despite thesubstantial
increase intraffic ,therelative share oftherailways ingoods transport
fell ,theindex in1972 reaching only 101from abase of100in1963 .
(1)seetable I-Annex III
(2)Doc.COM (75)491final

-7-
Thistrend1sIllustrated bythemoredetailedfiguresfoundIntables ;
IIandIIIofAnnexIIIontheevolution ofgoodstransport bythethree
landbasedmodesandthegrowthInthenumberofheavygoodsvehicles .;--
7.Asimilartrendcanbeobserved inthepassenger transport marketwhere
evenifthetotaltrafficcarriedbytherailways hasincreased slightly
inmost'oftheMemberStatesitcanbeconcluded thattheirrelative share
.•iofthepassenger transport markethasdeclined.Thegrowthofprivate fv
passenger transport (seetablesIVandVofAnnexIII)hasaccentuated *
thistrend.Thedecade1963-1974 alonehaswithressed athreefold increase
inthenumberofprivatecars.
8.Thisperiodofreference (1963-1974 )hasfurtherbeencharacterized by
(a)considerable investment inandextension totheexisting motorway networks
which .isillustrated bytableVIofAnnexIII.ForthenineMember
Statescomprising theEuropean Economic Community thenumberofkilo­
metresofmotorways hasincreased nearlyfivefold duringthisperiod.
ι-
(b)Considerable structural changesinthefreighttransport markets :
thevolumeofgoodstraditionally carriedbyrail,suchascoal,
hasfallenandsurfacetransport requirements havedecreased because
ofthegeneraltendency forheavyindustrytobelocatedcloseto
ports.
(c)Thedevelopment ofnewtransport techniques tomeetthenewtransport
requirements :e.g.pipelines .Thegrowth,insomeinstances quite
phenomenal e.g.France,ItalyandtheUK,ofthismodeoftransport
isdemonstrated intableVIIofAnnexII.

B.FINANCIAL .TRENDS OFTHERAILWAY UNDERTAKINGS
FROM1973TO1975 H
Thetablescontained inAnnexesI(a)and(b)andIVrecordthefollowing
~thecompensation ,aidsandotherfinancial assistance granted bythei;
Statestotherailwayundertakings '■'
~statistics showingthescaleofeachundertaking 'snetwork,operations
andstaff;financial data,inparticular receiptsclassified according
tothemaincategories ofoperation ;andrunningcosts
-certainindications ofsomeofthemaintrendsinthefinancial results
oftherailwayundertakings .
Afewpreliminary remarks :
(a)Thefigurescontained intheannexesrelatetotheperiod1973-75,
i.e.aftertheCommunity wasenlarged .
Asthisperiodwasfairlyshortandwascharacterized byconsiderable
short-term fluctuations ,no-long-termtrendscanbeinferred :such
trendscanbeinferred onlyfromalongerreference period.For
instance although thesizeofthenetworkchangedlittlefrom1973
to1975,therewasanappreciable reduction insomecountries during
thesixties (intheUnitedKingdom,from28000kmin1962to
18000kmin1975).Thesameistrueofstaff:British Railways
staffnumbersfellfrom475000in1962to190000in1974.The
staffemployef bytheItalianrailways (FS),however,increased in
numbers from168000in1962to221000in1975.Butifthesesta­
tisticsaretobeinterpreted correctly,theyshouldnotbeisolated
fromthegeneralcontextoftheundertaking towhichtheyapply.
Account mustbetaken,forinstance,ofthemoreorlessfrequent use
ofsub-contractors ,thestructure oftraffic,workingconditions ,
andsoon.Forthesereasonsandinordernottogobeyondthe
scopeofthereport,theCommission hasdecidednottoprovideany
longei–termstatistics forthissector.

(b)Thetablescontained inAnnexesIandIVgiveonlyanincomplete and
notdirectlycomparable pictureoftheundertaking financial situation .
Therearenofigures ontheevolution oftherailwaysassets.The
national systemsrelatingtothecomposition andassessment
ofassets,themethodsforfinancing investments ,etc,varytoomuchfor
thefigurescontained intheannualreportsoftherailwayundertakings
tobecompared.TheCommission willendeavour,withtheaidoftheMember
States,tofillintheseimportant itemsofinformation inafuture
biennial report.Considerable progress canalsobehopedforinthis
sectorafteradoption oftheproposal foraRegulation onthenecessary
measurestoachievecomparability betweentheaccounting systems .and
annualaccounts ofrailwayundertakings (1).
<c)Certainundertakings (CIE,NSandtoacertainextentBRB)areengaged
inotherimportant activities besidestheirrailwayactivity andthere­
fore,sincethepresentation oftheiraccounts doesnotalwaysprovide
foracleardistinction betweentheseactivities ,someofthefigures
arenotreadilyavailable intheAnnualAccounts andtherebyhavebeen
deduced .
(d)Thefigurescontained inAnnexeIandIVareforthemostparttakenfrom
theannualreportsoftherailwayundertakings .However,thesta­
tistics oncompensation ,aidsandotherfinancial assistance bythe
Statesarethoseofficially communicated totheCommission bythe
Governments .Anydiscrepancies betweenthesefiguresandthosecon­
tainedintheundertakings' annualreportscanbeattributed tothe
factthattheannualreportsaredrawnupsoonaftertheprovisional
closureofthefinancial year,whilethefiguresforwarded bythe
Governments arethefinalfigures,whichareoftendrawnupseveral
yearslater.Thisstateofaffairsisunsatisfactory andwillbestudied
bytheCommission andtheMemberStates.
10.Subjecttothesecomments,thetablesinAnnexesIandIV'-suggest anumberof
7•observations thatapplytoallthenetworks :
<1>Doc.COM(77)76final,17March1977

(a)Theincrease inexpenditure generally reflectstherateofinflation
intheMemberStates.Theaverageindexofincreasefortheninenet­
worksoftheCommunity overtheperiod1973-75 (1973=100)was138
againstanaverageindexofincrease inconsumerpricesinthenine
countries overthesameperiodof142.
Individual figures aregiveninTableIofAnnexeIV.
Cb)Thehighlevelofstaffcostsinrailwayoperations whichconstitutes
minimumof65%oftheoperating costs(totalexpenditure less
amortization andinterest charges).Detailedfigures ontheincidence
ofstaffcostsforindividual railways oftheNinearetobefound
inTableIIofAnnexeIV.Comparison ofthefiguresthereinmustbe
approached withcautionsincethesourcedocuments (theAnnualReports
oftheRailways )donotalwayspresentthefiguresinatrulycomparative
waybynotadequately distinguishing ,inallcases,betweensalaries,
socialchargesandpensionpayments.Further,itshouldbenotedthat
thevolumeofstaffcostsisnotonlyafunction ofthenetwork
structure butalsothedegreetowhichtraditional railwayactivities
havebeendelegated tosubsidiary companies whosestaffnumbersand
costsarenotindicated intheAccountsoftheRailwayundertakings .
(c)Variousfactors (amongstothersthemarketsituation,theStatemeasures
affectingtarifflevelsandpricingpoliciesetc)haveprevented the
railwayundertakings fromincreasing theirselfgenerated revenueata
ratecomparable totheirincrease incoststherebyaugmenting thedif­
ferencebetweenreceipts andexpenditure .Duringthethreeyearperiod-
1973-75theaverageincreaseofselfgenerated revenueforthenine
networks wasofthemagnitude of4%whilsttheiraverageincreasein
totalexpenditure wasoftheorderof3aThesituation foreach
individual networkisillustrated inTableIIIofAnnexIV.

-11-
<d)Thissituation hasledtoaconsiderable increase infinancial assistance
*1
givenbytheMemberStates.Indeed,insomecasestheassistance given
.r
exceedstherevenuegenerated bytherailwayundertakings .Inthepases
ofLuxemburg,ItalyandBelgiumselfgenerated revenueformsonly2i£j
39%and36%respectively oftotalincomewhilstinnocaseisithigher
./*1
than80%inIreland. .. ,
Detailedfiguresforthe.individual networks canbefoundinTablesfV
andVofAnnexe IV.
Anyevaluation ofthesefiguresshouldbeconsidered inthelightofthe
following observations :
(i)Thestructure,organization andactivities pursuedbytheundertakings
varygreatlyfrom^.f0rinstance,purelyraiIwayoperations inLuxembourg
tothemultimodal activities andorganization oftheCIEinIreland.
(■ji)ThefiguresgivencoverStateassistance measures ofdifferent types:
i
-compensation grantedforpublicserviceobligations (Regulation
(EEC)No1191-/69),orinconnection withthenormalization ofaccounts
(Regulation (EEC)No1192/69),orundertheRegulation onthegranting
ofaids(Regulation (EEC)No1107/70)
-aidswhichhavenotthecharacter ofcompensation including
assistance tocoverdeficits .
Theymayalsoincludeinvestment grants.Unliketheircompetitors ,
therailways mustusuallyfinancetheirowninfrastructure invest­
ment;buttheundertakings' self-financing capacity hasbeenextre­
melyrestricted ,mainlyowingtothegeneraleconomicsituation .
Furthermore ,itseemsthattheStateshavecoveredonlyarelatively
smallproportion ofrationalization andmodernization investment de­
signedtoreorganize theundertakings .Asthingsstandatpresent,
however,thescaleofinvestment grantscannotbegaugedexactly *
astheyvaryfromoneMemberStatetoanotheraccording totheunder­
taking'slegalstatus^ownership oftheinfrastructure andsoon. <-
Thisaspectoftheproblemwillbecloselystudiedsothatcomplete
-andcomparable figurescanbegiveninthenextreport.

12-
Finally/someofthefigurescontained inthetablemaybelower
thantheactualfigures.
ReferenceshouldbemadetoAnnexhfordetailsofthevarioustypes
ofassistance .
(e)Tokeeptheirnetwork andequipment operational and,insome
caseseventosafeguard theirliquidity position,therailwayunder­
takingshaveincreasingly resortedtothecapitalmarketsfor
finance :thusinterest andcapitalrepayment arehavinggrowing
repercussions ontheirfinancial burden.Theposition fortheindi­
vidualnetworks isshowninTableVIofAnnexe IV.

-13-
CHAPTERII-IMPLEMENTATION OFCOUNCIL REGULATIONS (EEC)No1191/69,
No1192/69ANDNo1107/70
GENERAL -
11.ThetablesinAnnex1(a)showtheamountsofcompensation ,aidsand
financial assistance grantedtotherailways intheyears1973to1975
andtheestimates for1976,inaccordance withtheRegulations dealt
withinthischapter.
On18June1974theCommission transmitted totheCouncil areport(1)
ontheimplementation ofRegulations (EEC)No1191/69onpublicservice
obligations andNo1192/69onthenormalization ofaccounts ;thisreport
wasdiscussed bytheCOREPERWorkingPartyonTransport Questions .
Sincethisreportwaspresented in1974theCommission hasheldbilateral
meetings withGovernment expertsfromtheMemberStatesand,inOctober
1975,amultilateral meetingatwhichwereexamined thespecialproblems
raisedbytheimplementation oftheseRegulations .Thesequestions are
discussed inthefollowing pages.
A.COUNCIL REGULATION (EEC)No1191/69OF26JUNE1969
12.Thebroadsituation isasfollows :
FiveMemberStates-Denmark,Ireland,Luxembourg (2),theNetherlands (3)
andtheUnitedKingdom-treatalltheirrailpassenger operations as
subjecttoanobligation tooperatequalifying forcompensation .Asi­
milarsituation obtainsinBelgiumwheretariffobligations areimposed
onallpassenger traffic.
(1)Doc.R/2684/74(TRANS170)of18October .1974
+Corrigendum 1of12November 1974-Doc.R/523/75(TRANS23)of
24February 1975
(2)International trafficisnotincludedforLuxembourg
(3)International traffic .byTEEand"D-Treinen "isnotincludedforthe
Netherlands •

-14-
GermanyandFrancegrantcompensation foraconsiderable proportion of
theirpassengertraffic,inparticular short-distance traffic,andfor
thesocialtariffsimposedforsomecategories ofpassenger .
Asregardsgoodstraffic,Denmarktreatsallservicesoperated bytheDSB
assubjecttoapublicserviceobligation .
Germany,FranceandItalygrantcompensation forsomesupporttariffs,
thesethreeMemberStatesandBelgiumgrantcompensation "formaintaining
certainlineswithlittletrafficwithoutdistinguishing betweenpas­
sengerandgoodstraffic.
Itmaybe'concludedthatpassengertrafficismoreandmoreheavily
subsidized inalltheMemberStates.Suchassistance islesscommonly
grantedforgoodstraffic,exceptinDenmark.Despitetheincreasing
shareoftherailwayundertakings' revenuemadeupofcompensation for
publicserviceobligations ,therailwaysarestillrecordingeverr
growingdeficits .
* *
*
Theimplementation ofRegulation (EEC)No1191/69hasbroughtcertain
problemstolight,whichcouldbesolvedwhenanoverallrevision
ofthisRegulation ismade.

-15-
13.Criteriaforthemaintenance ofanobligation (Article 3)
WheretheMemberStateshaveendeavoured tojustifythemaintenance of
publicserviceobligations onthebasisofthecriterion of"theprovi­
sionofadequatetransport 'services"andthesolution"leastcostlyto
thecommunity",,someofthemhavearguedthatthesecriteria donottake
sufficient accountofvariousdetermining factorssuchastheenviron­
mentandenergyconsumption .Thisconsideration formedthebasisfor
Article 15(2)oftheDecision of20May1975concerning thepossible
adaptation oftheRegulation inquestion.
Inpractice,mostMemberStatesconsiderthattheycantakethesefactors
intoaccount whenmakingtheirdecisions byadopting aliberalinter­
pretation of"theprovision ofadequatetransport services";thisispos­
siblewhen,"thepublicinterest"referred toinArticle 3(2)istaken
intoconsideration .
TheCommission willattempttoprecisethecriteria toallowabetterevaluation ,
evenifapproximate ,ofthemacro-andmicroeconomi celements which
areabasicfactorinthewholeprocessofimproving thesituation of
theundertakings .(1)
14.Procédure
TheRegulation s;.)iesthattheundertakings shallapplyforthetermination
ofpublicserviceobligations entailing economic disadvantages forthem;
thesedisadvantages mustbeassessed onamedium-term basis,asstipulated
bythejudgment oftheCourtofJusticeoftheEuropean Communities
incase36/73.(2)
(1)seealso"22ndannualReportandResolution oftheCouncilofMinisters-
year1975"oftheCEMT,page120andfol.
(2)0J.C36,1June1973

Mostofthegovernment expertsareoftheopinionthattheundertaking
neednotberequiredtoapplyfortermination everyyearaslongasthe
Statehasdecided,openlyorimplicitly ,tomaintain anobligation .
Itisquiteunderstandable thattheresponsible authorities shouldwish
toavoidapurelyformalandcumbersome administrative procedure which
compelstherailwayundertakings tomakeafullyarguedannualapplic­
ationforthetermination ofobligations whichwillbemaintained in
anycaseandforwhichcompensation willbegranted.Buttheabolition
ofthisprocedure harbours thedangerthattheexistingobligations may
be"renewedautomatically andthattheundertaking andtheresponsible
authority mightsettleforapermanently established
situation ..whereastheadaptation oreventhegradualabolition ofthese
obligations shouldbetheconstant preoccupation ofthesetwopartners .
>
Forthisreason,theCommission considers thatthiscontinuous study,
whichisofgreatimportance forrationalization policy,shouldbeco­
veredbytheconcertation procedure provided forbytheDecision of
20May1975fordrawing upthebusiness plansandfinancial programmes of
therailwayundertakings .
Methodsofcalculating compensation (Articles 10and11)
AlltheMemberStatesgranting compensation foralloraconsiderable
proportion oftheirpassenger traffic nowcalculate theamountof
thiscompensation inaccordance withthetotalcostsmethodreferred
tointhesecondsubparagraph ofArticle10(1).
Γ
However,therearestillcertaindifferences ofapproach asregardsthe
application ofArticle10(2),underwhichtheamountofcompensation
maybereducedincertaincircumstances .

-17-
According totheCommission ,thisprovision shouldbeappliedonlywhen
themethodusedisthatbasedonavoidable costsassetoutinthefirstsub­
paragraph ofArticle10(1).Themajority ofgovernment expertssharethis
viewpoint .
16.Determination ofthefactors whichmightwarrant anadjustment oftheamount
ofcompensation (Article 13)
Article 13(1)statesthat,whenfixinginadvancetheamountofcompens­
ation,thecompetent authority must"atthesametime determine the
factorswhichmightwarrantanadjustment ofthatamount".
Infact,withoneexception ,MemberStatesdeclarethatinsurmontable
difficulties existfortheapplication ofthisprovision .Inthese
circumstances ,theCommission willinduecourseconsider whetherthis
provision shouldbeamended.
17.Non-rail operations runbytheraiIways(Article19)
UnderArticle 19ofRegulation (EEC)No1191/69,theRegulation applies
torailtransport operations conducted bythe.railwayundertakings ;itcarried out
doesnotapplytoroadtransport operations/bytheseundertakings ,as
confirmed byastatement recorded intheCouncilminutes.However,
railwayundertakings aremakinggrowinguseofroadtransport operations ,
eitherdirectlyorthroughsubsidiary companies oroperators,inparti­
cularforpassenger servicestoreplaceorsupplement railservices.
.Itisalsostatedintheabovementioned Councilminutesthatnon-
application oftheRegulation toroadtransport operations conducted bythe
railwaysdoesnotprecludetheMemberStatesfromgrantingtheseunder­
takingscompensation pendingCommunity rules.

-18-
AninitialCommunity provision -Article3(2)ofRegulation (EEC)No
1107/70-hasconfirmed thepossibility ofgranting compensation for
publicserviceobligations notcoveredbyRegulation (EEC)No1191/69
"untiltheentryintoforceofrelevant Community rules".
Article 9(2)oftheDecision of20May1975statesthattheCommission
shall,bytheendof1977,submitproposals ontariffobligations not
coveredbyRegulation (EEC)No1191/69.
Despitetheforegoing,several MemberStatesapplyRegulation (EEC)
No1191/69tosuchroadtransport operations conducted bytherailways .
Theymaintainthatthesesituations arecoveredbythesamepublic
serviceobligation astherailnetworkandthattherationalization
measures wouldbejeopardized iftheywereexcluded fromthescopeof
theRegulation .
Initsproposal of18October 1972foraRegulation tosupplement
Regulation (EEC)No1191/69(1),theCommission suggested thattheseroadtran­
sport'operations should *beincluded withinthescopeofRegulation
'EEC)No1191/69.TheCouncilhasnotyettakenadecision onthis
proposal .
Thesituation willeventually becleared upbytheadoption ofmeasures
whichtheCommission mustproposeunderArticle 9oftheDecision of
20May1975.TheGovernment expertsconsidered thatthis
proposal shouldtakeintoaccountthetariffobligations imposedon
theroadtransport services runbytherailwayundertakings .
Thequestion ofthescopeofRegulation (EEC)No1191/69,referredto
inArticle19(3)thereof,shouldtherefore bereconsidered iftheRegul­
ationisamended.
(1).COM(72)1516final

-19-
B.COUNCIL REGULATION (EEC)No1192/69OF26JUNE1969
18.Regulation (EEC)No1192/69hasbeenimplemented correctly onthewhol^.
Compensation payments underthisRegulation haveincreased considerably .
« w
thoughataslowerratethanthoseunderRegulation (EEC)No1191/69
(seeAnnexI)exceptinItaly/^ffilrehasbeenanincreaseof800'/.from"
1974to1975;thiswastheresultofincluding compensation forthe
normalization offinancial burdensarisingfromthelackofnormalization
inthepast(ClassXV).Apartfromthisisolatedinstance,themostimportant
compensation payments inthemajority ofMemberStatesweregrantedfor
expenditure onretirement andotherpensions (ClassIII)andfor
crossingfacilities (ClassIV).
TheRegulation providesforalargenumberofoptionalnormalization
classes andawidelatitude ofchoiceofmethodforcalculating the
compensation forcertainclassesofobligatory compensation ;this
meansthatthereisrtiorescopefordiscretionary actionthanunder
Regulation (EEC)No1191/69,whichcanonlyobstruct theimprovement
ofthesituation ofrailwayundertakings andjeopardize theachievement
offinancial equilibrium .
TheCouncil,awareofthisproblem,hadstipulated inArticle 4of
Regulation (EEC)No1192/69thata"finalsettlement "inrespectof
theoptional classesofcompensation wouldbedecided uponwhen
measures wereadoptedtoimplement theprovisions concerning the
financial relations betweentherailwayundertaking andtheState.
Atthesametime,pursuanttopoint4ofAnnexIIIofthisRegulation ,
theCouncil wasalsotohavedecided whatactionshouldbetakenin
thisrespect.
)

-20-
However,whentheDecision of20May1975wasadopted,theCounciltook
noactionontheproposal of28July1971(1)whichtheCommission sub­
mittedtoitfortheamendment ofRegulation (EEC)No1192/69.
Incompliance withArticle3(2)ofRegulation (EEC)No1192/69,the
Commission alsotransmitted totheCouncil on20December 1972a
proposal (2)supplementing thisRegulation ,inparticular asregards
itsscope,butthistooisstillpendingbeforetheCouncil..
SincetheentryintoforceoftheRegulation ,newCommunity measures,
particularly asregardspubliccontracts andeventheDecision of
20May1975,maygiverisetoduplication (e.g.betweennormalization
inClassXVandArticle 5oftheDecision).therebycausinglegalimprecision .
Effortstoclarify andimprovethefinancial relations betweenthe
undertakings andtheStatesrequirethatasolution befoundforallthese
problems .TheCommission willtherefore putthenecessary proposals
totheCouncil induecourse.
C.COUNCIL REGULATION (EEC)No1107/70OFAJUNE1970
19.AsrevealedinAnnexI,avarietyofaidsaregrantedbytheMember
Statestotheirrailwayundertakings underRegulation (EEC)No1107/70.
Comparison ispossible,therefore,onlybytypesofaidprovidedfor
intheRegulation .
(1)
(2)•COM(71)817
Doc.COM(72)final
1517final,7December 1972

-21-
20.Aidsforthecompensation ofinfrastructure costs(Article3(1)(b)
Theseaidsgrantedtorailwayundertakings whichhavetobearexpendi­
turesontheinfrastructure theyusewhilecompeting undertakings donot
havesuchcosts,mustbedetermined inthelightofthesecostswhich
competitors donotbear.
AidsofthistypearegrantedbyBelgium,France,IrelandandtheUnited
Kingdom.
».
TheCommission departments haverequested andobtained fromtheGovern­
mentsinquestioninformation onhowtheseaidsarecalculated .Butin
theabsenceofexactdataandcomparable principles ofcalculation for
theinfrastructure costsbornebyroadtransport andinlandnavigation ,
itisdifficult toassessandevenhardertocomparetheamountsofaid
granted.Insomecases,thereappearstobeaverywidelatitudein
thedetermination oftheamounts,whichoftenaremoretheresultof
budgetary possibilitiesthansystematic calculation .
Thisquestion mustbeexamined ingreaterdetail,asthecurrentstate
ofaffairsisnotacceptable asafinalsettlement .Butevenifno
progressismadeintheshorttermasregardschargingfortheuseof
transportinfrastructures ,amorebindingtransitional solution mightbe
neededintheinterests ofimproving thesituation ofrailwayunder­
takings.: .
21.Aidsforpublicserviceobligations notcoveredbyRegulation (EEC)
No1191/69(Article 3(2))
Underthishead,mostMemberStatespaycompensation toundertakings for
thecostsresulting fromarefusaltoauthorize higherrates(Germany
andFrance)orfromobligations imposed onroadorferryservices run
bytherailways (Germany,Belgium,IrelandandtheNetherlands ).

-22-
Asalreadystated,thisproblemcouldbesettledbyadopting thepro­
visionscontained inArticle9(2)oftheDecision of20May1975.
22.Attention shouldbedrawninthisconnection toaidgranted byBelgium
fortheapplication by.theSocieteNationale descheminsdeferbeiges
(SNCB)ofthroughinternational tariffsforECSCproducts onthebasis
ofthesameArticle3(2).InitsDecision of4May1976(76/649/EEC)(1)
theCommission refusedtoconsiderapplication ofthesetariffs asa
publicserviceobligation andaskedtheBelgianGovernment todiscontinue
togivethisaidonthebasisoftheaforesaid article3(2).
23.Aidstoresearch anddevelopment
Onlyonerailwayundertaking -BritishRail-receivedaidforthis
purposein1974and1975;itwasgrantedforthedevelopment ofadvanced
passenger trains.TheBritishGovernment hasbeenaskedtoprovide
additional information concerning theimplementation oftheseprogrammes
viaitsrepresentatives concerned withaidsontheAdvisory Committee .
i
24.Otheraidsreferred toinArticle 4
ThewordingofthisArticle wasamendedbyCouncilRegulation (EEC)
No1473/75of20May1975toincorporate thechangesarising fromthe
•adoption oftheDecision of20May1975.
Hithertopractically allthefinancial assistance grantedbytheStates
totherailwayundertakings wereauthorized on.thebasisofthis
Article4,withtheexceptions ofthatcoveredbyRegulations (EEC)
No1191/69and1192/69andbyArticle 3ofRegulation (EEC)No1107/70.
Thenewtext,however,makesacleardistinction betweenthefinancial
assistance referredtoinArticle 5oftheDecision of20May1975and
thedeficitsubsidies referred toinArticle 13ofthatDecision .
(1)OJL229,20August1976

Thefiguressupplied uptonowbytheMemberStatesdonotyet,however,
allowanyassessment tobemadeoftheeffectsofthisnewprovision .
Butabasicdistinction mayalready bemadebetween twocategories cor­
responding totheassistance referredtoinArticle 5(1)andtothe
deficitsubsidyreferredtoinArticle 13oftheDecision of20May1975
thecontributions madebyMemberStatestoinvestments bytheundei–
takings (Dutchrailways (NS),Italianrailways (FS),Danishrailways
(DSB)andGermanrailways (DB)),andthepayments madetocoverallor
someofthedeficits (NS,BR,SNCB,FS,DBandtheIrishrailways (CIE),
Frenchrailways (SNCF)andLuxembourg (CFL)).
Theamountsgrantedareverylargeandinsomecasesevenexceedthe
amountofcompensation grantedunderRegulations (EEC)No1191/69and
No1192/69.Obviously thefuturetrendofpayments grantedunderArti­
cle4ofRegulation (EEC)No1107/70,asamendedbyRegulation (EEC)
No1473/75,andespecially thosemadeinaccordance withArticle 13of
theDecision of20May1975tocoverdeficits willbeindicative ofthe
resultsofmeasures takenbytheundertakings ,theMemberStatesandthe
Community bodiesonthebasisofthisDecision .
Aproblemarisesinconnection withthecontribution tofinanceinvest­
mentinnewinfrastructures .MostMemberStates,eventhosewherethe
railwayundertaking haslegalpersonality ,stillowntherailinfra­
structure ;theundertakings haveonlytherightofuse-withor
without acharge-coupledwiththeobligation topreserve andmaintain
theseinstallations .

-24-
Evenifitcontested bycertain MemberStates,itisnevertheless necessary
thattheCommission beinformed ofthesecontr-ibutionsnotonlytobein
apositiontoassessthembuttohaveanoverallviewoffinancial transfers
betweentheStatesandtherailwayundertakings .Butthequestionalsoarises
ofwhether,intheshorterorlongertermandinthelightofexperience
ofimplementing theDecision of20May1975,itwillnotbenecessary to
definethepositiontobetakennotonlyasregardsinfrastructure in­
vestment butalsoasregardsthewholeofArticle5(1)oftheDecision.
* * *
*
26.Itmaybeofinteresttonotethat,apartfromtheabovementioned aids,
theCommission hasauthorized theUnitedKingdomtograntaidtounder­
takingswishingtoconstruct installations (mainlyprivatesidings)to
helppromotethetransfer ofroadtraffictotherailways inorderto
decongest roadtrafficandimproveenvironment conditions .
Theaidinquestion hasnotbeengrantedtoBR;itwasconsidered itdid
notmeetthecriteria ofArticle 92§1oftheEECTreaty.But,because
ofthesignificance ofthisexperiment forthetransport sector,the
Commission hasaskedtobeinformed oftheresultsofthismeasure,
particularly asregardsthenumberofrecipient undertakings andthe
resulting shiftoftraffic.

Itshouldalsobenotedthattheimplementation ofRegulation (EEC)
No1107/70isregularly examined bytheAdvisory Committee onAids(to
therailways andothermodesoftransport )setupunderArticle 6of
thisRegulation .Furthermore ,pursuanttoArticle15(2)oftheDecision
of20May1975,theCommission hasconsulted theAdvisory Committee on
Transport (Article 83Committee )onpossible changestobemadeto
Regulation (EEC)No1107/70..TheCommission willreceivetheCommittee's
opinioninthenextfewmonths.Inthelightofthis,theCommission will
defineitsposition ontheusefulness andthecontents ofaproposal for
apossible amendment oftheRegulation inquestion whichwouldcover
alltheproblems referredtoherein.

-26-
CHAPTERIII:IMPLEMENTATION OFTHEDECISION OF20MAY1975
A.MEASURES TOBETAKEN BYTHEMEMBER STATES
28.Thegeneralstructure andLegalsystemsoftherailwayundertakings
varyconsiderably fromoneMemberStatetoanother (1).Thereare
historical reasonsforthis,butitalsoresultsfromtheposition
given totherailwaysinthetransport systemsofthevarious
MemberStates.TheDecision of20May1975aimedinparticular at
harmonising relations betweentherailways andtheStates.While
allowing scopetothespecialcharacteristics ofthevariousnational
systems,itcontains anumberofcommonbasicprinciples withwhich
theStatesandtheundertakings mustcomply.
However,mostoftheMemberStateshavenotconsidered thatimplem­
entation oftheDecision of20May1975requires anychangeintheir
existingnational laws,regulations andadministrative provisions .
Toestablish whetherthisattitudeisjustified,theCommission
requested andobtained information aboutnationalprovisions meeting
therequirements oftheDecision of20May1975.Thefollowing
information wascollected :
Germanyconsiders thatthisDecision,addressed totheMemberStates,
appliesdirectlytotheDB.asaresultofthisundertaking 'slegal
status.TheGermanGovernment hasconfirmed thisviewandthemethods
ofimplementing theDecision inanordertotheDB.
Denmarksharesthisviewpoint asregardstheDSB.
(1)SeeAnnexIIforthetechnical details

-27-
TheBelgian Government senttheSNCBaletterdefining theobligations
arisingforthisundertaking fromtheprovisions oftheDecision .
InItaly,aninter-ministerial committee iscurrently drafting an
enabling lawtoallowtheGovernment toreorganize theFSinaccordance
withtheprinciples oftheDecision .
InLuxemburg aninter-ministerial committee hasprepared adraftrevision
ofthestatutes andspecifications fortheCFLinordertoimplement
theDecision/aswellasforotherreasons.Thisdrafthasbeensent
totheCFLboardofdirectors foritsopinion;itwillthenbesentto
theMinistryforForeignAffairsinordertoreceivetheapproval of
theHighContracting PartiestotheBelgian-French-Luxembourg railways.
Theprovisions forimplementing theDecision canonlybeadoptedfollo­
wingapproval .TheLuxembourg delegation requested thatastatement
shouldbeenteredintotheminutesoftheCouncilmeetingof20May
1975statingthatLuxembourg wouldcomplywiththetimelimitpro­
videdforinArticle16.totheextentthatthelaws,regulations or
administrative provisions tobetakendidnotdependontheresultsof
thenegotiations whichitmustconductwithBelgiumandFrancein
accordance withArticle1(2)oftheDecision.
IntheNetherlands ,aworkingpartyconsisting ofrepresentatives of
theGovernment andtheNShasbeensetuptopreparethemeasuresto
betakenforimplementing thisDecision.

TheCommission usedthisinformation asabasisfortheopinionswhicn
itsenttotheGovernments ofthefollowing MemberStates.
1.Belgium30June1976/CC76)1043final,/
2.Germany12July1976/"c(76>1115final./
3.France23November1976/C(76)1855final_7
4.UnitedKingdom2February1977/C(77)94final_7 (1)
5.Ireland3March1977/~C(77)220finalj
6.Italy3May1977/~C(77)514final_7
7.Denmark 7June1977/"c(77)670final./
ExceptinthecaseofIrelandandDenmark,theseopinionsafterdue
consideration oftheexistinglegalpositionoftheirrailwayscited
provisions oftheDecisionwhichtheCommission considered hadnotbeen
implemented satisfactorily .
Withoutenteringintothedetailofthesedocuments,itishowever
interesting tospeci'fyhowtheCommissioninterprets' -thema,,nProv1"
sionsoftheDecisionof20May1975andthewaythattheMemberStates
havesofarimplemented them.
Sufficient independence toachievefinancialequilibrium separation
ofassets,budgetsandaccounts (Article 2)
29.Themainobjective oftheDecisionof20May1975isthelongterm
achievement offinancialbalancebytherailwayundertakings .Tothis
end,theundertaking shouldhavesufficient independence asregards
management,administration andinternalcontroloveradministrative .
(1)TheNorthernIrelandRailways CompanyLtd(NIR),whoseoperations ar
furthermore basically ofaregionalnature,posesaspecialproblem.
TheBritishGovernment isstudyingthissituation .

-29-
economic andaccounting matters.TheDecision doesnotdefinethis
independence ingreaterdetailbuttheseparation oftheassetsofthe
budgetandtheaccountsoftheundertaking fromthoseoftheStateisa
minimumrequirement .
Alltherailwaysinquestion meetthisrequirement eitherbecausethey
possesslegalpersonality liketheSNCB,theSNCF,theCIE,theCFL,the
NSandBRorasaresultofaLaw,asinthecaseoftheDBwhichmust
II
beadministered intheformofaspecialfundofthecentralgovernment .
lackinganylegalpersonality ",ortheFS,organized asanindependent
undertaking ("aziendaautonoma"),orsimplyasaresultofadefacto
situation asinthecaseoftheDSB.
However,-theimportance attachedtotheachievement offinancial equi­
libriumbytheDecision of20May1975appearstojustifytheinclusion
ofthisobjective inoneformoranotherwithintherulestheGovern­
mentslaydownfortheirrailways.
InBeIgiurn,thisisexpressly laiddownintheGovernment 'scommuni­
cationtotheSNCBof30November 1976.
InDenmark,thisobjective resultsnotonlyfromthedirectapplicability
oftheDecision totheDSBbutalsofromaministerial circular of
1April1970whichstatesthatthedirector-general oftheDSBmustrun
theundertaking inconditions meetingtherequirements ofacommercially
soundandeconomically well-administered undertaking .
ThesameistrueofGermanywheretheobligation toachievefinancial
balanceresultsnotonlyfromthedirectapplicability oftheDecision
butalsofromArticle 28oftheFederalRailways lawwhichprovides
formanagement according tocommercial principles withtheaimof
coveringexpenditure ,including reserves,fromrevenue.

InFrance,the1937Convention ,amendedin1971,statesthattherevenue
intheSNCF'soperating budgetmustalwayscoverexpenditure .
InIreland,thequestion offinancial balance hasbeendealtwithinthe
1974Transport Actwhichstatesthatoperating expenditure mustnot
exceedrevenue,including thecompensation grantedbyParliament .
InLuxembourg ,thestatutes oftheCFLprescribe theaimoffinancial
balance .
AsregardstheUnitedKingdom,theRailways Board'sfinancial obligations
arelaiddowninthelawof1962.Underthe1968law,theBoardmust
ensurethattherevenueoftheundertaking anditssubsidiaries should
coverstheirexpenditure takingoneyearwithanother.
IntheNetherlands ,theNSconstitutes alimitedliability company
therebyhavingindependence ofmanagement andtheobjective offinan­
cialequilibrium .However,theDutchGovernment isexamining whether ,
othermeasures arenecessary forensuringfullcompliance ofnational
regulations withtheCouncilDecision .
InItaly,ontheotherhand,thereisnoprovision mentioning either
theaimoffinancial balanceortheprinciples ofeconomic management .
Thisquestion mustbedealtwithintheproposed lawreform.

Business plans,possibly multiannual ,andfinancial programmes
(Articles 3,4,5and13)
30.Theprovisions onthedrawing upofbusinessplansandfinancial pro­
grammes maybeconsidered tobeamongthemostimportant contained in
theDecision of20May1975ontheimprovement ofthesituation of
therailways .Theseplansandprogrammes mustbenotifiedtothe
Commission sothatitcandrawupitsbiennial report.
Inthisconnection,theCommission considers that,evenifArticle 3
oftheDecision doesnotexpressly statethattheplanstobedrawn
upshallbemultiannual ,theseplanscouldhardlyfulfilltheirpur­
poseiftheyrwerenot.
II
TheDecisionstatesthattheseplansmustbedrawnupwiththeaim
ofachieving financial balanceoftheundertaking aswellastheother
technical,commercial andfinancial management objectives .Theplan
shallalsolaydownthemethodofimplementation "(article4(1));they
mustincludetheinvestment andfinancing programmes (article 3)and
settletheprocedures underwhichrepayments ,consolidations and
conversion ofpreviousloansaretobeeffected,andtheproportions
inwhichnewinvestments maybefinanced frominternal sources,by
borrowing orbydirectStategrants(Article 5(1)).
Thebusiness planmustbeanindependent document;budgetentries,
evenaccompanied bycomments intheexplanatory memorandum ,cannot
meettheserequirements .
'v

Finally,thereisthequestion ofthedifference betweenthebusiness
plandescribed aboveandthefinancial programme provided forby
Article 13oftheDecision .Thesetwoitemsarenecessarily comple­
mentary.TheCommission considers thatthebusiness planmustcoverthe
undertaking 'sfuturemeasures toachievefinancial balanceinallsectors
andsetouthowthisplanistobefinanced,e.g.modernization ofcer­
tainlines,introduction -ofnewrollingstock,closureoflinesorinstal­
lationsorsuspension ofoperations ,changesinstructure ,etc.The
financial programme ontheotherhandleadsonfromthebusiness plan
andhastosetouthowtheundertaking istoachievefinancial balance,
possibly bymeansofadeficitsubsidy.
Thevarious MemberStateshaveimplemented theseprovisions asfollows.
Initsmemoof30November 1976theBelgianMinister ofTransport asked
theSNC8todrawupaseparate multiannual business planoutsidethe
budgettoinclude,apartfromdataconcerning thefinancial year,fore-■
castsforoneormoreyearsfollowing .TheMinister considers that
thebusiness planandthefinancial programme constitute awholeand
formonesingledocument .HethusaskedtheSNCBtosubmitproposals
tohimwhenpreparing thenextbudgetary forecasts anddrawing upthe
business planandfinancial programme .
InDenmark,theDSBhasdrawnupa"plan1990"fortheimprovement
ofitssituation between 1976and1990.Itconsists ofaninvestment
planand-financing planandservesasabasisforthedrawing upof
five-year plansindicating themeasurescontemplated ,theirorderof

-33-
priority andthemethodsoffinance.TheDanishGovernment considers
thesefive-year plans,thefirstofwhichcoverstheperiod1977/78-
1981/82>asbusinessplans;theresulting figuresforthefinancial
programmes appearinaspecialsectionofthefinancelaw.Theywill
taketheformoffinancebills.Theselawsalreadycontaindatafor
thelastcompleted financial yearanddataforthefinancial year
underway andforthethreefollowing years.
»
AdraftorderbytheGermanFederalMinistry ofTransport addressed
totheDBandnotified totheCommission on31March1976statesthat
theDBshalleveryyearsubmititsinvestment projectsand business
planforaperiodoffourorfiveyearsalongwiththemultiannual
budgetary forecasts .TheDSwillestablish theeconomictrendfor
theperiodconsidered onthebasisofthisplanandproposethe
measures neededtoachievefinancial balance.
InFrance,thethirdsubparagraph ofArticle 18oftheamendment
of27January 1971totheConvention of31August1937provides
thatmultiannual contracts maybeenteredintobetweentheMinister
ofTransport andtheSNCF.Thesecontracts maybeconsidered asthe
plansreferred tointheDecision .TheFrenchGovernment considers
•thatthe1969contract programme,extended byamendment for1974-1975,
complies withtheprovisions relatingtothefinancial programme but
the"contract programme "hasnotyetbeenrenewed.TheSNCFiscur­
rentlydrawing upaplanofoperation .Thisplanwillbesubmitted
totheresponsible authorities withinanunspecified timelimitand
mayformthebasisforabusiness plan.Butthesecontracts areonly
optional intheamendment whiletheDecision makesthemcompulsory ."
ThishasbeendrawntotheFrenchGovernment 'sattention .

-34-
InIreland,acommittee consisting ofrepresentatives fromtheMinistry
forTransport andPower,theMinistry forFinanceandtheCIEwasset
upunderArticle 16ofthe1950Transport Act.Itwasinstructed to
drawupabusiness planandfinancial programme .Theopinionsentto
theIrishGovernment on4March1977drawsattention totheusefulness
ofmultiannual programmes .
IntheUnitedKingdom,Article 24ofthe1962Transport Act,supple­
mentedbyArticle4(2)and(3)ofthe1974Railways Act,statesthat
theRailways Boardshalldrawupitspolicyanditsbusiness plansand
thoseofitssubsidiaries .Thisprovision maybeconsidered ascomply­
ingwiththeconditions laiddownbytheDecision.Thedocuments submit­
teddonot,however,makeanymentionofmultiannual programmes .
IntheNetherlands ,therearenospecificprovisions fortheestablishment
ofmultiannual programmes .
r
ThesameistrueinItaly.LawNo377of14August1974concerning
aprogramme ofassistance forthemodernization andenlargement of
thecapacity oftheFSprovidesforgraduated investment andthefinancing
thereofandmaybeconsidered aspartoftheplansandprogrammes re­
ferredtobytheDecision butitdoesnotcovertheotheraspectspro­
videdfor.TheItalian Government hasbeenaskedtotakethene­
cessary measures .
r■
InthecaseofLuxembourg ,wheretherearealsonoprovisions ofthis
type,thedraftrevision oftheCFL'sstatutes includes proposals which
wouldsettlethisquestion incomplete accordance withtherequirements
oftheDecision .
* *
*

-35-
TheCommission hassofarreceived onlyoneprogramme drawnupbythe
Danishrailways andDanishGovernment .Astheexamination ofthisdocument
hasnotbeingterminated ,theCommission isunabletoexpressan
opiniononwhetheritcompliessatisfactorily withtheprovisions of
theDecision of20May1975.
Consultation procédure
32.Article 4oftheDecisionobliges MemberStatestoestablish aconsultat ion
procedure .Mereconfirmation oftheexistence ofinformalconsultation
betweentherailways andtheresponsible authorities doesnotsatisfy
thisobligation .TheStatemustlaydownthisprocedure,thefirst
stageofwhichisindicated inArticle 3oftheDecision whichstates
thattheplanmustbesubmitted bytherailwayundertaking .
33.Thesituation inthevariouscountries isasfollows .
Theaforementioned memofromtheBeIgianGovernment totheSNCBstates
thattheSNCBshallsubmitthebusiness plantotheTransport Admi­
nistration aspartoftheannualpreparation ofbudgets;theplanwill
thenbethesubjectofconsultation betweentheSNCBontheonehand
and,ontheother,theresponsible authority andotherinterested
parties.
InDenmark ,,theconsultation procedure formspartofthebudgetary
preparation .IttakesaccountoftheDSB'sspecialinstitutional
position andstatesthattheDSB'sdirector-general shallsubmitthe
,.projects totheMinistryforPublicWorks,theresponsible body,
whichwill,afterdiscussion ,sendthemtotheMinistry forFinance.
Ifthelatterraisesanyobjection,theproblemsarediscussed jointly

bytheMinistries forFinanceandforPublicWorksandthedirector-
generaloftheDSBwhomaythusexpresshisviewpoint .TheGovernment
settlesanydisagreements thatcannotbesolved.Thefinancebillis
senttotheParliament bytheMinisterforPublicWorks.
Article 30oftheGermanFederalRailways LawstatesthattheDB's
management boardshallsubmitthemultiannual budgettotheMinister
forTransport forexamination bytheGovernment andfordiscussion
withtheDB.However,theseprovisions dohotguarantee theDBafor­
malrighttotakepartindiscussions ontheprogramme ;theGerman
Government isdrawing upadditional provisions onthissubject.
Theagreement ofcontract programmes betweentheFrenchGovernment
andtheSNCFundoubtedly implies acollaboration confirmed bythe
exchange-of lettersbetweentheMinistry forTransport anatheSNCF.How­
ever,butthisprocedure isnotformallylaiddownbythesedocuments .
InIreland,theestablishment underArticle 16ofthe1950Transport
Actofa-committee consisting oftheresponsible Government departments
andtheCIEandresponsible forlayingdowntheextentandcontext
ofthebusiness plansandfinancial programmes meetstherequirements
oftheDecision intheCommission 'sview.
InItalyandtheNetherlands,therearenoprovisions providing forthe
establishment ofaconsultation procedure .
Therearenoprovisions onthissubjectinLuxembourg eitherbutthe
proposed revision oftheCFL'sstatutesstatesthatthebusiness plans
submitted bytheCompanyshallbeadoptedbytheGrand-Duchy 's
MinisterforTransport withinaprocedure laiddownbyhimandbasedon
collaboration betweenhimandtheCompany.However,althoughthis
provision mayformalegalbasis,itdoesnotlaydowntheprocedure .

-37-
IntheUnitedKingdomtoo,Article4(2)ofthe1974Railways Actmay
serveasabasisforconsultation procedure butdoesnotlaydownthe
procedure tobefollowed .
Rulesconcerning amortization ,depreciation ,reserves .,distribution
ofprofits andcovering ofdeficits (Article7)
34.Thesituation regarding theimplementation ofthisprovisions isas
follows .
InBelgium,Article 42oftheSNCBstatutes regulates theprovisions for
therenewalfundandtheamortization reserve .Article 43ofthe
statutes andArticle 7ofthelawof16March1954covertheestablish­
mentofareservefundandtherulesrelating tothemethodforcal­
culating amortization andreserves .Article 44ofthestatutes deals
withthedistribution ofprofits.Thereisnoprovision dealingwith
thecovering ofdeficits .
InDenmark,theadministrative provisions of16February 1934laydown
thelifetime ofinstallations androllingstockandamortization is
conducted onthisbasis.Thereisnoreserve fundbecause ofState
ownership .Anyprofits gotowardstheStatewhiledeficits arecovered
bytheTreasury .
Theprovisions submitted byGermany coverthesectorsreferred toin
Article 7oftheDecision .Theyalsolaydowntherulesconcerning the
procedure andfundsforamortization ,reserves anddistribution ofany
profits.Asforthecovering ofdeficits,itsetsoutonlyaruleof
procedure ,whichdoesnotmeettheobligations oftheDecision .
..

-38-
InFrance,Article20(d)oftheamendment of27January 1971tothe1937
convention statesthattheSNCF'saccounts shallbekeptinaccordance
withcommercial andindustrial practice andinconditions laiddownbythe
Government orderof18December 1958.Alltheseprovisions satisfythe
conditions ofArticle 7(1)oftheDecision .Articles 24and25of
theamendment dealwiththedistribution ofprofits andthecovering of
deficits .
*nIreland,theprocedure complying withArticle 7oftheDecisionis
basedprincipally onArticle 34ofthe1950Transport Actandthe1963
Companies Act?
InItaly,.LawNo62of1March1964whichappliestotheFSbudgetdoes
notdealwiththecalculation ofamortization whileLawNo308of11
April1953,whichshould,according totheItalianGovernment ,settle
thequestion ofthedistribution ofprofits,concerns onlyonespecial
caseasdoesthelawof23December 1976whichdealswiththecovering
ofdeficits .
InLuxembourg ,Article28(2)oftheCFL'sstatutesstatesthatexpen­
ditureandrevenuemustbalance.Article 32regulates amortization and
payments totherenewal andreservefundsandArticle 34coversthe
distribution ofprofits;therearenoprovisions forthecovering of
deficits .
IntheNetherlands ,theNSisalimitedcompanysubjecttotherules
ofthecommercial codeanditsaccountsareadaptedtothiscode.
Since1938amortization hasbeencalculated onthebasisoftherenewal
valueandtheeconomic lifetime .Thereisalsoareserve fund.
Article 15ofthestatutesstatesthattheGeneralAssemblyshalldecide
onthedistribution ofprofits.However,therearenoprovisions
'v•relatingtothecovering ofdeficits .
■

- -
Finally,intheUnitedKingdom /.Article18(2)ofthe1962Transport Act
laysdowntherulesofamortization andtherulesforformingreserves;
Article42(8)ofthe1968Transport Actregulates thedistribution of
profits;therearenorulesonthecovering ofdeficits .
Tosunup,thoughmostMemberStatesareabletosubmitprovisions comply­
ingwiththerequirements oftheDecision onothersubjects,onlyFrance
andIrelandcurrently complyasregardsthecovering ofdeficits,given
thatthereference toArticle 13oftheDecision whichallowsdeficit
subsidies doesnotappearadequate asameansfordealingwiththis ».
question .
Breakdown ofrevenueandexpenditure according tothevariousoperations
conducted bytherailwayundertaking (Article 8(3))
35.Theserequirements areprovisionally aminimumstandardtowhichthe
breakdown ofrevenueandexpenditure intheaccounting system,budget
andannuataccounts,mustcomply.MostoftheMemberStatescomplyin
thismatter.TheBelgian Government 'smemoof30November 1976tothe
SNCBprescribes thisbreakdown .
Asregards Denmark,theDecision isdirectly applicable totheDSB;
however,theundertaking isunabletoaccountseparately forrevenuefrom
thetransport byferryofrollingstockandrailwaypassengers asthis
formsanintegralpartofrailtransport .Revenuefromtheferrying of
commercial vehicles andprivatecarsandtheirpassengers areaccounted
forseparately .

-40-
InGermany,theDBproduces afinancial report "andastatistical summary
showingtheresultsforalltransport sectorsandotheractivities .
InFrance,thisprovision iscoveredbyArticles 18(b)and20(d)ofthe
Amendment of27January 1971totheConvention of31August1937.
*nIreland,Article 34oftheTransport Act,1950,providesthatthe
Board"keepallproperandusualaccounts ofallmoniesreceived or.
expended byitandinparticular shallkeepallsuchspecial
accounts astheMinister shalldirect".
InItaly,theFSwillbeabletopresentitsannualaccounts incon­
formitywiththeDecision from1976onwards.
InLuxembourg andtheNetherlands,theprovisions concerned areinthe
processofbeingimplemented .
Finally,intheUnitedKingdom,althoughArticle 24oftheTransport
Act,1962,doesnotprescribe thedistinctions forwhichprovision is
madeintheDecision,itdoesprovidefortheGovernment tolaydown
theprovisions andconditions fortheannualfinancial reports.Itis
therefore uptotheUKGovernment tocomplywiththeDecision.
Publication ofatableofStateinterventions inanAnnextotheannual
accounts (Article 8(5))
36.Article10(1)ofCouncilRegulation (EEC)No1192/69of26June1969
alreadyprovidedthat"theamountofthecompensation paidinrespect
ofeachclassofnormalization shallbeshowninatableannexedto
theannualaccounts oftherailwayundertaking .Thetableshallshow

separately amountsofcompensation received onanestimated basis,and
amountsreceived orpaidinsettlement oftheoutstanding balanceas
provided inArticle 9.
Thetableshallalsoshow,inrespectofeachpublicserviceobligation ,
theamountsofcompensation grantedunderRegulation (EEC)No1191/69".
Article 8(.5)oftheDecision of20May1975notonlyconfirmed this
obligation butaddedthatthetable"mustshow,inaddition,allother
sumsgrantedtotherailwayundertaking duringtheyearbywayoffi­
nancialassistance orcompensation ".
TheCommission hasbeenendeavouring toensurecompliance withthis
provision since1969.Todate,BeIgium,Germany,IrelandandItaly
havecompliedtosomeextentwithRegulation (EEC)No1192/69.
Francehasundertaken tomakethenecessary arrangements asfromthe
nextfinancial year,andDenmarkhasstatedthatDSB's1975/76report
tobepublished shortly,wouldincludethetable.Asregardsthe
Netherlands ,NS's1976reportwillalsoincludethegeneraltableof
directfinancial assistance .
TheotherMemberStateshavebeenaskedtocomplywiththeprovisions
inquestion .
Procedures forappointing themembersofthegoverning bodiesofthe
railwayundertaking (Article 12)
AlltheMemberStateshaveprovisions onthismatter,andtheyappearto
meettherequirements oftheDecision .
InBelgium,Article 19ofSNCB'sStatutes laysdowntheprocedures for
appointing theBoardwhichconsists oftwentyonemembersrepresenting
variousadministrative ,economic andsocialsectors.Article 26ofthe

-42-
Statutes Laysdowntheconditions forappointing theDirector-General .
InDenmark,LawNo109of1April1969tStk.2)providesthatDSB'sBoard
shallconsistoffifteenmembers,theChairman beingappointed bythe
Minister forPublicWorks;eightmembersarefromParliament ,threefrom
thetradeunionsandthreearerepresentatives ofindustry,commerce and
agriculture .
InGermany,Articles 8and10oftheFederalRailways Lawspecifythe
numberofandtheprocedure forappointing themembersofDB'sManaging
Board(oneChairman andthreemembers )andsupervisory Board(twenty
members )andprovidethatthelattermustbeselected fromadministrative
orsocialgroups.
InFrance,theprocedure forappointing themembersoftheBoardandthe
Directors-General andDeputyDirectors aswellastheSecretary-General
islaiddowninArticles 7,8,9,13and15oftheConvention of31
August1937.Theeighteen Boardmembersarefromeithertheadministra­
tion,theformernetworks orthetradeunions.
*nIreland,theappointment ofthemembersofCIE'sgoverning bodyis
laiddowninArticles 6and7oftheTransport Act,1950.TheChairman
andthethreetosevenBoardmembersareappointed bytheGovernment .
InItaly.OrderinCouncil No598of7May1948anditssuccessive
amendments providethatFS'sBoardshallbechairedbytheMinister of
Transport .TheBoardconsists oftheStateSecretaries forTransport
andtheDirector-General ofFSandtwentymembersfromandappointed
bythevariousadministrative ,economic andsocialsectors.

InLuxembourg ,Article 13ofCFL'sStatutes regulates themembership
andappointment oftheBoard.TheBoardismadeupoftwenty-one members
ofwhichelevenareLuxembourg nationals,theothersbeingappointed by
theBelgian andFrenchGovernment (fivememberseach).TheDirector of
CFL,alsoaLuxembourg national,isappointed inaccordance withArti­
cle29oftheStatutes .
IntheNetherlands ,theprocedure forappointing thegoverning bodiesis
laiddowninArticles 6,8,9and10ofNS'sStatutes .Administration
istheresponsibility offourDirectors,including oneChairman-Director ,
appointed bytheShareholders GeneralMeeting .TheSupervisory Board;
alsoappointed bytheShareholders GeneralMeeting andconsists of
sixteen members,appointsitsChairman,DeputyChairman andaSecretary-
Generaleachyear.ItshouldbepointedoutthattheStateisNS's
onlyshareholder .
IntheUnitedKingdom,Section 1oftheTransport Act,1962,amended
bySection 38oftheTransport Act,1968,provides thattheMinister
shallappointtheChairman oftheBritishRailways Boardandnineto
fifteen members chosenfortheirexperience andabilityinthefields
oftransport,industry,commerce,finance,administration ,applied
science ortradeunionism .
B.ACTION TAKENBYTHECOMMISSION
Anumberoftheprovisions oftheDecision of20May1975providefor
theCommission totakeactioninvariousareas.Itisworthtaking
stockofthesematters andofwhathasalready beenachieved.

-44-
39.Examination oftheimplementing provisions betaken bytheMemberStates
Asmentioned intheprevious chapter,mostoftheMemberStateshavein
accordance withArticle 16(1)consulted theCommission onthemeasures
whichtheyintendtointroduce inordertoimplement theDecision .The
Commission hasaddressed -formalopinions totheseMemberStates,more
often'that notmakingsomeobservations .TheCommission willcontinue
itseffortstoensurethatalltheMemberStatescomplyfullywiththe
Decision,particularly asto
-thedrawing upandthecontentofthebusiness plansandfinancing
programmes (Articles 3,4,5and13)
-compliance withtheminimumaccounting provisions (Article8(3))
-thepublication ofthesummaryofStatefinancial intervention inan
Annextotheannualaccounts (Article 8(5)).
Thefactthatitwillstillbesometimebeforethenationalprovisions
arebroughtintolinewiththeessential principles oftheDecision
oughtnottodetertheMemberStatesfromintroducing alltheappro­
priatemeasures now.
AO.Accounting andcosting
OnthebasisofArticle8(2),theCouncilshalladoptthenecessary
measurestoachievecomparability betweentheaccounting systemsand
annualaccounts ofrailwayundertakings andlaydownuniformcosting
principles .
TheCommission senttotheCouncil on17March1977aproposalfora
Regulation (1)onthenecessary measurestoachievecomparability between
theaccounting systemsandannualaccounts ofrailwayundertakings ,and
(1)COM(77)76final

-45-
willshortlybepresenting aproposalforaCouncilRegulation onthe
uniformisation ofcostingprinciples .
41.Procedures forgranting compensation fortariffobligations notcovered
byRegulation (EEC)No1191/69
Article9(2)oftheDecisionrequires theCommission topresenttothe
Council,before 1January1978,proposals ontheharmonization ofthe
procedures forgranting compensation fortariffobligations notcovered
byRegulation (EEC)No1191/69.TheCommission'sservices havealready
consulted therailwayandgovernment experts ontheprovisions tobe
made.AproposalwillbelaidbeforetheCouncil bythedatefixed.
42.Co--oneration betweenrailwayundertakings
ti
Article 11(1)oftheDecision providesthattheMemberStatesshall/
inconjunction withtheCommission /investigate measures likelyto
promoteco-operation betweentherailways.
Atitsmeetingof16December 1976/whenadopting alettertotheGroup
oftheNineRailways oftheUIC/theCouncilnotedthattheCommission
intendedtotakethenecessary steps(pursuant toArticle 11(1)ofthe
Decision of20May1975)tocooperate withtheMemberStatesandthe
railwayundertakings onastudyofsupplementary measures tofurther
co-operation betweenthelatter....TheCommission intendstoprepare
aworkprogramme tothisendassoonaspossible .Before 1January 1978/

-46-
theCommission willsubmitaprogressreport'totheCouncil onthe
preparation ofthisprogramme .
Preparatory workhasbeenstarted,inclosecollaboration withthe
GroupoftheNineRailways oftheUIC,todrawupashortand
medium-term programme ofcooperation ,mainlyon:
-infrastructure
-thecrossing offrontiers
-commercial policy
-operational methods
-purchasing policyandtechnical standardization .
Thisprogramme mightincludeconcrete measures envisaged atCommunity
level.
43.Afewdetails canbegivenonwhattheCommission hasalreadydone
regarding •thecrossing offrontiers .WhentheCounciladoptedthe
Decision of20May1975,theCommission statedthat
"itconsiders thatimproved cooperation betweenrailwayundertakings
"isessential forthefutureofthismodeoftransport .Asithas
"already -statedonseveraloccasions,itwilltakeallthenecessary
"initiatives topromotethisimprovement .Thiscooperation isstill
"hampered byobstacles mostofwhichareinareasotherthantransport
"butwhichare,asageneralrule,nowbeingdealtwiththrough mea-
"suresinthevarioussectors concerned .TheCommission willensure
"thatthesemeasures andespecially thosewhichareintendedtoremove
"obstacles relatingtothecrossing offrontiers arezealously pursued.
"TheCommission willmakethenecessary proposals whereappropriate ."
TheCommission hasmadeasurveyofpublichealthandplanthealth
.jinspections forinternational carriage byrail,withthehelpofmost

-47-
oftherailwayundertakings intheCommunity aswellastheAustrian
andSwissrailways .Theconclusions are:-
-Withtheexception ofaninspection ofliveanimalsattheplaceof
departure inFrance,nofrontierinspections arecarriedoutbythe
exporting countries forcarriageinsidetheCommunity .
-Thereasonsforthelongestdelaysduetoinspections onimportation
areasfollows : *
-thesplitting-up ofthetrain,
-thedifferences inworkinghourseithersideofthefrontier,
-nosynchronization oftheworkinghoursofthevariousoffices
atthefrontier (Customs,veterinary offices,etc.),
-noinspections atweekends .
-Certaininspections arerestricted toafewfrontier posts,therebyproducing
trafficdeviations .
-Thedevelopment ofcombinedtransport issometimes thwarted bycomplications
withplanthealthinspections ,e.g."kangaroo "transport offruitand
vegetables betweenRotterdam andMunich.
Therailways havemadesuggestions forimproving matterspendingreciprocal
recognition ofpublichealthandplanthealthcertificates madeoutinthe
exporting MemberStates : . '
-inspections insidethecountryinsteadofatthefrontier,
-fewerrestrictions tothecrossing ofcertaingoodsthrough
certainfrontier posts,
-betteradministrative organization toensuresynchronization of
inspections .

-48-
TheCommission agreeswiththesesuggestions /butwouldpointoutthatthe
principles ofabolishing compulsory frontierinspections hasalreadybeen
established .However/adistinction mustbemadeherebetweenplanthealth
inspections andveterinary andpublichealthinspections .
-P^ant_heaJLth_ins2ections
On21December 1976/theCounciladoptedDirective 77/93/EEConprotective
measuresagainsttheintroduction intotheMemberStatesoforganisms which
areharmfultoplantsorplantproducts .TheMemberStateshavetwoyearsor
fouryears/asthecasemaybe,tobringintoforceimplementing legislation .
UndertheDirective /well-defined conditions arelaiddownforcompulsory
inspections onimportation .
•1
-Veterinary andpubj.jc_hea_ltj^jnsgectjon s
Standard certificates foralltheMemberStateshavebeeninusesincethe
adoption ofCouncilDirectives 64/432/EECand64/433/EEConintra-Community
tradeinbovineanimals andswineandthefreshmeatofbovineanimals,
swine,sheep,andgoatsandsolipeds.Theintroduction ofastandardcerti­
ficateobviously simplified intra-Community trade/particularly asregards
thecrossing offrontiers,whichiswhytheCourtofJusticeoftheEuropean
Communities hasmadeseveralpronouncements againstveterinary andplant
healthexaminations atthefrontier .Inajudgment of15December 1976(Case
35/76Simmenthal SPA/MonzavItalianMinister forFinance)/theCourtagain
confirmed thisattitude veryclearly/rulingthat"veterinary andpublic
healthinspections atthefrontier/whethercarriedoutsystematically ornot,
ontheoccasion oftheimportation ofanimalsormeatintended forhuman
consumption constitute measures havinganeffectequivalent toquantitative
restrictions withinthemeaningofArticle 30oftheTreatyofRome/which
areprohibited bythatprovision /subjecttotheexceptions laiddownby
Community lawandinparticular byArticle36oftheTreaty(whichconcerns,
>amongotherthings,theprotection ofthehealthofhumanbeingsandanimals)"
TheCourtcontinues bysayingthat"systematic veterina-y andpublichealth
inspections atthefrontier oftheproducts (animalsandmeats)mentioned in
Directives 64/432and64/433arenolongernecessary or,consequently ,ju­
stified underArticle 36."'

-49-
TheCourtdoesadmit,however,thatalthough,inprinciple ,amere
examination ofthedocuments (healthcertificates )whicharerequiredto
accompany theproducts shoulddisclose whethertheconditions withregard
tohealthhavebeenfulfilled,occasional veterinary orpublichealth
inspections arenotruledout,providedthattheyarenotincreased tosuch
anextentastoconstitute adisguised restriction ontradebetween Member
States."
»!
44.Reportontheprospects fortheintegration ofrailwayundertakings
Article 11(2)requirestheCommission topresenttotheCouncil,before
1January 1979,areportontheobjectives tobepursuedinthelongterm
andthemeasures tobetakentopromotetheintegration ofrailwayunder­
takingsatCommunity level.
At:present,fe'uchintegration wouldappeartobealong-term productof
arecooperation .TheCommission 'sservices/assembling thedatarequired for
thisreportwhichtheywilldrawupinconjunction withalltheinterested
parties.
45.Financial balance andadaptation ofRegulations (EF.C)No1191/69and
(EEC)No1107/70
Article 15(1)requirestheCommission topresenttotheCouncil,before
1January1980,proposals tofixthetimelimitandconditions forachieving
thefinancial balanceoftherailwayundertakings .Thismakesitpossible
toawaitthefirstresultsoftheoperation oftheDecision beforestudying
thismatter.
-46.Article15(2)requirestheCommission topresentproposals totheCouncil
'v
,bythesamedateconcerning theadaptation ofRegulations (EEC)No1191/69
and(EEC)No1107/70inordertotakeaccount,withintheframework ofthe
linkswhichexistbetweentransport andothereconomic endsocialsectors,
of'thepublicserviceobligations imposedontherailways.
Topreparetheseproposals,theCommission hasputanumberofquestions to
theAdvisory Committee onTransport whichwillprobablygiveitsformalopinion
inthesecondhalfof1977.Therewouldthenbenothingtostoptheseproposals
beingprepared .

CHAPTER IV-CONCLUSIONS
47.InthisreporttheCommission hasintented :
-toreportontheapplication ofRegulation (EEC)No1191/69concerning
publicserviceobligations ,Regulation (EEC)No1192/69onthenormalization
ofaccounts andRegulation (EEC)No1107/70onaidsfortransport ;
-toindicate whathavebeenthefirstpractical effectsoftheimplementation
oftheCouncilDecision of20May1975.
r
AstheDecision of20May1975hasnotbeeninforceforverylong,thisreport
willnotyetbeableto"clearlyindicate theresultsachieved withparticular
regardtoanychangesinthefinancial situation oftherailwayundertaking "
sincetheimplementation oftheDecision .Thenexttwo-yearly reportshould
provide amorecomplete surveyonthesubject.
Nevertheless /theCommission hopesthat,whenthisreportisdiscussed,the
CouncilwilllettheCommission knowwhatchangesitwouldwishtoseeinthe
presentation andcontentoffuturereports.
A.APPLICATION OFREGULATIONS Nos1191/69,1192/69AND1107/70
48.TheaimoftheaboveRegulations istoindicateclearlythecostsincurred
byanundertaking whichdonotarisefromitsownmanagement ,theideabeing
togradually definetheundertakings actualdeficit moreandmoreprecisely ;
thelong-term aimistoeliminate thisdeficit andtherefore thesubsidies at
presentgrantedtocoverallorpartofthedeficit.
Ascanbeseenfromthefigures andcommentsinthisreport,itisclearthat
progress hasbeenmadeandthatthishasmadethefinancial situation ofthe

-51-
railways moretransparent .TheCommission feels,however,thatthereisstill
arelatively largesectorinwhichtheauthorities arefreetodecidearbitarily
whatproportion ofthecostsresulting fromtheirintervention theyarewilling
tobear,ifthissituation continues thereisariskthatitwillpreventgreater
transparency .Thesituation ispartlytheresultoflackofprecision inthe
textoftheregulations ,andpartlytheresultoftheoptionalnatureofthe
provisions concerned .
49.Theeffectoftheapplication ofthethreeRegulations isthatthesumspaid
incompensation ,aidandotherfinancial intervention bytheMemberStatesto
theirrailwayundertakings isgradualy increasing .Thisiscertainly duein
parttotheinflationary trendincosts,butalsopartlytothedeterioration
oftheposition oftherailwayundertakings inthetransport market.However,
itwouldseemthatthetendency hasalsobeenaffected bytwootherfactors :
(a)Withveryfewexceptions ,noneoftheMemberStateshaseliminated anyof
thevariousobligations imposed ontherailwayundertakings ;theyhave
r»
limitedtheiractiontobearingpartorallofthecosts.Untertheterms,
Ο
andinaccordance withthespirit,ofRegulation (EEC)No1191/69the
Statesshouldneither imposenormaintain apublicserviceobligation until
thesocialandeconomic advantages anddisadvantages ofallthepossible
solutions havebeenassessed,anduntilthesolution involving theleast
costtothegeneralpublichasbeenselected .
V.• r» -1
TheCommission doesnotunderestimate thecomplexity oftheprocessof
quantifying data,particularly external data,whichhavetobeincluded
inthistypeofassessment .Somefactorscanonlybeassessedqualitatively .
Butitstillleavesopenthequestion whether,particularly inthecaseof
veryimportant decisions,anapproximation ofthemacroandmicro-economic
factorsalonewouldnothavemadepossibleeitherthereduction ofthe
obligations ,orhaveprovided amorerational basisforthedecision'to
'maintaintheobligations .

AsconcernRegulation (EEC)No1(92/69/theprocessofnormalization
"doesnotrelieve MemberStatesoftheirownresponsibility foreliminat­
ing,asfaraspossible existing >causesofdistortion "/asisstatedin
thepreambletotheRegulation .ItshouldbenotedthattheMember
Stateshavenotchallenged thesituations whicharethemselves the
reasonforthecategories ofnormalization .
TheCommission willmakeeveryefforttoencourage amorepositive approach
tothemainproblems whenitsubmitsproposals foramendingthetwo
Regulations totheCouncilonthebasisofArticles 9(2)and15(2)ofthe
Decision of20May1975.
(b)Itisalsoanopenquestion whethertheundertakings themselves haveused
everyopportunity forcuttingtheircostsandincreasing theirreceipts.
Even,ifincertaincasesthepossibilities arelimited/particularly as
regardstheactivities subjecttopublicserviceobligations /theCommunity
provisions /notablyArticle 12of.Regulation (EEC)No1191/69and
Article2(2)oftheDecision of20May1975/leavenodoubtastothe
undertaking 'sobligation toensureeconomic management inthepublicser­
vicesectoraswellasinothersectors.
50.Allowing fortheabovecomments/theactiontakenbytheMemberStatesin
theareascoveredbythethreeRegulations hasnevertheless established certain
.preconditions essential fortheimprovement ofthesituation required bythe
Decisionof20May1975/particularly forachieving themainobjective ofthis
Decision/namelyfinancial equilibrium .Apartfromanimprovement asregards
thetransparency ofthefinancial situation oftherailwayundertakings ,the
threeRegulations havecreated afirstCommunity basisforanalysing the
railways' problems andtheirsolutions attheleveloftheundertakings as
wellasatGovernment andCommunity levels.•

-53-
B.IMPLEMENTATION OFTHEDECISION OF20MAY1975
51.ThisfirstCommunity basishasbeenconsiderably enlarged bytheDecisionof
20May1975whichcoverspractically alloperational andstructural aspects
oftheactivities oftherailwayundertakings .Takingthediverseeconomic,
legalandpolitical situations intheMemberStatesasastartingpoint,the
Decisionisbasedontheconceptofconcerted actionbytheundertakings and
thegovernments todevisesuitable measurestoimprovethesituation ofthe
undertakings .ItalsoenablestheCommunity bodiestoplayanimportant role
inharmonizing andpromoting actionundertakin bytheMemberStatesandthe
railways .TheCommission planstoplayaveryactivepartinthisconnection .
i
52.InthefirstplacetheCommission considers thattheCommunity istheappro­
priatevehiclethroughwhichajointanalysis ofthebasicproblems ofthe
railways andtheirsolutions maybeundertaken ,particularly forproblems
extending beyondthestrictly national sphere.Certainaspectsofthesituation
inwhichtherailways arecaughtupareverysimilarineachoftheMember
States-theconstantly risingcosts,particularly forlabour,thedeterioration
oftheposition oftherailways inthemarket,theconstantly increasing burden
onthenational budgetswhichtheoperating expenses oftherailways represent
andtheresulting disadvantages whenitcomestotheundertaking ortheowner
financing investment .
Thesecommonproblems andanyremedies couldtherefore beexamined atCommunity
levelsothattheMemberStatesandtheCommunity institutions could,more
accurately andwithmaximumcoherence,definetheroleoftherailwaysinthe
Community transport system.

-54-
53.Pursuant totheCouncilDecision of20May1975theimprovement ofthe
situation oftheundertakings shouldbeachieved bytwomainactions :
-drawing upbusiness andfinancial plans;and
-promoting cooperation betweentherailwayundertakings ,orevenaform
ofintegration ,atEuropean level.
Bothactionsrequireveryclosecooperation betweentheundertakings ,the
governments andtheCommunity institutions .
*»
54.Asregardsdrawing upbusiness andfinancial programmes ,twostagesmust
beclearlydistinguished :-
(a)theMemberStatesarefirstrequired toadoptgeneralpolicydirectives
takingaccountofthenational plansfortransport ,particularly transport
infrastructure .
TheCommission feelsthattheMemberStatescannotadoptthistypeof
directive withoutrespecting theCommunity 'sgeneralguidelines onsocial,
industrial ,regional,energy,economic andfinancial policyand,ofcourse,
theguidelines forthecommontransport policy.Wheretransport infrastruc­
tureisconcerned,theadoption bytheCounciloftheCommission 'sproposal
of5July1976introducing aconsultation procedure andcreating atran*"
1
sportinfrastructure committee willconsiderably easetheprocessofcoor­
dinating theactionsoftheMemberStatesasregardsinvesting and/or
disinvesting inrailwayinfrastructure .
(b)Oncethedirectives havebeenadopted,theundertakings arerequired to
submittheirmultiannual programmes whichwillbeagreedbytheStates
within alaiddownprocedure ofconsultation .Thisprocedure isanappro­
priatemethodforjointlyresolving thoseproblems inwhichconflicts
betweentheinterests oftheStateandoftheundertakings isinherent .
1
0JNoX207of2September 1976,page7.

-55-
TheCommission considers thatthebusiness programme shouldincludethe
following :
-fixingmanagement objectives -financial andotherStateintervention will
befixeddepending onwhethertheStateseekstoslowdown,stoporreverse
«
présenttrends;
-fixingthenetwork andservicesofferedinaccordance withtheseobjectives ;
-determing whatactivities shouldbesubjecttopublicserviceobligations ,
aswellasthecontentofthoseobligations .Definingtheundertaking 'scom­
mercialpolicy;
-setting upinvestment ,rationalization andmodernization programmes taking
intoaccounttheopportunities forfinancing provided underArticle 5ofthe
Decision of20May1975;
r\
-adjusting thenumberofstaff,takingintoaccountthesocialaspectsofthe
problem.n '
η ■·
Theoverallobjective ofallthemeasures envisaged shouldbethefinancial
equilibrium oftheundertaking .
• -V r .
55.TheCommission 'staskontheotherhandwillconsistinassessing theprogrammes
comminicatedtoitfromthepointsofviewofachieving financial balance and
thefuturerequirements oftheCommunity transport system.TheCommission will
assertitspointofviewonanyplannedrationalization andrestructuring mea­
suresenvisaged although implementation ofthelatterwillobviously dependon
theeconomic andpolitical demandsofeachMemberState,whilsttheCommission 's
•maindutywillbetoensureacertaindegreeofcoordination ,particularly as
regardsinvestment anddisinvestment measures .Asthenational railwaysystems
inEuropehavebeencloselyinterdependent foroveracenturyitwouldbedif­
ficulttoconceiveofanywayofchangingthestructure ofthenetwork and

-56-
servicesoffered byonenational undertaking withoutaffecting theunder­
takingsofneighbouring MemberStates.
Wherenecessary,theCommission mightbeobligedtoputsuitableproposals
beforetheCouncilifapolitical decision atCommunity levelwasrequired
inordertosafeguard Community interests inthisfield.
56".Asregardsencouragging cooperation betweenrailwayundertakings thisshould:
.-asfaraspossiblealleviate thedisadvantages ofthenationalnatureof
therailways andthuscontribute towardsachieving theobjective offinancial
balance;
-promotethe,integration oftheCommunity market.
Suchcooperation isessentially amatterfortherailways themselves butit
shouldbeassisted andencouraged bybothnational andCommunity authorities .
Asplanned,beforetheendof1977,theCommission willsubmittotheCouncil
acooperation programme,established incollaboration withtherailways and
4'thegovernments ,andsomepointsofwhichwillbeattainable inthenear
future.Theprogramme willmainlyincludecommercial cooperation inoperations
andsupplies Jfrontierobstacles andinfrastructures investment,particularly
inconnection withtheelimination ofbottle-necks .
Anyprogress inthisfieldwouldallowacautious beginning ondefining
integration formulae forwhichtheCouncilwillhavetheopportunity to
,•laydowntheguidelines onthebasisofthereportsubmitted bytheCommis­
sionattheendof1978.

ANNEX Ia)
COMPENSATIONS ,AIDS ANDOTHER FINANCIAL INTERVENTIONS
GRANTED BYTHE STATES TOTHE RAILWAY UNDERTAKINGS

.COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHESOCIETE NATIONALE PESCHEMINS DEFERBEL6ES(SNCB)
(Source:communication fromtheBelgiangovernment )
(inmillionnational currency )
% 1973 1974 1975 1976
estimate .
A.MAINTENANCE OFPUBLICSERVICE OBLIGATIONS 4 J
Regulation (tt-.C)No1191/69
Student seasontickets 688.61043.0 1399.0 1510.0
Seasontickets,certainsocialcategories 2390.2 3370.0 4592.9 5108.0
Ordinary seasontickets 1021.6 1216.0 1657.1 1576.0
Individual reductions !>12.7681.0 1232.8 1448.0
Fullfaretickets (refusal oftariff
increase ) 1653.5 2504.0 3715.9 4027.0
IBelgium-Luxemburg tariffs 26.4 26.0 24.4 25.0
IFlanders-(Ze land)tariffs '1.0 1.0 1.0 1.0
IContinued operation oflinesL"|47.0I329.2|884.0
n «-» 'f-t6'?94.0
η8888.0 12952.514579.0
B.NORMALIZATION OFTHEACCOUNTS OFTHERAILWA S
Regulation (EEC)No1192/69r
ClassIII-retirement &otherpensions ■6761.0 7853.0 9008.6 9676.0
IClass .IV-crossingfacilities 171.0 182.0 241.4 293.0
IClassVIII-wardamage 16.0 16.0 15.8 16.0
IClassX-recognition servicestocountry 40.0 41.0 39.7 47.0
IClassXI-additional familyallowances -.102.0 21.0 9.2 11.0
IClassXII-a)medical treatment 786.0 892.4 1247.2 1247.0
I b)occupational injuries (1) 49.0 64.0 94.1 72.0
IClassXV-a)financial charges 160.0 177.0 287.4 201.0
I b)shortfall inprovisions for]I477.0 549.0 672.2 749.0
I renewal (J-) i ■
^ .8562.0I9795.4 II11615.6 112312.0I
C-AIDSTOTRANSPORT.
Regulation (EEC)No1107/70
I*Infrastructure costs 2735.0 3344.0 5398.0 5909.0
JFinancial burden I1288.0 1371.0 1574-01 1726.0
ICertaintaxexemptions 'I-15.0 15.0 15.0-14.0
ITransporting passengers bybuseslaidonb)|184.0 273.0 I396.0 409.0
|ECSCtariffs (reminder )therailways I*89.0 512.0 456.0 550.0
Iérantforconstruction I3.6 0.2 4.0
JBalancingsubsidies I-1038.4|•I
Ι η ι4714.0I5515.218881.48608.0I
?TOTAL 20270.0 24198.6 33349.035480.0
|(1)mustbeoutundeVClassI I
(i)mustbeputunderClassVII

-3-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHEDANSKESTATSBANER (DSB)
(Source :communication fromtheDanishgovernment )
(inmillionnational currency )
A.MAINTENANCE OF.PUBLICSERVICE OBLIGATIONS
Regulation (EEC)No1191/691973/74.1974/751975/76
-Copenhagen suburbantraffic
-otherpassenger traffic
-carriage ofgoodsandmail86.0
266.0
93.0113.0
371.0
123.0 •134.0
3S2.0
133.0
445.0 .607.0 649.0
B.NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS
Regulation (EEC)No1192/69
i !
-ClassIX-staffsurplustorequirements
-Class X-recognition ofservicestothecountry
-ClassXI-allowances tostaffj15.0
0.6
|6.4"15.0
4.6
6.4Φ
22.0„26.0 30.0*
-v
C.AIDSTOTRANSPORT -
ReguLation (EEC)No1107/70
-aidsforinfrastructure investment
~compensation fordeficits
-subsidytocoverthedeficitofprivateDanish
raiIways
-aidsforthemodernization ofprivateDanish
railways
.1 '120.0
8.0
20.6
8.5127.0
46.0145.0
•
19.8*
11.5*
157.1 173.0 176.3
TOTAL·"!
624.1 806.0 855.3
'v
(*)est-imatefigures
mJ.I

-,I

-4-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHEDEUTSCHE BUNDESBAHN (DB)
(Source :communication "fromtheGermanFederalGovernment )
(inmillionnational currency )
% l'?73 1974I
-
i1975 1976
L_ ■iI
Iestimate |
A.MAINTENANCE OFPUBLICSERVICE OBLIGATIONS
Regulation (EEC)No1191/69
-Compensation forthecontinuation ofshort-distancjU1542.0 2332.02389.0j2358.0
passenger transport operations
0.7I
-Continued operation oflinesforwhichclosure2.9 2.3 3.0
hasbeenproposed
16.0 26.2 19.0 16.C -Compensation forlossofreceipts duetotheSaar
tariffsforthecarriage ofECSCproducts
■!'
100.0 94.G
1558.7 2361.11
2510.3
I
I2471.C
B.NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS
Regulation (EEC)No1192/69'
-ClassI-compensation forchiIdren's'allowances
|paidtoemployees • 107.0 "115.0*
-ClassIII-retirement &otherpensions1850.0 2102.0 2053.0 2278.0}
supplementary retirement pensionforworkers. 233.0 248.Oj
-ClassIV-crossingfacilities 335.0 380.0 425.0 455.fi
-ClassXII-medical treatment 2.5 3.0 4.04.(j
2294.5 2600.0 2715.0 2985.C
C.AIDSTOTRANSPORT
Regulation (EEC)No1107/70
-Contribution totheinvestments costituting an 525.0 624.4 560.0•-
increase incapital
-Contribution toinvestments forshort-distance 251.3 344.4 347.0 *
passenger transport
.-Allowances forthe.maintenance ofliquidity 3150.1 1911.4 1881.0
-Interest andamortization onloanstoincrease 194.4 475.5 512.0
I.theowncapital Il II ■ II
Coveringofdeficit reduction ofowncapital ,4001.0
rStatecompensation-to theDBfortaxesonmineral I195.6,I291.5 284.0 *
oilusedbyrailwayengines - •-
Repayment ofinterest onloanscontracted inthe 837.0 837.0 837.0 *
Ipastfor.financing purposes (allowances as
owners)
Compensation forrefusingrequesttoincrease 78.6
IgeneraltariffleveIsforpassenqer transoortL 5153.4I4564.8I8422.olh
estimate
TOTAL ?_0Q6.6J 13_64Z.3
I Ii":::u 1 i

-5-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHESOCIETE NATIONALS PESCHENINS DEFERFRANCAIS (SNCF)
(Source:communication fromtheFrenchgovernment )
(inmillionnational currency )
1973 1974 1975 1976
?stimate
A.|
,MAINTENANCE OFPUBLICSERVICE OBLIGATIONSA
Regulation (EEC)No1191/69 I\
Compulsory tariffreductions orrefusalto
agreetoincreaseSIîs'■?
(a)Parissuburbs
(b)reductions forpassengersI168.8
! ■351.0 590.0724.0J
.members ofthearmedforces
.prisonners underescort
.spouse&children ofrediredpersons
.local&ParisCitytraffic349.2
3.2
8.5
330.9412.0
3.5
8.9
368.0568.0
3.9
9.9
416.0600.0 |4.6]
10.7 !
515.0 !
.othertariffreductions
M ri n riI474.0 539.3 548.0 660.0I
(c)transport ofgoodsandnewspapers
continued operation ofunprofitable linesinthe
publicinterest31.0 31.3 32.0 33.0
(a)continued operation ofunprofitable local
services ...
(b)continued operation oflinesfornational
defence purposes653.0
3.0842.2
2.91037.0
3.81279.0
4.0
!.2021.62559.1 3208.6 3830.3
Β.•NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS
Regulation (EEC)No1192/69
ClassIII-retirement &otherpensions 2.890.0 3251.7 3820.0 *250.0*]
ClassIV-crossingfacilities 340.0 341.5359.0 !
JL379.5*|
f 3230.0 3593.2 4179.0 4t
629.5*]
C.'I
.AIDSTPTRANSPORT
Regulation (EEC)No1107/70 • i
I 1
Aids"forinfrastructure investment 1358.0 !1499.0 1760.0 1760.0*!
Compensation fordéficits 483.0 -100.0 100.080.6*1
H
Tariffcompensation underArt.9oftheDecision I
of20.5.1975 v \
■; " j
*)actualfigures ~ • \
i296.0 805.0 1040.0 '11405.0*1
(>2137.0 2404.0 29CÛ.0 3245.6*!
I
TOTAL 7388.6 8556.3HO287.6 "11\
705.4
L Lf.======. .t– i =="■=1

-6-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHECORASIOMPAIR EIREANN (CIE)
(Source:communication fromtheIrishgovernment )
(inmillionnational currency )
*1973*1974 1975 1976
estimate
A.MAINTENANCE OFPUBLIC SERVICE OBLIGATIONS
Regulation (EEC)No1191/69
-lossesonrailpassenger services 5.88*-■■
10.41 11.25
5.88 10.41 11.25
B.NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS
Regulation (EEC)No1192/69
-ClassIII-retirement andotherpensions 0.45 0.71 1.70
-ClassI,V-crossingfacilities
-ClassXII-medical treatment
I0.09
0.070.15 0.40
0.61 0.86 2.10
C.AIDSTOTRANSPORT
Regulation (EEC)No1107/70
-50%infrastructure grant
~GrantsinrespectofCIE'sroadpassenger
servicesI0.97
3.58
■1.58
5.981.72
7.35
-Balancing subsidy 2.92 7.59 9.42
'V'
(*)from1.4.1974 to31.12.1974H
7.47 15.15 18.49
TOTAL 13.96I
26.42 31.84

-7-
COMPENSATIONS ,AIDSANOOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHEAZIENDA AUTONOMA DELLEFERROVIE DELLOSTATO(FS)
(Source:communication fromtheItaliangovernment )
(inmillionnational currency )
* 1973 1974 1975 1976
*
A.MAINTENANCE OFPUBLIC SERVICE OBLIGATIONS
Regulation (EEC)No1191/69
-Operation oflineswithlowdensitytraffic
volumes , ,....-Operation ofnon-profitable facilities on
mainlinesandsecondary lines
-Operation ofservices betweentheContinent
andSardinia v­
-Tariffobligations (carriageofmailnot
included )
-CarriageofmaiI
-Roadtransport toreplacerailtransport
-Passengertariffs"for certainsocial
categories
8.NORMALIZATION OF-'THEACCOUNTS OFTHERAILWAY72920.8
375.8
1.652.7
78204.0
13800.0
|214.4
50918.8'♦
191009.3
j»
r-\
65957.1«
230311.6
*
9
81349.8249453.9
f
m
•
143021.2
218'085.5
'Si±256966.4
5523.0
27084.0
12074.0,
2313.3
i
l311661.4
5904.0
56466.0
25234.0
967.8
18624.0
268688.1392475.1
4416.0
35542.0
21433.0
15819.0
167491.2Regulation (EEC);No1192/69
ClassII.-expenditure ofasocialnature
ClassIII-retirement &otherpensions
ClassIV-crossingfacilities
ClassVIII-wardamage
ClassX-recognition ofservices tothecountr
ClassXV-burdensresulting fromlackof
normalization inthepast
C.AIDSTOTRANSPORT
Regulation (EEC)No1107/70
-Covering ofthedeficit :
(a)amortization ofloans
(b)interest ontheseloans
-Exemption fromfueltax(petroland
gasoil)
-Compensation forcostsfollowing thenew
regulation onspeqialfamilyallowances
(law364of31.7.1975 )
-Compensation forcostsarisingoutofthe
reduction ofworkinghours(law77of2.3.19i
-Compensation fordeficits inthe"financial ,
years1963/64
TOTAL6018.0
16160.0
8132.0
3423.0
/
33733.0
692990.5
"685.2
ι>
6072.0
4)
•851.046994.3
•->
719451.3
.704.8
7546.0
897.5375883.9
433321.0'
64.0'
7655.0"
18932.5
21600.0
94o.8'344706.2|
♦
«
700598.7
952T/,18.i728599.6
1032560.3
f487519.3
1175064.6*737131.3*
I
1
(*)estimate figures -

COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHESOCIETE NATIONALE PESCHENINS DEFERLUXEMBOURGEOIS (CFL)
(Source:communication fromthegovernment ofLuxemburg)
(inmillionnational currency )
* •1973
11974
i1975 1976
estimate
...... –
A.MAINTENANCE OFPUBLIC SERVICE 03LIGATI0NS
Regulation (EEC)No1191/69I
i
-Continued operation ofpassenger transport |320.A!I404.1 ;I'891.0 I666.0[
i-. '
I320.4 404.1 891.0'
l..666.0'
' j
i
B.NORMALIZATION OF-THEACCOUNTS OFTHERAILWAYS "
Regulation (EEC)No1192/69i
i!
!!
i
ClassII-expenditure ofasocialnature 28.417-0 I16.4 23.7
ClassIII-retirement andotherpensions 826.0 845.9 1210.0 1255.6
ClassIV-crossingfacilities 17.2 16.2 29.7 27.7
ClassX-recognition ofservices tothecountry 0.2 0.2 0.1'0.2
ClassXV"-burdensresulting fromlackofnormaliz­
ationinthepast10.4 4.8[4.8|4.8
[882.2
i884.1 1261.0 1312.0
C.AIDSTOTRANSPORT
'Regulation (EEC)No1107/70'I
-Stateaidstothecostofremovingormodernizing
levelcrossings !;
"Stateaidforpensions-ALnetwork
-Stateaidforvariousmeasures onsalaries &wage:
-StateaidstoenabletheCFLtofulfillobligatior
notincludedinRegulations (EEC)1191/69and
1192/69
r*1.0
1.3
24.1
s147.31.4
19.5
459.7
II
1.4
14.2
1175.8«
1161.6
173.7 j;+80.6
I
I1191.0 !1161.6
TOTAL 1376.3
l
I!
1768.8
■ 1Jii.■3343.4 3139.6

-9-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHENAAMLOZE VENNOOTSCHAP NEDERLANDSE SPOORWEGEN (NS)
(Source :communication fromtheDutchgovernment )
(inmillionnational currency )
« 1973 1974 1975 1976
A.MAINTENANCE OF-PUBLIC SERVICE OBLIGATIONS
Regulation (EEC)No1191/69
.
-Compensation grantedforthecontinuation of
passenger transport operations326.0 408.06 553.7 620.3
;i .
•. • f•326.0 "408.06 553.7 620.3
B.NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS!
Regulation (EEC)No1192/69
-ClassIII-retirement andotherpensions I127.2 135.3 I168.5 179.2
-ClassIV-crossingfacilities ••-j23.6 -26.330.6I34.4I
150.8 161.6199.1 213.6
C.AIDSTOTRANSPORT .,
Regulation (EEC)No1107/70
-Stateinterest charges 269.0*
-Amortization *'105.0*
Financial assistance tocoveroperating losses
ongoodstraffi.c " 180.0**
-Goodstrafficoperating losses1973-75-Interest
andAmortization 42.1
Assistance toNVTrailstard todevelopmore
economictransport techniques 0.128 0.07
i0.128 596.17
(*)years-1973to1976
(**)estimatefigure'syears1973-1976!
I
i
TOTALt-
476.8 569.66 753.028 1430.07

-10-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHEBRITISH RAILWAYS BOARD(BRB)
(Source :communication fromtheBritishgovernment )
(inmiIlionnational currency )
1973 1974 !1975
I
I1976
A.MAINTENANCE OFPUBLICSERVICE OBLIGATIONS
Regulation (EEC)No1191/69I
«
-Centralgovernment grantforunremunerati verail
passenger services137.1*
-Localpassenger transport authorities payments
towards ,thecostsoflocalrailpassenger
services 14.7
-Compensatory payments forobligations imposedby
thecentralgovernment inrailwaypassenger
transport operations
(a)payments oythecentralgovernment
(b)payments bythelocalauthoritiesmm 295.4*
19.7298.9*
25.1*
151.8I
315.1 324.0
8.NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS
Regulation (EEC)No1192/69
-ClassIV-installations ofcrossings 6.0 ]9.2|9.8»!
6.09729.8I
C.AIDSTOTRANSPORT ''
Regulation (EEC)No1107/70!
!
-Grantstowardsresearch anddevelopment 1.8 1.8 2.3
-Capitalgrantstowardspassenger transport
improvement schemes
-Cashflow shortfall grants23.7
209.011.2 8.8
-Transitional deficitgrant 67.1*33.7*
-Grantstolocaltransports inEngland SWales
(beginning oftheaid1975-76)|
-AidtoNational FreightCorporation 22.0
-Historic pensionfundobligationj
j97.2 108.3**
?34.5177.3 175.1
TOTAL 392.3 501.* 50*1.9
(*)subjecttoaudit .
(**)estimatefigures

STATISTICAL ANDFINANCIAL INFORMATION
ONTHENINERAILWAY UNDERTAKINGS

INFORMATION CONCERNING THESOCIETE NATIONALE DESCHEMINS DEFERDELGES(SNCB)
(Source:AnnualreportsoftheSNCB)
1973 1974 1975
!RaiLnetwork km'f4084[4004 3998
IRoadnetwork km I
IFerry-boats km I
IPersonnel !58718 59411 60414
Trafficcarried <I
INumberofpassengers totalmioI237 237 232
railmio
INumberofpassengers/kmtotalmioI8093j8279 8258
I railmio
i
Tonnesofgoodscarried totalmioI-76 ..82.6 59.2
railmio I I
i.
ITonnes/kmcarried •totalmio J8238 9197 j6804
railmio I1- I
i!"
IncomeinmioFBI j
i !i
Trafficreceipts (1)I
18363 20554 18368
jPassengerreceipts6825 7161 7420
Goodsreceipts 10440:11957 9797
IMiscellaneous trafficreceipts 1098 1436 1151
jOtherincome(2)18 217 144
ITotalincome(1+2) 18381 20771 18512
Expenditure inmioFB
IOperatingexpenses(1) i30271 35535 42806
jofwhichpersonnel costs 23974 27822 33179
JDepreciation (2) 5700 6430 6705
IInterest (3)V1958 2131 2568
jTotalexpenditure (1+2+3) 37929 44096 52079
iStateintervention19454 2327632364
Balanceoftheexercise -94-49-1203
Information -investments
- - ■■–2313 2323 2606

-3-
INFORMATION CONCERNING THEDANSKE STATSBANER (DSB)
(Source:AnnualreportsofthepSB)
1973 1974 1975
Railnetwork*
km 11999j1999 1999
IRoadnetwork km I7566 7134 7430
|Ferry-boats km 208 208 204
IPersonnel 21765 2154321574|
ITrafficcarried
Numberofpassengers
n rtotalmio
railmio143
109133
106124
100
Numberpassengers /km totalmio
railmio3809
33073750
33333639
3299
Toftnesofgoodscarried totalmio
railmio9168
87148297
7883
I7590
7056
Tonnes/kmcarried totalmio
railmio2211 i
I22061979
19741794
1788
IIncomeinmioDKr
Trafficreceipts (1) 1282|1434 1621
jPassengersreceipts571 |
•i661 !745
IGoodsreceipts 452 ;477 517
Receiptsofcarscarriedbyferry j220248j298
Otherincome (2) 163 228 |245
JTotalincome(1+2)1445 1662 I4866
JExpenditure irimioDKr
Operating expenses (1)
ofwhichpersonnel costsI
1748
12862152
15402341
1715
IDepreciation (2) ;100109 120
jInterest(3)I192 207 22'
jTotalexpenditure (1+2+3)2040 2468 2690
lStateintervention 595 806 824
Balance oftheexercise 0 0 0
Information -^investments457 661 718

-4-
INFORMATION CONCERNING THEDEUTSCHE BUNDESBAHN (DlO
(Source:Annual.reportsoftheD3)
' «
1973
; i1974
\*
1975|
i
Railnetwork km 29022|28831|28796
Roadnetwork - km j
Ferry-Boats km i168 168 168
Personnel 429891|429578409433 !
i
Traffic carried |i
|
i
Numberofpassengers
'Itotalmio
railmio1656
10281668
10601612
1017
Numberpassengers /km totalmio
railmio49668
4071850293
j4160746562
j38547
Tonnesofgoodscarried totalmio 368 378j313
railmio j340 351 I287
!
Tonnes/kmcarried totalmio71636 73568 59383
railmio |-68307 70309 56300
ExpenditureinmioDMl
]
ii
Trafficreceipts (1)
I13306 |142.8513151
Passengers receiptsI
4130 4277 4348
GoodsreceiptsI
I7851 !8570 :7295
Otherincome (2)
I
]100 130 229
Totalincome(1+2)|13406 14415 !13380
ExpenditureinmioDMI
Operating expenses (1)
ofwhichpersonnel costs:17084
1442619252
1633419435
16656
Depreciation (2)1742 1840 2108
Interest (3)1495 1667 1950
Pensions (4) 492 516 500
Totalexpenditure (1+2+3+4)20813 23275 23993
Stateintervention4896 6084 6251
Balance oftheexercise -2511-2776-4362
Information :investments 3574 4080 4011

-5-
INFORMATION CONCERNING THESOCIETE NATIONALE DESCHEMINS DEFERFRANCAIS (SNCF)
(Source:AnnualreportsoftheSNCF)
1973 1974 1975
Railnetwork km' 34812 34834 34787
Roadnetwork km. j:
Ferry-boats km I
Personnel I283415286249276819
Trafficcarried I
Numberofpassengers totalmio 620 642 658
railoutofParismio 223 231 240
|Numberpassengers /kmtotalthousand mio 44.7 47.3 50.7
railoutParisthousand mioI37.9 40.2
Tonnesgoods-carried 'totalmio 258 266 219
railmioi
Tonnes/kmcarriedtotalmiothousand I75.5 79.1 66.1
raiImiothousand
IncomeinmioFF
Trafficreceipts (1) 14053 ]16011 16370
Passengers receipts 4880 5479 6259
jGoodsreceipts j8984 10343 9841
Otherincome (2) 2450 3437 3247
Totalincome(1+2) 16503 1944819617
Expenditure 'inmioFF
Operating expenses (1) 16127 19336 21923
ofwhichpersonnel costs: 10881 12751 14SSd
Depreciation (2)1851 1864 2183
JInterest(3) 944 1146 1158
Fiscality (4)2458 2528 2343
jTotalexpenditure (1+2+3+4 )
i21380 2487427607
jStateintervention 4592 5347 6807
balanceoftheexercise-285 79 1183
Information :investments2135 29903639

-6-
INFORMATION CONCERNING THECORASIOMPAIR EIREANN (CIE)
(Source:AnnualreportsoftheCIE)
1973
.1974 1975
Railnetwork km 3078I3078T3078
Roadnetwork km
Ferry-boats' km :
|Personnel20097 19944 18784
Traffic carried
Numberofpassengers
*• *totaL
raiL
roadmio
mio
mio317.3
12.7
304.6287.9
11.4
276.1317.6
13.9
303.7
Numberpassengers /km total
rail
roadmio
mio
mio892.1 694.1 898.8
i
Totalgoodscarried total
rail•
roadmio
mio
mio7.9
3.8
?4.1
I5.4
"2.7
2.76.4
3.3
3.1
tonnes/kmcarried total
rail.
roadmio
mio
mio588.1
559.0
29.1464.8
444.7
20.1575.8
552.4
23.4
Incomeinmio£
ITrafficreceipts(1)iI
49.33 38.71 61.96
Passengers receipts 23.05 25.89 43.51
JGoodsreceipts 15.90 12.49 15.12
|Otherincome(2).3.80 3.86 5.«
ITotalincome(1+2) 53.13 42.57 67.38
|Expenditureinmio£
«
Operating expenses (1)
ofwhichpersonnel costs:I57.30
39.4050.89
33.1985.64
57.53
IDepreciation (2)3.95 3.50 5.55
|Interest(3) 2.82 2.28 3.57
IFinancialand.administrative roadtransport (4)chargesfor 0.68 0.54 0.71
JTotalexpenditure (1+2+3+4) 64.75 57.21 95.47
IStateintervention 10.75 13.95 26.50
IBalanceoftheexercise -0.Î7-0.69"1"59
IInformation :investments I38.00 37.51I29.75|

-7-
INFORMATION CONCERNING THEAZIENDA AUTONOMA DELLEFERROVIE DELLOSTATO(FS)
(Source:AnnualreportsoftheFS)
Railnetwork
Roadnetwork
rRrry-boats
Persenne L
Traffic carried
Numberofpassengers
Numberpassengers /km
Tonnesgoodscarried
Tonnes/kmcarriedkm
km
km
totalrçiorailmio,
totalmio
railmio
totalmio
railmio
totalmio
railmio
Incomeinthousand miriLit
Trafficreceipts (1)
Passengers receipts
Goodsreceipts
Otherincome (2)
Totalincome C1+2)
Expenditure inthousand mioLit
Operating expenses (1)
ofwhichpersonnel costs:
Depreciation (2)
Interest (3)
Totalexpenditure (1+2+3 )
Stateintervention
Balance oftheexercise
.Information :investments1973 1974 1975
16076 16077 16077
2019 2019 2127
237 237 237
213831 216593221311
361 387 370*
36.4 37.9 36.3
54.8 52.8
I43.2
17.6 18.1 14.9
i
!
496 634 646
281 357 395
211 272 246
71 92!113
567 726 759
1229 1650 1681
814 1056 1075
61 105 235
366I404
1512
1656 2159 2428
396 659 856
-693-774-813
224 245 317
Γ»

-s-
INFORMATION CONCERNING THESOCIETENATIONALE DES-CHEMINS DEFERLUXEMBOURGEOIS
(CFL)
(Source :AnnualreportsoftheCFL)
km
■km
kmRailnetwork
Roadnetwork
Ferry-boats
Personne l
Traffic earned
Numberofpassengers
'ι
Numberpassengers /km
Tonnesgoods •carried
Tonnes/kmcarried
IncomeinmioFlux
Trafficreceipts (1)
Passengers receipts
Goodsreceipts
Otherincome (2)
Totalincome (1+2)
Expenditure inmioFlux
Operating expenses (1)
ofwhichpersonnel costs
Depreciation (2)
Interest (3)
Transfer toreserves (4)
Totalexpenditure (1+2+3 +4)
StateIntervention
Balanceoftheexercisetotalmio
railmio
totalmio
railmio
totalmio
railmio
totalmio
railmio1973
271
1781
4476
14.8
10.7
270
217
22.5
786
7841974
271
1781
4371
15.1
10.9
289
231
.23.1
866
8641975
275
1781
4313
14.5
11.1
293
234
16.8
660
658
1627 1846 1537
177 186 191
1450I1660 1346
65 62 53
1692 j1908 1590
2671 3270•3848
2344 2889 3367
200 253 293
150 142 144
76 92 106
3097 3756 4391
1367 1761 2630
-38-87-171
Information :investments92 174 216

-9-
INFORMATION CONCERNING THENAAMLOZE VENNOOTSCHAP NEDERLANDSE SPOORWEGEN (NS)
(Source:AnnualreportsoftheNS)
1973 1974 1975
Railnetwork K.2832j2832 2835
jRoadnetworkkm10330 10330 10589
Ferry-boats km j
Personne l
Trafficcarriedtotal
rail42933
2685343925
2648245333
26933
Numberofpassengers totalmio
railmio181.1 183 176.3
Numberpassengers /km totalmio
railmio11362
8173'11789
858911592
8501
Tonnesgoodscarried totalmio
railmio 23621 22638 17736
Tonnes/kmcarried totalmio
railmio 3463 3370 2721
IncomeinmioFl
I
Trafficreceipts (1)|13621535 1605
JPassengersreceipts 731 808 842
JGood'sreceipts 559 i643 672
JOtherincome(2) 291 307 347
Totalincome (1+2) 1653 1842 1952
Expenditure inmioFl!
-
Operating expenses (1)
ofwhichpersonnel costs:1877
12782214
15062575
1728
Depreciation (2) 232 266 293
Interest (3) 91 106 128
ITotalexpenditure (1+2+3) 2200 2586 2"6
jStateintervention 410 585 762
|Balanceoftheexercise h137 159-282
.Information -investments 295 307 397
t
i
!
i
t i
1 !
.J__ »

-10-
INFORMATION CONCERNING THEBRITISH RAILWAYS BOARDCBRS)
(Source:AnnualreportsoftheBRB)
1973 1974I
1975J
Railnetwork.
km 18227 18167 18117
iRoadnetwork kmi
|Ferry-boats km |!
j
Personnel I190874 194691 ,189931j
l
'Tsafficacarried|
i
I
I I
Numberofpassengers totalmio
railmio745
723750
733747
730
Numberpassengers /km
Tonnesgoodscarriedtotalmiorailmio
totalmio
railmio j29772
200
19730898
180
177I30
j255
177
175
Tonnes/kmcarried totalmio
railmioI
22961 |
i21632!
i20985
Incomeinmio£I
i
I
Trafficreceipts (1) 633 685.6
II
f
»
I
I849.1j
IPassengers receipts
.Goodsreceipts312.5j
287-1]i
I
!
i348
299.7454.6J
356.61
;Otherincome (2) 70.6]86.6 !113.8
Totalincome (1+2) 703.6'i772.2 ;
!962.9
-ExPenditure inmio£i
l
i ii!
!
!
Operating expenses (1)
ofwhichpersonnel costs:i
737.5 :
496.1,I
I
i959
629.41i
297.2j
837-9j
:Depreciation (2)
I54.6i
i
ï53.41
.27.1
j.Interest (3), 57.3 71.9!
|32.5
iTotalexpenditure (1+2+
(3) 849.4!'1084.3 1356.S
t '
!Stateintervention 94.2 154.3l
i399.4 j
j.Balanceoftheexercise
<■>' •i51.6!157.8r5.5
Information :investments
*
i_ . _.101.5 129.0
I
I
jt
I
110.6

ANNEXII
LAWSGOVERNING THENINERAILWAY COMPANIES
OFTHEEUROPEAN ECONOMIC COMMUNITY
Belqium--SNCB
TheSNCBwascreated byalawof23July1926.Ithaslegalpersonality and
isinvested withthetemporary righttoexploittherailways oftheStateof
Belgiumforaperiodof75years.
Itisrunasacommercial companybutgoverned byauniquelegalconstitutiony
theStatehavingthemajority holding.Thelegalformissetoutinthe
lawandthestatutes .TheStateremainstheowneroftherailwaynetwork.
Denmark-DSB
TheStateopefated railways wereeithertakenoverfromtheiroriginal
licence-holders (lawsof14March1867andNo89of2July1880),orconsti­
tutedundernewlaws(No156of27May1908andNo187of29March1918).
UnderLawNo109of1April1969concerning themanagement oftheState
railways,theDanishStateRailways (DSB)together withtheirdependent car,
transshipment andshiplinks,aremanagedbyadirector-general whois
directly responsible totheMinistry ofPublicWorks.
Germany-DB-
Bythelawof2March1951onthelegalposition oftheproperty ofthe
Federal Germanrailways,theproperty oftheReichsbahn wastransferred to
theBundastheprivateproperty oftheFederalRailways witheffect
from24May1949.
Thelegalconstitution oftheDBisgoverned bythelawof13December 1951
ontheFederalRailways .TheDBisaspecificunitofthepatrimony ofthe
Bund.havingnolegalpersonality butendowedwitheconomic andfinancial
independence * '

-2-
France-SNCF
TheSNCFwascreated bytheDecreeof31-August 1937approving theagreement
betweentheMinister forTransport andthefiveprivaterailway companies .
UnderArticle 5oftheDecreeof31August1937,extended to31December 1982,
theSNCFisempowered tooperatethelicences ofthefiveformerprivate
railway companies .Itissubjecttothecommercial codeandthecurrent
company Law(societ£s anonymes),withtheexception ofthewaiversprovided
undertheDecreeof31August1937.
Ireland-CIE
Article 5ofChapterIIoftheTransport Actof1950constituted aBoard
called"CorasIompair Eireann"responsi bleforfulfilling thosefunctions
assigned toitbythisact.TheBoardhaslegalpersonality foranun­
limitedperiod,hasanofficial sealandpowertosueorbesuedinitssaid
nameandtopurchase,take,holdanddisposeoflandandotherproperty .
ThePublicAuthorities Protection Act,1893,shallnotapplytoanyaction,
prosecution orproceeding againsttheBoardorinrespectofanyact,neglect
ordefault by-aservantoragentoftheBoardinhiscapacity asaservant
oftheBoard.
Italy-FS
MostoftheItalianrailwaynetwork,whichoriginally belongedtoprivate
companies hasbeenboughtoutbytheStatesince1905.Itisatpresent
operated byanautonomous administration .ThelegalbasisoftheFSis
LawNo429-1907 .Thislawconferredfairlyextensive autonomy onthead­
ministration oftheFSbutthishassincebeenrestricted byamendments to
thelaw.

Luxembourg -CFL
Before1944theLuxembourg railwaynetwork wasoperated byseveralinde­
pendent companies .
Bythelawof16June1947therailwaylicences werecancelled inthepublic
interest andtherollingstockwasmadeovertotheCFL.
TheCFLwascreatedunderLuxembourg law,givenlegalpersonality andmade
subjecttothelawof16June1947tothecommercial code,tothelegal
provisions governing Luxembourg companies,andthestatutes andcahierdes
charges oftheCFL.
51Xofthecompany'sowncapitalofFlux800millionisownedbytheState
ofLuxembourg ,whilstFranceandBelgiumeachown24.5%.
Netherlands -NS
Thelawof26May1937dissolved thetwoprivaterailwaycompanies ,andtheir
goodsandrightsinrespectofoperating therailways weretransferred to
theNS.TheStateownsallbuttwooftheNSshares.
Thedecreeof16December 1937,issuedundprthelawof26May1937,confers
ontheNSagenerallicencetooperateitsnetwork.
TheStateistheonlypartyrepresented attheannualgeneralmeetingof
shareholders ..TheNSisacompany (societeanonyme )subjecttotheDutch
commercial code.

-4-
UnitedKinqdom
(a)BRB
TheBRBwassetupbytheTransport Actof1972whenthenationalized
transport undertakings werereorganized .TheBRBisapermanent organization
havingLegalpersonality .Itsobligations andresponsibilities areset
outintheTransport Actsof1962and1968andintheRailwayActof1974.
<b)NIR
Railwayoperations inNorthern Irelandaremanaged bytheNIRCompany
Limitedwhich.,isawhollyownedsubsidiary ofNITransport Holding Company
-acompanyhavinglegalpersonality andestablished bytheTransport Act
(NI)of1967.TheHolding Companyiswhollyownedbythegovernment .The
NIRisregistered undertheCompanies Act.Itisresponsible forthe
management of-,therailways andoperates asacommercial organization .
η ^ -
il o i

ANNEXIII
MARKET TRENDS
Table 1:
(a)Gross_domest2c_groduct_at __market _prices (inthousand .ïïiiJblÇQ._u_.c_.)
£DK _DIilI. _L NL UK
1965 16.6 10.1114.3 97.92.758.40.718.7 99.1
1972 31.5 '19.1 235.7176.0 5.0108.4 1.241.8142.4
(b)of_whi,ch_t ransgort _
1965 6.7 9.3 5.74.8 5.73.6 7.8 8.2
1972 7.6 8.7 5.65.0 5.84.5 7.5 8.4
(c)t2glo^ment_as_%_of _totaIemployment
1965 6.5 7.0 5.55.5 5.27.0 6.7 6.5
1972 7.6 6.4 5.75.3 5.5■ 6.5 7.3
C1)EUROSTAT -annualstatistics 1972/73

-2-
TableII:^volution_of_surf ace_transgort_of_goods
C0UNTRY .YEAR "
>MILLION TONNES/KM
Road(-])InlandWaterways ^^RaiIways(2)
BELGIUM 1963 4779 7017
1972 10072 6758 7675
1975- 5124 6151
DENMARK 1963 8200 161V
1972 14200 2001
1975 1939
FRGERMANY 1963 50200 39513 63756
1972 89000 43969 65680
1975 93800 47565 56300
ΙΕΟΛΜΓΕ 1963 37087 11358 66172
IΓΓ\ηπ ν*ι.1972 72800J 14156 69988
1975 90000Α 11905 65589
IRELAND 1963 358
1972 518
1975 55!
ITALY 1963 45170 •297 17002
: 1972 58986 391 17844
1975- ■ 15471
LUXEMBOURG1963•- " - 650
1972 - 781
I1975 362 660
CNETHERLANDS1963 7652 20201 4176
1972 13900 29333 3071
1975[1540029597 2721
UNITED"KINGDOM1963 57000 242 25178(3)
1972 84000 91 21025
1975 86800 74 20986
)'
(1)Sources:UNexceptforFRGermany,Italy,BelgiumandDenmark
• France:International RoadFederation -worldroadstatistics
(published 1963/76)
(2)Source :UN1973(74),1974(75),1075(77)
exceptUK(1975):UKMonthlyDigestofStatistics
(3)Notcomparable withtheprevious years

-3-
TabLeIII:Numberof vehicles _used_forthetransport ofgoodsbyroad
(inthousands )(1)
C0UNTRY 1963 1970.
1974
BELGIUM 216I270230
DENMARK 147 210
RFGERMANY 881 1144 1244
FRANCE 1676 ! 1810 2075
IRELAND 45 •• »
ITALY 577 914 1081
LUXEMBOURG 12 11
NETHERLANDS 277 303
UNITED KINGDOM 1529 1616 1762
-(1)International RoadFederation (figurespublished 1967/73/76)

TableIV:Evolution ofsurface_transgort_of_gassengers
C0UNTRY YEARMILLION PASSENGERS /KM
' ■Road 1RaiIways I
■Public PrivateJ(1)|
i1963|6.946 -I9.789
BELGIUM 1972 6.114 3.531 (2> 8.168
1975 6.865 3.065 (2) 8.258
1963 5.693 27.400 3.421
•DENMARK 1972 :5.100 44.800 3.723
1975
I*'
■i1963 40.847 !348.600 37.333
FRGERMANY i1972 64.400 505.000 ;39.900
jp» n1975
■i68.900 574.000 38.200
FRANCE1963 :19.400" !116.000 44.100
1972 315.000 43.200
Ir» n1975 23.400
.50.800
1963 • I
IRELAND 1972- . .
1975
I
1963 26.031 93.181 29.142
ITALY1972 36.757 299.464 35.394
1975
• I• I36.325
1963. . .
1972. .
.LUXEMBOURG 1975m
1963 7.911
NETHERLANDS1972 5.100 95.00 8.039
1975 5.100 102.000 8.500
1963 66.800 177.800 36.000
UNITED KINGDOP1972 55.000 343.000 34.500
1975|55200 350.000 36.100
(1)Figuresslightlydifferent fromthosesuppliedbytheInternational UnionofRaiIways(UIC)
(2)Coachesonly

-5-
Table V:Numberofprivate cars
4.(thousands )(1)
'
I
;COUNTRY 1963 1970 1974 Index1963=100
BELGIUM 1098 2033 2474 225
0ENi"1AR !< 605 1177 1261 208
RFGERMANY 1751 14376 17356 991
FRANCE 7530 12470 15180i202 !
IRELAND 229 487 *13
ITALY 3913 10200 14295 365
LUXEMBOURG m 92 109-
NETHERLANDS I; 962 2592 3155 328
UNITED KINGDOM 7839 11540 13639 174
TableVI:Motorway_net works(inkilometres )
C0UNTRY !1963 1970 1974,
Index1963=10c|
■
BELGIUM 213 488 1018 478
DENMARK 84. 184 345 411
RFGERMANY : 3077 4460 6200 201
FRANCE 349 1553 2830 811
IRELAND I ■I 1 i
ITALY 1430 3907 5328 373
LUXEMBOURG 7 25
NETHERLANDSI
I500 1420-
■UNITED KINGDOM
4
1 .322 1073 1879 584
(1)International RoadFederation (published 1967/73/76)

-6-
TableVII:TransportJr^giBeJjne (1)
COUNTRY Millions oftonnes/kilometres carried indices of
growth
1963 1972 19751975/1963=100
BELGIUM 1554 1535
DENMARK- - -
RFGERMANY 4921 18509 14471 293"
|FRANCE4082 32470 31095 !
I762
IRELAND -
ITALY j 731 10766 10893 1490
LUXEMBOURG - - - -
NETHERLANDS " 1206 5703" 4450 369
UNITED KINGDOM 891 3032 5322 597
(1)Report C0M(75)491final

ANNEXIV
FINANCIAL TRENDS
TableI:IotaL_exgenditure_by_raUway_mdert akings
(inmillions,national currency )
BRB CFL CIE DB DSB FS(1)NS SNCB SNCF
■!
1973 |849.4 309764.75 208132040 1656 22003792921380
1975 1356.8
i4391l
95.47 239932690 2428 2996I
|>207927607
j. !
index
•l160 142 147 115 132 147 136
I137
!129
indexof
i|
I
consumer
prices166
i132
i163
iI
!120 .
I136 154i
131 138 138
i
averageindexofincreasefortheninenetworks 1973-75r138
averageindexofincreaseinconsumerpricesintheninecountries
– i
(1)inLitthousandmillion

-2-
TableII:Staff_exgenditure_comga red_w2th_02erat2ng_exgend2ture
(inmilLions,national currency )
1975 BRB CFL<2)CIE DBC2)DSBFS(1)!
iNSSNC?2)SNCF
staff
expend.837.9 3367.0 57.53 16656.0 1715.0 1075.0 1728.0 ■33179.0
i
I14832.0
operat­
ingex-
pendit.
i1297.2 3848.0 85.64 19435.0 2341.0 1681.0 2575.042806.021923.0
per­
centage
share "•65 88 67 86 73 64 67 78 68
averagepercentage sharefortheninenetworks =73
Tablein :Revenue_ „
(inmillions,national currency )
BRB CFL CIE DB DSB FS(1)NS SNCB SNCF
1973 703.6 1692 53.08 13406 !1445
|567I­
!1653
t18'38116503
1975 962.9 1590 67.38 13380 1866 759I
195218512
I19617
index .137 „94
η127 100„12?134 118 101 118
index
of
total!
160 142 147.'
115I
i
i
132147 |136 137 129
Iexpend.iJL_1_1_ Ii
averageindexofincrease fortheninenetworks 1973-75 =104
average'indexofincreaseintotalexpenditure bytheninenetworks 1973-75 =138
(1)inLitthousandmillion
(2)thesefiguresincludedirectpensionpayments ,madebythenetworks,subjecttonor
malization underAnnexIIIofRegulation (EEC)No1192/69

-3-
Table .IV:Comgensati^nz_a2ds_and_ot her_fi/janc^al_ass^stancejD^_the_Stc.tes C1)
(inmillions,national currency )
"■"«
BRB j
iCFL I
'CIE(2:DB DSB FS(3)NSn
SNCB |
Ij
SNCF|
»
i
■p.»
1973 j392.3 1369.6
I
I13.1969006.6 624.1 952.0 556.8j i
20270.0 |
iÎ70A5.6
1975 414.0I
2630.2 16.96!
13647.3 855.3 1175.0 836.6I
133349.4!
j JS989.2|
I
index105 192 121 152I
j137I
I
I123 150 165ν.i
î
128
1973-75l
average indexfortheninenetworks 1973-75 =142
Table .V:Ratlo_betweon _seIf-genorated_revenue_and_t he_undertakings_[_totaI
recei_Qt_s_for _1^975
(inmillions,national currency )
•i
BRB CFL CIE(2)DB DSB FS(3)NS SIMCB
I .ir--j
SNCF|
l
A.Stateassist
anca
B.Salf-gens-
ratedreve-
nue4Ï4.0
962.92630.2
1590.016.96
67.38I3647.3
13380.0855.3
1866.01175.0
759.0j836.6
1952.033349.4
18512.0?
8989.2!
19617c0
i
i
C.Totalreceipt 1376.9 4220.2l I
84.34 !
! ■i27027.3
jI
j2721.31934.0 .2788.651861.4 18606.c!
i
I I
0.XB/C 70 38 80i
50 69
I39 70 36 69
!II Ln–«iwmnii–nilI «
i
(1)figuressupplied bytheMemberStates
(2)1974-75 -
(3)inLitthousand million
.1
•\«

-4-
TableVI:Interest_charges
(inmillions,national currency )
BRB(2)|CFLiCIE DB DSB FS(1)NS SNCB SNCF
1973
I57.3 150.0 2.82 1495.0 192.0 366.0 91.0 1958.0944.0
1975 32.5I
I
144.0
i3.57 1950.0 229.0 512.0 128.0 2568.01158.0
index
1973/7557 96 127 130 119140 '141 131 123
average indexfortheninenetworks 1973-1975 =118
(1)
(2).inLitthousand million
BRBhasundergone acapital
Railways'rActreconstruction inaccordance withthe1974

KOMMISSION ENFORDEEUROPAEISKE FAELLESSKA&ER
KOM(77)295endeligudg,
Bruxelles ,den29«juni1977«
MEDDELELSE TILRÅDETFRAKOMMISSIONEN
Foersteto-§,rige beretning vedroerende deoekonomiske og
finansielle forholdforjernbanevirksomheder
(artikel14i"beslutning 75/327/Ej$F)
KOM(77)295endeligudg.