13. 11. 78 Official  Journal  of the European  Communities No C 269/49 
3. In  order  to remedy  the present  situation  with  the 
utmost  expedition,  the Commission  should  implement 
without  delay  the financial  measures  which  are necessary in order  to carry  out the programme.  The  Committee 
deplores  the belated  submission  of the relevant  proposals. 
Done  at Brussels,  31 May  1978. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on the proposal  for a Council  Regulation  amending  Regulation  (EEC)  No 1192/69  on 
common  rules  for the normalization  of the accounts  of railway  undertakings 
The text  referred  to the Committee  has been  published  in Official  Journal  of the European 
Communities  No  C 307  of 21 December  1977,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 16 December  1977,  the Council  referred  the abovementioned  proposal  to the Economic  and 
Social  Committee  in accordance  with  Articles  75 and 94 of the Treaty  establishing  the European 
Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and Social  Committee  prepared  its opinion  on the above  matter  at its 159th 
plenary  session,  held  in Brussels  on 31 May  and  1 June  1978. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and in particular  Articles  75 and 
94 thereof, 
Having  regard  to the request  made  by the Council  of the 
European  Communities  on 20 December  1977  for an 
opinion, 
Having  regard  to Council  Decision  65/271/EEC  of 13 
May  1965  on the harmonization  of certain  provisions 
affecting  competition  in transport  by rail, road  and inland 
waterway  (x), 
Having  regard  to Council  Regulation  (EEC)  No 1192/69 
of 26 June  1969  on common  rules  for the normalization 
of the  accounts  of railway  undertakings,  in particular 
Article  3 (2), Article  4 (4) and Annex  III, Section  B (4) (2), Having  regard  to its opinion  on the Commission  proposal 
on which  the above  Regulation  was  based  (3), 
Having  regard  to its opinion  of 23 May  1973  on the 
proposal  for a Council  Regulation  supplementing  Council 
Regulation  (EEC)  No 1192/69  (4), 
Having  regard  to the decision  which  its chairman,  acting 
under  Article  22 of its Rules  of Procedure,  took  on 
9 January  1978  instructing  the Section  for Transport  and 
Communications  to draft  an opinion  on the matter, 
Having  regard  to the preliminary  work  carried  out by the 
rapporteur,  Mr Hildgen,  and  the  co-rapporteurs,  Mr 
Bernaert  and  Mr Hennig, 
Having  regard  to the opinion  issued  by the Section  for 
Transport  and  Communications  at its 119th  meeting, 
held on 12 May  1978, 
H OJ  No 88,  24. 5. 1965,  p. 1500/65. 
(2) OJ  No L 156,  28. 6. 1969,  p. 8. (3) OJ  No C 118,  11. 11. 1968,  p. 7. 
(4) OJ  No C 86, 16. 10. 1973,  p. 1. 
No C 269/50 Official  Journal  of the European  Communities 13. 11. 78 
Having  regard  to the oral  report  which  the rapporteur,  Mr 
Hildgen  made  to the abovementioned  Section  (Article  29 
of the Rules  of Procedure), 
Having  regard  to the discussions  at its 159th  plenary 
session  held  on 31 May  and  1 June  1978  (meeting  of 
31 May  1978), 
Whereas  one of the objectives  of the common  transport 
policy  is to eliminate  disparities  resulting  from  the 
imposition  of financial  burdens  on, or the grant  of benefits 
to, railway  undertakings  by public  authorities,  which  are 
liable  to distort  the conditions  of competition; 
Whereas  a first  step towards  harmonization  was achieved 
by Regulation  (EEC)  No 1192/69, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote: 
1. General  comments 
The present  proposal  rounds  off and updates  the previous 
arrangements  for the normalization  of the accounts  of 
railway  undertakings. 
The normalization  of railway  accounts  is an important 
component  of the common  transport  policy.  It is designed 
to offset  extraneous  burdens  imposed  on, and  benefits 
granted  to, railways  and  thus  abolish  distortions  of 
competition  on the transport  market.  Also,  the clear 
demarcation  of extraneous  burdens  and  the  relevant 
normalization  of accounts  will  make  for  greater 
transparency  of the actual  operating  and business  results 
of railway  undertakings.  Such  transparency  is essential  to 
ensure  that  the correct  transport  policy  decisions  are 
taken.  Decisions  in this  sphere  affect  the general  public 
and all economic  operators  involved  in the transport 
market.  The  Committee  therefore  endorses 
fundamentally  the Commission  proposal,  which  updates 
and clarifies  previous  arrangements  for normalization 
and simplifies  the calculation  of compensatory  payments. 
The Committee,  would,  however,  make  the following 
comments. 
2. Specific  comments 
2.1. Article  1 
In its opinion  of 23 May  1973  the Committee  endorsed 
the Commission  proposal  that  Regulation  (EEC)  No 
Done  at Brussels,  31 May  1978. 1192/69  be extended  to cover  subsidiary  railway 
undertakings. 
The Committee  deplores  the Council's  failure  to adopt 
this proposal.  The  proposed  limited  extension  to railway 
undertakings  which  are  substantially  involved  in 
international  transport  does  not cater  for the frequently 
difficult  situation  of other  railway  undertakings  which 
have  to bear  the same  burdens  as national  railways.  The 
Committee  also  deplores  the fact  that  the extension  to 
subsidiary  railway  undertakings  is made  subject  to a 
procedure  fixed  by the State. 
2.2. Article  3 
The proposed  amendment  to Article  4 (4) of Regulation 
(EEC)  No 1192/69  seeks  to abolish  two classes  of burden 
that form  the subject  of normalization,  viz. (i) conditions 
imposed  in respect  of the placing  of public  contracts  for 
works  and  supplies  (Class  XIV),  and  (ii) capital  and 
interest  burdens  borne  as a result  of lack  of normalization 
in the past  (Class  XV). 
The Committee  concurs  with  the proposal  and the reasons 
given. 
The Committee  also  endorses  the other  amendments  to 
Article  4 (4) to the effect  that Class  IX-XIII  obligations  are 
to be maintained  only  if this  is agreed  between  the 
Member  States  and  the railway  undertakings  under  the 
procedures  laid  down  in Council  Decision  75/327/EEC. 
This will  certainly  lead  to a better  balance  in burdens. 
The Committee  approves  the  proposal  to make 
normalization  mandatory  instead  of optional  as was 
previously  the case.  The obligations  in question  can have  a 
considerable  impact  on the labour  market  situation  (Class 
IX) and on regional  economic  structures  (Class  XIII).  The 
Member  States  may  be unable  to dispense  with  these 
obligations  for  overriding  economic  and  social 
considerations.  Without  mandatory  compensation  for the 
associated  financial  burdens,  there  would  be a danger 
that the  difficult  situation  of the railways  would  make  it 
impossible  for  them  to  fulfil  these  obligations. 
Furthermore,  mandatory  compensation  for the financial 
burdens  imposed  in such  cases  is a sine  qua non  for the 
achievement  of equal  terms  of competition  between 
carriers. 
2.3. Article  4 
The Committee  endorses  the proposed  simplification  of 
the calculation  methods  in Annex  III and  welcomes  the 
progress  in harmonization  which  a reduction  in the 
number  of calculation  methods  will  entail. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI