ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)906
Vol.1980/0283

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)906 final
Brussels,20January1981
Proposalfora
COUNCILREGULATION (EEC)
settingthetimelimitandconditionsfortheachievement offinancial
balancebyrailwayundertakings
Proposalfora
COUNCILREGULATION (EEC)
amendingtheDecision73/327/EEContheimprovement ofthesituation
ofrailwayundertakings andtheharmonization ofrulesgoverningfinancial
relationsbetweensuchundertakings andStates
(submittedtotheCouncilbytheCommission)
C0M(80)906final

EXPLANATORY MEMORANDUM
.GENERAL PROVISIONS ",•,
1.UnderArticle 15(1)oftheCouncilDecisionof20May1975onthe
improvement ofthesituation ofrailwayundertakings andtheharmonization
1ofrulesgoverning financial relations between suchundertakings andStates,
"Before1.1.1980,theCommission takingaccountoftheparticular conditions
affecting theroleandimportance oftherailways ineachState,shallsubmit
totheCouncil suchproposals asitdeemsnecessary tofixthetimelimitand
conditions forachieving thefinancial balanceofrailwayundertakings ".
UnderArticle 15(2)oftheDecision,theCommission isrequired tosubmit
proposals bythesamedatetotakeaccount,withintheframework ofthe
Linkswhichexistbetweentransport andothereconomic andsocialsectors,
oftheobligations inherent ,intheconceptofapublicservice."Thetwo
proposals aretobepresented simultaneously .
2.Inthelightoftheeconomic andfinancial situation oftherailways,as
2described inthetwo-year reports,andconsultations withgovernment and
railexperts andrepresentatives ofthetradeunions,theCommission haspro­
posedamulti-stage programme fortheachievement offinancial balance.In
settingthetime-limit ,theCommission hasoptedtogivetheMemberStates
afairlylengthyperiodsothattheirmeasures canachievetheirfull'effect.
TheCommission feelsthatithasthusdisplayed arealistic attitude landalso
shownitsdesiretoreachasolution inthisarea.
3.Inordertocarryoutthisprogramme,anumberofstepswillhavetobe
takeninthe.variousstagesleading uptotheachievement offinancial balance
(a)clarification andharmonization ofthefinancial relations betweenrailways
andStatesinordertopavethewaytowards acommonapproach toachieving
balancebetweentherailways' expenses andreceipts;
1
0JL152of12June1975,p.3
2C0M(77)295final
C0M(79)447 final

(b)preparation,onthisbasis,ofbusinessandfinancialprogrammes which
wouldbemultiannual andfollowcommonguidelines;
(c)submission bytheCommissionofopinionsontheseprogrammestakingintoi
account,amongotherthings,theparticularconditionsofeachrailway;
i ■i
(d)settingofacommontime-limitfortheachievementoffinancialbalance;
afterthisdate,arrangements forcoveringanylosseswouldbesubmitted
totheCommissioninaccordancewiththegeneralrulesonaid.
4.Inordertocarryoutthisprogramme,theCommissionisproposinga
Regulationsettingthetime-limit andtheconditionsforachievingfinancial
balanceinrespectoftherailways.TheRegulationconsistsofanumberof
sectionsdescribingthestepstobetakenduringthevariousstagesleading
uptotheachievementoffinancialbalance,inparticulartheclarification
andharmonization ofthefinancialrelationsbetweenrailwaysandStates
andthesettingofatime-limitfortheachievement offinancialbalance.
Inaddition,inordertocarryoutsomeofthesemeasuresitwillbenecessary
tomakesomechangestotheCouncilDecisionof20May1975;thesechanges
ShouldbeadoptedatthesametimeastheproposalforaRegulation.They
relateinparticular :
*
(a)tothestructureof,andprocedurefor,preparingbusinessandfinancial
programmes,
(b)totheconditionsforthegrantingofdeficitsubsidies,and
(c)tothecontentsofthetwo-yearlyreportonthe-implementation ofthe
Decision.
5.Ingeneral,theCommissiontakestheviewthatitisessentialthat
theMemberStatesandtherailwaysshouldtakeinitiatives concerningthe
businessandinvestmentprogrammesinordertoattaintheobjectivesetby
thisRegulation,particularly inthelightofthepresentsituation.In
•helpingtherailwaystoregaintheirfinancialbalance,thesestepsmight
helptoimprovetheircompetitiveness onthemarket.Ascanbeseenfrom
otherexistingmeasuresandtheCommission'sproposalsandcommunications ,
actionbytheCommunityandtheMemberStatesconcerninginlandtransportis
notconfinedtotherailways.Progressisalsoneededconcerningtheproper
implementation ofthesocialprovisionsinforceandtheinfrastructure policy

-3-
n*PROVISIONS CONCERNING THEPROPOSAL FORAREGULATION SETTING THETIME-LIMIT
ANDCONDITIONS FORTHEACHIEVEMENT OFTHEFINANCIAL BALANCE OFRAILWAY
UNDERTAKINGS
6.Theclarification andharmonization offinancial relations consists of
I
defining financial balance asbalance between expenses andrevenueinthe
profitandlossaccount.Terminology forthisisprovided byCouncilRegulation
(EEC)No2830/77onthemeasures necessary toachievecomparability between.... 1theaccounting systems andannualaccounts ofrailwayundertakings .Italso
entailsenumerating thevarioustypesofexpenses andrevenuetobeincluded
inrespectoffinancial balance.
Thevariousrulesandtechniques appliedinrespectofcapital movements may
-leadtoprofitandlossaccountsituations whicharenotentirely comparable ,
inparticular asregardsdepreciation andfinancial charges.Progress towards
greatercomparability shouldbeachieved viatheAdvisory Committee setupunder
theabovementioned Regulation . „ .■
7.TheRegulation specifies therailways' varioussources .ofincome:these
are,inthefirstplace,trafficrevenue,financial andotherrevenue,exceptional
profits andthecontraofcostsbookedtootheraccounts andsecondly,compen­
sationpaidinaccordance withCouncilRegulation (EEC)No1191/69,onactionby
MemberStatesconcerning theobligations inherent intheconceptofapublic
2service ■andCouncilRegulation No1192/69oncommonrulesforthenormalization
oftheaccountsofrailwayundertakings . 1
8.TheRegulation alsoprovides thatStatesmay,whereappropriate ,grantother
moniestorailways : 1
8.1.WhereaStateobliges arailwaytocharge ageneralleveloftariffs
I l
whichdiffers fromthegeneralpricingpolicymeasures andwouldbe
contrary tothecommercial interests oftheundertaking Article 9(2)
oftheabovementioned CouncilDecision provides fortheharmonization
ofthemethodsofcompensating suchtariffobligations .
TheCommission proposal aimingatthisobjective could
therefore bewithdrawn 4ifthepresentproposalisadopted.
1 ^
0JL334of29December 1977,P.13:0JL156of28June1969,p.8
20JL156of28June1969,pj1I4Doc.R/1174/79(TRANS89)

-L-
8.2.Wherethesituation asregardsthecharging ofinfrastructure costs
resultsinextraexpenses fortherailway compared withthecompeting
modesoftransport .Thiseventuality isatpresentcovered byCouncil
Regulation (EEC)No1107/70onthegrantingpfaidsfortransport by
1rail,roadandinlandwaterway ;thisproposal supplements that
Regulation bystressing thatcomparison withtheothercompeting
modesoftransport isthedecisive factorasregardsthegranting of
aid,andbysettingout,inanAnnex,theguidelines forcalculating .
suchaid.
/
9.Toensurethattotalnormalization ofbothobligatory andoptional State
financial intervention andtodetermine theactualdeficit,theStatewouldnot
beabletointervene financially tocoveradeficituntilithasexhausted all
theotherabovementioned possibilities ,wheresuchsituations arise.
10.Theproposed Regulation provides that,whereappropriate ,andwithout
constituting aprecondition forfinancial intervention tocoveradeficit,the
Statemaygrantaidtofacilitate research intoanddevelopment oftransport
systemsandtechnologies moreeconomicforthecommunity ingeneral.Suchaid
istoberegarded asasourceofincome.
\
11.TheCommission considers thatby31December 1982theMemberStateswill
beabletoimplement thefirstpartofthisRegulation ,thusproducing aclearer'
andmorecomparable situation atCommunity leveU
12.Theproposed Regulation provides thattherailways shouldhaveachieved
financial balance by1January 1990atthe.latest.TheCommission recognizes
thatafterthisdate,States,intheircapacity asownersormajority share­
holders,willretain adegreeoffreedomintheirrailinvestment policy.However,
theCommission considers thatitwillbenecessary tosubmitproposals before
1January 1990layingdownallocation criteria .Ontheotherhand,itwillno
longerbepossible toawarddeficitsubsidies,andStatefinancial intervention
arrangements tocoveranydeficitwilthavetobesubmitted totheCommission
inaccordance withthegeneralrulesoftheTreaty.TheCommission istherefore
proposing thatArticle 4(1)ofRegulation (EEC)No1107/70amendedbyRegulation
(EEC)No1473/752shouldbeamended.
0JL130of15June1970,p.1
20JL152of12June1975,p.1

PROVISIONS RELATING TOTHEPROPOSED AMENDMENT TOTHECOUNCIL DECISION OF
20MAY1975ONTHEIMPROVEMENT OFTHESITUATION OFRAILWAY UNDERTAKINGS AND
THEHARMONIZATION OFRULESGOVERNING FINANCIAL RELATIONS BETWEEN SUCHUNDER­
TAKINGS ANDSTATES (75/327/EEC)
13.Therailways' business andfinancial programmes areregarded inthe
Decisionitselfasessential meansofenabling therailways toplanthe
measures designed toachievefinancial balance.Forthisreason,andin
orderthatthestructure ofandprocedure forpreparing theseprogrammes
canbebettercoordinated atCommunity level/itisproposed ; s
j ■■ _ ' *
(a)thattheprogrammes shouldbemultiannual ,sincethemeasures envisaged •
andtheirimplications fortheachievement offinancial balance can
onlybe^assessedinamultiannual perspective ;
(b)thattheCommission should beenabled tomakeabetterassessment of
the.measures takenbyeachMemberStatetakingaccount-asprovided
forinArticle .15(1)ofthe1975Decision,oftheparticular conditions'
ineachiMemberState.Inaddition,itisproposedthattheCommission
shouldbeinformed oftheseprogrammes beforetheyareadoptedinorder
! ' f
toadvisetheMemberStatesonthemeansofachieving financial balance;
(c)thatacommonoutlineforthestructure oftheseprogrammes ,shouldbe
I \
adoptedbysettingout,inanAnnextotheDecision,theguidelines
fordrawing upbusiness andfinancing programmes .
14.Inviewoftheconnection betweenthebusiness andfinancial programmes
andtheRegulation settingthetime-limit andconditions forachieving finan­
cialbalance,itisproposedthatthetwo-yearly reportontheoperation of
the1975Decision shouldalsocovertheapplication ofthisRegulation .

..PROPOSAL FORACOUNCIL
REGULATION SETTING THETIMELIMITANDCONDITIONS
FORTHEACHIEVEMENT OFFINANCIAL BALANCE BYRAIL­
,WAYUNDERTAKINGS

THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economic Community,
andinparticular Articles' 75and94thereof,
Havingregardto'theProposal fromtheCommission , *
Havingregard"totheOpinionoftheEuropeanParliament/ t<J
HavingregardtotheOpinionoftheEconomic andSocialCommittee,
Whereas,Article 15(1)ofCouncilDecision 75/327/EECof20May1975
ontheimprovement ofthesituation ofrailwayundertakings andtheharmo­
nizationofrulesgoverning financial relations betweensuchundertakings and
1 -States,provides thattheCommission willsubmitproposals designed toset
thetimelimitsandconditions fortheachievement offinancial balance by
railwayundertakings ,whichrepresents aprimaryobjective forthese
undertakings , -•.•
Whe'reasthisconceptmustbeprecisely definedandappliedtoallthe-
activities ofrailwayundertakings ,
•' / !.
Whereas,thisconcept maybedefinedusingtheterminological basisof
CouncilRegulation (EEC)No2830/77of12December 1977onthemeasures
necessary toachieve comparabilitybetweentheaccounting systems and •
2annualaccountsofrailwayundertakings ; •"
Whereastheexpensesofanundertaking mustbedefinedinthiscontext,'
anditsrevenuemustbespecified bygrouping together "traffic andother
* .
revenue andthereceipts fromthevarioustypesofStateintervention under
CouncilRegulation (EEC)No1191/69of26June'1969onactionbyMember
Statesconcerning theobligations inherentintheconceptofapublicservice
intransport byrail,roadandinlandwaterway,aslastamended by'
andCouncilRegulation (EEC)No1192/69of26June1969
ioncommonrulesforthenormalization oftheaccounts ofrailwayundertakings
aslastamended by ;
0JNoL152,12.6.1975,p.3. 40JNoL
20XNoL334,24.12.1977,p.13. -0JNoL156,28.6.1969,p.8.
,30JNoL156,28.6.1969,p.1.• 60JNoL *'''

Whereastheactualdeficitshouldbedetermined andaidtocompensate for
tariffobligations entailing the'application ofageneralleveloftariffs
whichwouldbecontrary tothecommercial interests oftheseundertakings
should,whereappropriate andintheeventofadeficit,precedeState
financial intervention tocoverthedeficit;
''' i " '
Whereasthesameappliestoaidinrespectofextraexpenses inconnection
withinfrastructure costs;whereasthereshouldbeauniform methodforthe
calculation thereof; . ,
Whereasaidforfacilitating research anddevelopment should,whereappropriate ,
beregarded asrevenue;
Whereas,pendingadoption bytheCouncil .oftheproposals tobemadeby
theCommission .before 1January 1990fordetermining thecriteria forintei–
vention underArticle 5(1)ofDecision 75/327/EEC,suchintervention may
continue tobefreelyeffected,;whereas,provision shouldtherefore bemade
foramending CouncilRegulation (EEC)No1107/70of4June1970onthe
- 1granting ofaidsfortransport byrail,roadandinlandwaterway asamended
byRegulation (EEC)No1473/75^;
1 9
Whereasfinancial balance shouldbeachieved by1January 1990atthe
latest,andafterthatdatedeficitsubsidies shouldbeabolished and,
intheeventofadeficit,Statefinancial intervention arrangements to
coverthisdeficit aretobecommunicated totheCommission inaccordance
withArticle 93oftheTreaty, *
.•• .i
'HASADOPTED THISREGULATION '
0JNoL130,15.6.1970 ,p.1.
20JNol152,12.6.1975,p.1.

Article 1
ThisRegulationshallapplytotherailwayundertakingslistedinArticle1
ofDecision75/327/CEE.
κ
Article2
WithinthemeaningofthisRegulation/financialbalanceinrespectofrailway
undertakings shallbeassessedbyreferencetotheirprofitandlossaccounts.
Itshallcorrespondtoasituationinwhich/takingaccountofallitsactivities
theexpensesofarailwayundertaking arecoveredbyitsrevenueeachyear.
.Article3
1.ExpenseswithinthemeaningofArticle2shallcorrespondtotheexpenses
listedinAnnexIIItoCouncilRegulation (EEC)No2830/77/exceptional .losses
andcorporation tax.
2.RevenuewithinthemeaningofArticle2shallconsistof:
(a)~trafficrevenue/financialrevenue/otherrevenueandexceptional
profitsandthecontraofcostsbookedtootheraccountswithinthe
meaningofthesaidAnnexIII;
-compensation pursuanttoCouncilRegulation (EEC)No1191/69;
-compensation pursuanttoCouncilRegulation (EEC)No1192/69.
(b)Whereappropriate/aidtocompensateunderArticle3(2)ofRegulation
(EEC)No1107/70/fortariffobligations imposedonarailwayundertaking
whichdonotarisefromgeneralpricingpolicymeasuresapplyingto
<
alleconomicactivities/andentailtheapplicationofagenerallevel
oftariffswhichwouldbecontrarytoitscommercialinterests.
!
,!
(c)Whereappropriate,theaidprovidedforinArticle3(1)(b)ofRegulation
(EEC)No1107/70.
3.Aidtofacilitateresearchintothedevelopmentoftransportsystemsand
technologies moreeconomicforthecommunityingeneralunderArticle3(1)(c)
ofRegulation (EEC)No1107/70shallalsoberegardedasincomewithinthe
meaningofArticle2,whereappropriate .

-10-
Article U
1.Theintervention mentionedinArticle3(1)(b)shall
becalculated .accordingtothemethodset^outinArticle11(1)of
Regulation (EEC)No1191/69.
2.TheaidmentionedinArticle3(1)(c)shallbe
calculatedaccordingtotheguidelinessetoutintheAnnex.
Article5
Witheffectfrom1January1983,iffinancialbalancewithinthemeaningof
Article2hasnotbeenachievedandsubjecttoArticle6,State
financialintervention tocoverthedeficitshallbeauthorizedonlyif
typesofintervention referredtoinArticle3(2)areinapplicable .
Article6
/
MemberStatesandrailwayundertakings shalltakestepstoensurethat
financialbalanceisachievedby1January1990atthelatest.
Article7
Regulation (EEC)No1107/70isherebyamendedasfollows:
1.Article4(1)isreplacedbythefollowing:
'1.PendingadoptionbytheCouncilofproposalstobemadebytheCommission
before1January1990fordetermining thecriteriaforfinancialintervention
inrespectofrailwayundertakings inthecontextoftheirbusinessplansin
accordancewithArticle5(1)ofDecision75/327/EEC,andwithoutprejudiceto
Regulations (EEC)No1191/69and(EEC)No1192/69,Article3shallnotapply
/ . ■Itosuchintervention .

I -11-
Until1January1990,andwithoutprejudicetoRegulations (EEC)No1191/69
and(EEC)No1192/69,Article3shallnotapplytothedeficitsubsidies
grantedtorailwayundertakings inaccordancewithArticle13oftheabove-
mentionedDecision."
2.Article5(2)isreplacedbythefollowing:'
"2.TheaidreferredtoinArticle4shallbeexemptfromtheprocedure
providedforinArticle93(3)oftheTreatyuntil1January1990.Such
aidshallbecommunicated totheCommissionintheformofestimatesat
thebeginningofeachyearandsubsequently,intheformofareport,after
theendofthefinancialyear."
Article8
I
ThisRegulationshallenterintoforce
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinall
MemberStates. .
DoneatBrussels, FortheCouncil
I

-12-ANNEXI
Guidingprinciples tobecomplied withindetermining
theaidgrantedtorailwayundertakings pursuant to
Article ofCouncilRegulation No1107/70of
4June1970
Theaidtobegrantedtorailwayundertakings iftheycoverallorpartof
theirinfrastructure expenditure whilethecompeting transport undertakings
donotbearsuchexpensed orbearthemonlytoalesserextentwilldepend
onthefollowing twoelements :
•!■. < .■ ..
I ' • •-theproportion ofrevenue fromrailtraffic competing witheachofthe
othertwo ;modesoftransport ;thispropostion willbecalculated fromthe
totalfor1passenger andfreightservices;
-theextenttowhichinfrastructure expenditure attributable tothe.acti-
ι
vitiesof(thesemodesoftransport competing withtherailwaysiscovered.
/
Compensation willbethesumofthefollowing two.elements :
D' P
,fXirW
I and-
R2D'FPN
DFXTT(ÔT-D>
F N
■ , .
... \

-13-
where :
Dp=thetotalinfrastructure expenditure oftherailwayundertaking
D'p=theinfrastructure expenditure actuallybornebytherailway
undertaking
,PR=the'infrastructure expenditure attributable toroadtransport
competing withtherailways ,
D.,=theinfrastructure expenditure attributable toinlandwaterwayN
transport competing withtherailways
F=totalreceipts fromrailtraffic,including compensation for
publicserviceobligations
=receipts fromrailtrafficfacedwithcompetition fromroadtransport
•*2=receiptsfromrailtrafficfacedwithcompetition frominlandwater­
waytransport
P=proceeds fromspecific taxation onroadtransport competing withtheR
raiIways
=proceeds fromspecific taxation oninlandwaterway transport compet­
ingwiththerailways .'
i
Theinfrastructure expenditure tobetakenintoconsideration foreach
modeoftransport isthatrecorded intheuniformaccounting systemfor
expenditure ontransport infrastructure introduced byCouncilRegulation
No1108/70of4June1970,introducing anaccounting systemforexpenditure
oninfrastructure inrespectoftransport byrail,roadandinlandwaterway .
Theseprinciples willbereviewed whencharging fortheuseofinfrastruc­
turesisgradually introduced forthethreemodesoftransport .

-14-
PROPOSAL FORACOUNCIL DECISION
AMENDING DECISION 75/327/EECONTHE
IMPROVEMENT OFTHESITUATION OFRAILWAY UNDERTAKINGS
ANDTHEHARMONIZATION OFRULESGOVERNING FINANCIAL
RELATIONS BETWEEN SUCHUNDERTAKINGS ANDSTATES

THECOUNCIL OFTHE.EUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economic Community,
andinparticular Article 75thereof,
i
i
i
HavingregardtotheProposal fromtheCommission ,
HavingregardtotheOpinionoftheEuropean Parliament ,
I
I . λ ' >
HavingregardtotheOpinionoftheEconomic andSocialCommittee,
I .
v:.i ..... 1Whereas,underArticle 15(1)ofCouncilDecision 75/327/EEC,the
Commission istomakesuchproposals asitdeemsnecessary inthe;
contextoftheachievement ofthefinancial balanceofrailway under­
takings;
Whereasthebusiness andfinancial programmes provided forinthe1975
Decision areamongtheessential meansofachieving suchabalance,and
whereasithastherefore becomenecessary toimprovetheirstructure and
theprocédure fordrawing themup;
«
Whereas,forthepurposeofachieving financial balance,itisnecessary
thattheseprogrammes shouldbemultiannual ,thattheyshouldtakeinto
accounttheprovisions ofCouncilRegulation (EEC)No of ,
settingthetimelimitandtheconditions fortheachievement offinancial
2balance byrailwayundertakings ,andthattheyshouldbedrawnuponthe
basisofcommon'guidelines ;
/ ■/
' i ' '
WhereastheCommission shouldde.liveropinions takingaccountofthe
particular conditions ofeachundertaking beforesuchprogrammes are
implemented ;
Whereasfinancial balanceshouldbeachieved by1January 1990,anddeficit
subsidies cantherefore benomorethantemporary , v
1
2OJNoL152,12.6.1975,p.3
~OJNo D.«
)

-16
HASADOPTED THISDECISION :

-17-
Article 1
Decision 327/75/EECisherebyamended asfollows :
1.ThetextofthefirstindentofArticle 3isreplaced bythe
following :
submititsmultiannual business programmes ,including itsinvestment
andfinancing plans,withintheframework oftheoverallpolicy
guidelines laiddownbytheStateandtakingaccountofnational
transport planning,particularly withregardtoinfrastructure ",
2..ThetextofArticle 4(1)isreplaced bythefollowing :
"1Thebusiness programme submitted byarailwayundertaking in
accordance withArticle 3shallbeadoptedinthecontextofa
procedure determined bytheStateandbasedonconsultation between
theStateandtheundertaking .TheStateshallforwardthisprogramme
totheCommission ,beforeitisadopted,andtheCommission will
advisetheStateofanycommentsitmighthavetakingintoaccount
theparticular conditions ofeachrailwayundertaking ;theopinion
givenbytheCommission shallbetakenintoaccountintheimple­
mentation oftheprogramme .
Thisprogramme mustbedesigned toachieve andsubsequently main­
tainthefinancial balanceoftheundertaking andattainother
technical ,commercial andfinancial management objectives possibly
bymeans ofseveral programmes .Itshalltakeaccountofthe
'guidelines setoutintheAnnex.From1January 1983itmustbe
drawnuponthebasisoftheconditions setputinRegulation
(EEC)No *
Thisprogramme shallalsoprovideforthemeansofattaining the
objectives mentioned inthesecondsubparagraph .
OJNo
i

-18-
TheStateshallkeeptheperformance ofthisprogramme underreview.
Shouldthedevelopment ofeconomic conditions jeopardize implementation
ofthisprogramme orsomeunforeseen eventoccuroragovernment
decision bemadeaffecting abasicelementthereof,theStateandthe
railwayundertaking shall,bythesameprocess,reviewtheirobjectives
andthemeansofattaining them."
3.Thefirstandsecondsubparagraphs ofArticle 13arereplaced bythe
following .:
"Inconjunction withtherailwayundertaking ,andinthecontextofthe
#
procedure -fordrawing upthebusiness programme referred toinArticle
4(1),theStateshalldrawupamultiannual financial programme aimedat'
theachievement offinancial balance bytheundertaking .
Underthisprogramme theMemberStatemayuntil 1January 199Q,andtaking
accountoftheconditions laiddowninRegulation (EEC)No ,
granttherailwayundertaking deficitsubsidies whichmustbedistinct."
4.,Thetextofthefirstsubparagraph o-fArticle 14(1)isreplaced
bythefollowing :
"1.EverytwoyearstheCommission shallsubmittotheCouncil areport
A
ontheimplementation byMemberStatesofthisDecision andof
Regulations (EEC)No1191/69,(EEC).No1192/69,(EEC)No1107/70
and(EEC)No
* (
Article2
ThisDecision shallapplywitheffectfrom1January 1982.
Article 3
ThisDecision isaddressed totheMemberStates.
DoneatBrussels, FortheCouncil

._19_ ANNEXII,
Quidelines fordrawing upthebusiness
andfinancial programmes ofraiIwayundertakings '
■I ■
1.Theprogrammes aretobedrawnupforperiodsof3to5yearsaspartof
anoveralleconomic forecast takingintoaccounttheothermodesofv
transport andinteractions between modes.
2.Theprogrammes shouldindicate themainlinesofactionatrailway mana­
gementlevelforachieving financial balance.
3.Withthisinmind,programmes willcontain :
(a)ananalysis,bysector,Ofexisting andpotential markets;
(b)ananalysis ofthemeansofproduction inquestion (investment ,staff,
organization ).
4.Inaccordance withthesefactors andtheobjective pursued,theprogrammes
aretolaydownthecommercial policytobefollowed andthepricingpolicy,
:bothofwhicharetobedetermined inrelation tomarketconditions .The-
programme shouldmentionthecriteria for,changesinthegenerallevel
-oftariffs. ,_ \ <•
5.AsregardsStateintervention ,theprogrammes aretoindicate :
<a)thesourcesofrevenuewithinthemeaningofArticle 13.Intervention ,
inrespectofpublicserviceobligations (Regulation No1191/69)in
respectofotherRegulations ((EEC)No1107/70and(EEC)No1192/69)
istobesubdivided ,asfaraspossible,byRegulation andbyend-use;
(b)capital movements inthemeaningofArticle 5(1)and(2).Inthis
/
connection ,itshouldbestatedthattheprogrammes willmention,
asfaraspossible,thescopeforexisting andfutureaidsfor:
(i)-therestructuring ofcapital (Article5(1))
(ii)thefinancing ofnewinvestment withinthemeaningofArticle5(1).