WRITTEN QUESTION P-4011/00

by Georg Jarzembowski (PPE-DE) to the Commission

(13 December 2000)

Subject: Implementation in the rail transport sector of the provisions of Title VI of the EC Treaty

Within the evolving rail transport sector competition is beginning to develop between various companies with regard to not only cross-border but also national, regional and urban services. In a number of Member States this is leading to structural changes affecting what were previously national rail transport companies, involving hiving off for the provision of regional transport services, for example. This is giving rise to suspicions that when operations are being transferred, the valuation of assets, in particular movable goods, is carried out with the deliberate intention of giving subsidiaries of what were previously state-run undertakings unjustified advantages over new competitors.

1. Is the Commission aware of these developments and what measures will it take to put an end to further distortions of competition or inadmissible direct or indirect state aids?

2. In this connection, is the Commission examining the annual accounts of national rail transport companies in order to obviate such dangers?

(a) If so, what have been its provisional or definitive findings?

(b) If not, why not and what other measures will it take to prevent distortions of competition or abuse of a dominant position within the common market or in a substantial part of it?

Answer given by Mrs de Palacio on behalf of the Commission

(19 February 2001)

The Commission is aware of the numerous changes which are taking place in the rail transport sector, as a result of national and European legislation. In particular, the changes introduced in the structure of existing companies and the establishment of new companies can lead to operations which could raise questions about the application of competition rules, including State aid, in particular where the market is increasingly opened up to competition at the European level.

Following notifications from Member States the Commission has already examined certain aids in the rail freight sector and is, for the time being, verifying, for example, certain national financing schemes for combined transport operations.

The Commission does not systematically examine the annual accounts of national rail transport companies and could in any case rely on reports made by the Courts of Auditors supervising these accounts and the use of taxpayers' money. The recently adopted railway package(1) will probably lead to further structural changes, which will be closely monitored by the Commission, especially in order to guarantee a fair and non-discriminatory access to the railway network. The monitoring mechanism of the European railway market, established by the new Directives(3), should help the Commission to obtain on a regular basis the information and to detect anomalies. In addition, the opening of the railway market may also lead to more complaints from the actors.

The Commission also draws attention to its proposals(2) under discussion in the Council and the Parliament on State aids to inland transport and on public service contracts, aimed at creating more transparency in the way the Member States intervene in the railway sector.

(1) Proposals COM(98) 480; OJ C 321, 20.10.1998.

(2) OJ C 365 E, 19.12.2000.

(3) Proposals COM(98) 480; OJ C 321, 20.10.1998.