Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) 1107/70 of the Council on the granting of aids for transport by rail, road and inland waterway
Date: 1995-07-19
Institutions: European Commission
Subjects: EU aid, inland waterway transport, intra-EU transport, rail transport, road transport

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  19.07.1995 
COM(95)377 final 

95/0204  (SYN) 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

amending  Regulation  (EEC)  1107/70 of the Council  on the granting  of  aids  for 
transport  by rail,  road and inland  waterway 

(presented  by  the Commission) 

PREAMBLE 

GENERAL AIM OF THE PROPOSAL 

1.  The  general  aim  of  the  proposal  is  to  renew  the  mechanism  for  aid  for  combined 
transport  as laid down by Regulation (EEC) n' 1107/70, as last amended by Regulation 
(EEC)  n°3578/92  and  to  improve  certain  procedural  aspects  of  it.  The  inequality  ot 
distribution,  by  mode  and  by  type  of  use,  of  infrastructure  charges  as  well  as  the 
insufficient  allocation  of  social  costs  in  the transport  prices  operates  against  non-road 
modes of transport  and therefore  against combined transport.  Due to the long lead-times 
that are required,  it is necessary and urgent to extend  the existing  mechanism of support 
for  intermodal  services.  It  also  is  advisable  to  take  into  account  the  diversity  of  the 
national  situations  and  therefore  to continue to permit  Member  States,  pursuant  to the 
principle of  subsidiarity,  to select the form  of aid  most suitable and in conformity  with 
their  national  priorities,  for  example  a  choice  between  specialized  infrastructure  or 
equipment  (modification  of  gauge  or  use  of  low  wagons,  upgrading  the  standards  or 
techniques  for  the axle changing,  are  the most  frequent  examples). 

Thus,  the  proposals  include  the  possibility  of  national  aid  for  combined  transport 
infrastructure  (including  intermodal  terminals),  for  transfer  facilities  between  modes 
and  for  specialised  equipment  for  intermodal  transport. 

Regarding aid for running costs, the possibility remains open for transit lines but applies 
only  to  services  through  Switzerland  and  the States  of  former  Yugoslavia. 

2. 

The  proposal  also  intends  to simplify  the procedure  by explicitly  limiting  it,  in all  the 
cases referred  to in Article 3 paragraph  1  letter e) of Regulation  1107/70,  to a posteriori 
control  by the establishment  of a report.  It deletes Article 4 which  is of no  further  use 
following  the  abrogation  of  the Council  Decision  on  the basis  of  Directive  n°91/440 
which  took  effect  on  1 January  1993 and  is referred  to  in  this  article. 

In  order  that  operators  can  make decisions  with  a sufficient  guarantee  of  stability  and 
transparency,  the proposal  envisages  a validity  period  until  31  December  1997. 

SL 

While  most  business  organisations  directly  involved  in  railway  transportation  are  in 
general  agreement  with  this  proposal,  UNICE  have  indicated  that  they  would  prefer 
each  transport  mode  to  support  itself  in  an  open  market  rather  than  to  provide 
subventions.  Road  transport  operators  too  would  lose  out  to  those  profiting  from 
intermodal  transport  operations  which  are receiving  State aids. 

3. 

The actions of the Community  under consideration  in this proposal  can be analysed  in 
terms  of  subsidiarity  by  means of answering  four  fundamental  questions. 

(a)  what  are  the  objectives  of  the  action  under  consideration 

in  relation  to 

Community  obligations ? 

The  Union  has  to  set  up  and  to  guarantee  an  effective  and  suitable  transport 
system  to meet the mobility  needs of its users.  Intermodal  transport  is one of the 
main  parts  of  this  mechanism  in  that  it  allows  the  best  use  of  our  transport 
resources.  However,  the inequality  of the allocation  of costs  between  modes and 
between  categories  of  users  constitutes  a  heavy  handicap  for  its  development, 
which  can  only  be  resolved  in  the  short  term  by  means  of  aid  at  national  and 
Community  level. 

The action envisaged  here aims, therefore,  to permit  Member  States to grant aids 
for  combined  transport,  whilst respecting  the procedures  set  up by the Treaty on 
competition policy, and to cover the various categories of aid necessary  according 
to  the situation  of  each  Member  State ( allowing  some  to choose  infrastructure 
measures  and  others  equipment  to overcome  the same  type of  difficulties). 

(b)  does  this  proposal  fall  within  the exclusive  competence  of  the Community  or  is 

in  the presence  of  a competence  shared  with  the Member  States? 

This proposal  is submitted  on the basis of Article 75 of  the Treaty  and  therefore 
falls  within  the exclusive competence of  the  Community. 

(c)  What  measures  does  the Community  have available ? 

The  Community  can  accept,  on  an  ad  hoc  basis,  national  aids  for  combined 
transport.  However,  having regard  to the extent of the needs and to the desire  for 
the  Community  to  promote  intermodal  transport,  in  particular  with  financial 
support,  it is preferable  to propose a regulation  establishing  the categories  of aid 
which  are  legitimate.  This  has  the  double  advantage  of  communicating  this 
political  support  of  the Community  and  of  simplifying  the  procedures,  both  for 
the Member  States  and  for  the Commission. 

(d) 

is a uniform  regulation  necessary  or  would  a directive  be  sufficient? 

The definition  of the categories of aid exempted  from  the procedure  of Article 93 
can  only  be  undertaken  by  means of  legislation. 

?> 

PRESENTATION  BY  ARTICLE 

Article  one,  first  indent,  renews  until  31  December  1997,  the  mechanism  for  aid  for 
combined  transport,  as created by Regulation  (EEC)  n* 1107/70, last amended  by Regulation 
3578/92,  i.e.  the possibility  of  State aid  for  infrastructure,  for  modal  transfer  facilities,  for 
combined  transport  equipment  and  for  the running  costs  in certain  cases. 

The  second  indent  modifies  the scope of aid  for  running  costs  to restrict  it  only  to  services 
transitting  Switzerland  or  the  States  of  former  Yugoslavia,  as  Austria  is  now  a  Member 
State. 

The  third  indent  deletes  Article  4  of  Regulation  1107/70;  this  article  covered  provisions 
involving Council decision  n*75/327 of 20 May  1975, relating to the improvement of railway 
undertakings  and to the harmonization  of the rules  governing  the financial  relations  between 
these  companies  and  the  State;  this  decision  and  these  measures  were  repealed  by  Council 
Directive  n°91/440  of  29  July  1991  concerning  the  development  of  railways  in  the 
Community. 

The fifth  indent removes  the obligation  in subparagraph  e) to respect  the procedure  referred 
to  in  Article  93,  paragraph  3  of  the  Treaty,  because  subparagraph  e)  covers  aid  already 
permitted and for which, no problem having been observed,  a simplified  procedure  would be 
possible  and  useful. 

The  other  indents  harmonize  the numbering  following  the deletion  of  Article 4. 

COUNCIL REGULATION  (EEC)  N° 

OF 

amending  Regulation  (EEC) N°  1107/70 on the granting  of  aids  for  transport  by  rail, 

road and  inland  waterway 

THE COUNCIL OF THE EUROPEAN  UNION, 

Having regard to the Treaty  establishing  the European  Union,  and in particular  Articles  75 

and 94  thereof, 

Having regard  to the proposal  from the Commission0* , 

In cooperation  with the European  Parliament^ , 

Having regard  to the opinion  of  the Economic  and  Social Committee(3)  , 

whereas Council Regulation  (EEC)  N"  1107/70<4) of 4 June  1970, on the granting of aids for 

transport  by  rail,  road  and  inland  waterway,  as last amended  by  Council  Regulation  (EEC) 
n° 3578/92  of  7  December  1992(5)  ,  provides  the  Member  States  with  the  possibility  to 

develop combined transport by the granting of aid relating to investments in infrastructure  and 

in fixed and mobile equipment necessary  for transhipment or concerning the running costs of 

an  intra-Community  combined  transport  service  transitting  the territory  of  third  countries; 

whereas  the  development  of  combined  transport  reveals  that  the  launching  phase  of  this 

technique  has  not  yet  been  completed  in  all  regions  of  the  Community  and  that  the  aid 

arrangements  have accordingly  to be extended; 

<n 
(2) 

(3) 
(4) 
(5) 

OJ  N*  L  130  of  15.6.1970, p.  1. 
OJ  N*  L 364  of  12.12.1992,  p.  11 

whereas,  consequently,  it  is  appropriate  to  maintain  in  force  until  31  December  1997  the 

current aid arrangements  and that the Council takes a decision,  under the conditions provided 

for  in  the  Treaty,  on  the  arrangements  to  be  applied  thereafter  or,  if  necessary,  on  the 

conditions  under  which  it will cease providing  this aid; 

whereas  the possibility  of granting  aid  for  the running  costs  of combined  transport  services 

has  to be  maintained  for  Switzerland  and  the States of  former  Yugoslavia,  Austria  having 

since adhered  to the European  Union; 

whereas  Council  Decision  n" 75/327  to  which  Article  4  of  Regulation  1107/70  refers  was 
repealed  by  Council  Directive  n"91/440(6)  of  29  July  1991  on  the  development  of  the 

Community's  railways  and  that  it is therfore  advisable,  accordingly,  to delete Article 4; 

whereas  the  categories  of  aid  authorised  concerning  inland  transport  have  already  been 

shown  to operate  satisfactorily  and  that  it  is possible,  consequently,  to simplify  a check of 

these  by  exempting  them  from  the procedure  referred  to in  Article  93,  paragraph  3 of  the 

Treaty; 

whereas  the laying  down  of  rules  relating  to aids allocated  by  Member  States  for  transport 

is a matter  of  exclusive  Community  competence and  must  take the  form  of  a Regulation  ; 

whereas  it is appropriate  to amend  Regulation  (EEC)  N°  1107/70,  accordingly 

HAS ADOPTED  THIS  REGULATION 

(6) 

OJ  N*  L 237  of  24.8.1991,  p.  25 

Article 1 

Regulation  1107/70  is  amended  as  follows: 

In  Article  3,  item  1,  letter  e),  the  date  of  31  December  1995  is  replaced  by  that  of 

31  December  1997. 

In  Article  3,  last  indent:  the words  "by Austria,"  are  deleted. 

Article  4  is  deleted. 

Article  5,  paragraph  1 becomes  Article  4,  paragraph  1. 

Article 5,  paragraph 2,  becomes Article 4, paragraph 2 and is replaced by the  following 

text: 

M2.  Aid  referred  to  in  Article  3,  paragraph  1,  letter  e)  shall  be  exempt  from  the 

procedure  provided  for  in  Article  93  (3)  of  the Treaty;  it  shall  be  communicated 

to  the  Commission  on  an  estimated  basis  at  the  beginning  of  each  year,  and, 

subsequently,  in  the  form  of  a report,  at the end  of  the  financial  year." 

Article  6  becomes  Article  5. 

Article  7  becomes  Article  6. 

Article  8 becomes  Article  7. 

Article  2 

This  Regulation  shall  enter  into  force  the  first  day  following  that  of  its  publication  in  the 

Official  Journal  of  the  European  Communities. 

It  shall  be  applicable  as  from  1 January  1996. 

This  Regulation  shall  be  binding  in its entirety  and directly  applicable  in all  Member  States. 

Done  at 

For  the  Council, 

The  President, 

Y 

ISSN  0254-1475 

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