Communication from the Commission to the European Parliament and the Council on the operation and prospects of the Community framework for passenger transport by coach and bus: access to international transport and cabotage markets, safety and rights of passengers [SEC(2004) 1020] (Text with EEA relevance)
Date: 2004-07-29
Institutions: European Commission
Subjects: application of EU law, bus, carriage of passengers, freedom to provide services, road cabotage, road transport, transport regulations, transport safety

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.7.2004 
COM(2004) 527 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

on the operation and prospects of the Community framework for passenger transport 
by coach and bus: access to international transport and cabotage markets, safety and 
rights of passengers 

[SEC(2004) 1020] 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

on the operation and prospects of the Community framework for passenger transport 
by coach and bus: access to international transport and cabotage markets, safety and 
rights of passengers 

A.  

INTRODUCTION 

(Text with EEA relevance) 

The  communication  analyses  the  operation  of  Community  regulations  on  access  to 
international and cabotage markets for passenger transport. It meets a requirement laid down 
by Regulation No 684/921, as amended by Regulation No 11/982 on international passenger 
transport and  by  Regulation No 12/983 on  passenger cabotage operations. These require the 
Commission to report on the application of Community rules on access to passenger transport 
markets and on the impact of cabotage transport operations on national transport markets. 

A  working  paper  of  the  Commission's  departments is attached to the communication. Apart 
from  the  elements  of  the  communication  to  the  European  Parliament  and  the  Council,  this 
document  outlines  those  questions  of  interpretation  or  cases  of  application  of  Community 
legislation  which  have  been  submitted  in  recent  years  to  the  Commission  by  the 
Member States,  transport  operators  or  associations  representing  carriers.  It  also  presents 
certain economic aspects of the market for road passenger services. This document from the 
Commission's departments is intended in particular for the economic operators concerned and 
the national authorities. It will help to ensure uniform application of the Community rules on 
market access. 

Although outside the scope of Regulations Nos 684/92 and 12/98, the Commission working 
paper also covers two other important subjects relating to the development of road passenger 
transport:  safety  of  vehicles  and  passenger  rights.  Although  Community  rules  on  market 
access are vital, the development of the road passenger transport sector also depends on the 
level  of  safety  offered  to  customers.  The  document  therefore  highlights  the  technological 
progress  which  has  led  to  safer  vehicles  but  also  shortcomings  in  this  area  which  should 
where necessary be the subject of new initiatives by the Commission. As regards passenger 
rights,  a  guarantee  of  efficient,  high  quality  transport  services  is  essential  to  facilitate  the 
integration and improve the well being of European citizens and help them to make genuine 
use of their rights. A detailed examination of these questions is therefore required. Passenger 
rights will certainly be one of the priorities for Community action over the next few years. 

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OJ L 74, 20.3.1992, p.1. 
OJ L 4, 8.1.1998, p. 1. 
OJ L 4, 8.1.1998, p. 10. 

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B.   REPORT ON THE OPERATION OF THE COMMUNITY FRAMEWORK 

1.    International passenger transport 

The Community licence  

Generally  speaking,  according  to  the  information  at  the  Commission’s  disposal,  Regulation 
No 684/92, as amended by Regulation No 11/98, has not given rise to any major problems of 
application  or  interpretation  for  passenger  transport  operators  and  the  competent  national 
authorities.  The  objective  of  Regulation  No  11/98  was  precisely  to  adapt  and  simplify 
Regulation  No  684/92  which  was  the  first  Community  legislative  initiative  to  open  up  the 
international  passenger  transport  market.  The  experience  of  the  last  few  years  shows  that 
Regulation No 11/98 may be considered to have achieved these objectives.   

More  specifically,  the  Community  licence  has  facilitated  checks  carried  out  outside  the 
Member State of establishment of the carrier and therefore improved the conditions of access 
to  the  international  transport  market.  A  number  of  complaints  concerning  the  imposition  of 
penalties  by  the  national  authorities  when  checking  documents  carried  on  board  the  vehicle 
have  been  received  by  the  Commission.  The  position  adopted  by  the  Commission  in  these 
cases, the substance of which is set out in the attached document, should help to ensure that 
the relevant legislation is applied properly. Given the vital role of this Community licence in 
the operation of the passenger transport market and therefore the importance of proper use  of  
this  document  in  accordance  with  Community  regulations,  the  Commission  invites  all 
interested parties to submit their observations on the following question:  

Question No 1 

Are  the  clarifications  made  by  the  Commission  (in  the  working  paper  of  the  Commission’s 
departments) regarding the interpretation and application of the provisions on the Community 
licence adequate?  Do they  meet the concerns of the authorities issuing Community licences 
and certified true copies, authorised inspecting officers and carriers? 

Authorisation of regular services 

The  authorisation  procedure  laid  down  for  regular  international  services  and  certain  special 
regular services constitutes an important exception to the general principle of opening up the 
transport market. In all passenger or goods transport sectors, whether by road, rail, sea or air, 
the  European  Community  has  endeavoured  to  develop  an  increasingly  liberalised  market, 
while also maintaining high standards of services and safety. Consideration should therefore 
be given to a new step—intermediate or final – towards a more open market for international 
regular services. Three scenarios have to be examined:  

–  1st scenario: Limiting cases where authorisation is refused 

Regulation  No  11/98  had  already  reduced  the  scope  for  refusing  authorisations  for 
international regular services. Now, authorisation has to be granted if none of the reasons 
for  refusing  authorisation  laid  down  in  the  Regulation  can  be  invoked.  A  further  step 
should be taken by reducing to a minimum the  cases of refusal currently provided  for in 
Article 7(4) of Regulation No 684/92. The Commission had already proposed in 19964 the 
abolition of the reason for refusal that a regular bus or coach service would seriously affect 

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COM (96) 190 final. 

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the  viability  of  a  comparable  rail  service.  Although  this  proposal  was  not  retained  when 
Regulation No 11/98 was adopted, removal of this reason for refusal remains fully justified 
from the point of view of the principle of free competition between the various modes of 
transport. It should moreover be noted that, according to the information obtained by the 
Commission, no authorisation has ever been refused for this reason.   

A relaxation of the rules provided for in Article 7(4)(d) and (e) should also be considered 
in  order  to  encourage  the  development  of  new  regular  transport  services  on  certain 
international  routes.  The  present  rules  can  result  in  a  complete  lock-out  from  certain 
markets by preventing the entry of new transport operators.  

–  2nd scenario: Limiting cases of refusal and tacit authorisation  

Article 7(3) lays down that the authorising authority shall take a decision on the application 
within four months of the date of submission of the application by the carrier. In practice, it 
appears  that  this  time  limit  is  often  exceeded,  which  is  not  acceptable  for  the  transport 
undertakings which have submitted the application for authorisation. 

Therefore,  apart  from  limiting  the  number  of  cases  of  refusal  of  an  application  (see  1st 
scenario),  provision  should  also  be  made  for  a  tacit  authorisation  procedure.  Thus,  if  the 
authorising  authority  has  not  taken  a  decision  within  the  time  limit  laid  down  in 
Article 7(c), it would be deemed to have granted the authorisation; the undertaking could 
therefore  start  operating  its  planned  service  on  the  day  after  the  expiry  of  the 
abovementioned time limit. 

–  3rd scenario: Abolition of the authorisation procedure 

In  this  last  scenario,  regular  international  services  would  be  fully  liberalised  on  the  same 
lines  as  occasional  services.  Any  undertaking  established  in  a  European  Community 
country  would  be  free  to  operate  a  new  regular  international  service  whether  or  not  it  is 
already  operated  by  one  or  more  other  transport  undertakings.  The  principle  of  free 
competition would apply.   

This complete liberalisation of regular international services would not however preclude a 
procedure  for  informing  the  national  authorities  in  question,  which  could  then  check 
whether  the  undertaking  planning  a  new  regular  service  complies  with  Community 
regulations on access to the profession of passenger carrier or the rules on road safety. The 
Member State in which the carrier is established would have a vital supervisory role in this 
new  liberalised  market.  Withdrawal  or  non-renewal  of  the  Community  licence  (or  the 
withdrawal  of  certified  true  copies  of  the  Community  licence)  will  have  to  be  used  more 
than  at  present  as  penalties  to  encourage  carriers  to  comply  strictly  with  the  regulations. 
Proper  supervision  of  the  obligations  of  carriers  with  possible  penalties  involving  the 
Community  licence  will  replace  the  current  checks  carried  out  in  the  authorisation 
procedure for regular services.  

Provision  should  moreover  be  made  for  a  control  document  which  would  replace  the 
authorisation  laid  down  by  Regulation  No  684/92.  Finally,  it  will  be  necessary  to  ensure 
that  this  liberalisation  does  not  affect  any  public  services  and  concessions  resulting  from 
cross-border links. 

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The  Commission  invites  all  parties  concerned  –  carriers,  carriers’  associations,  national 
authorities – to submit their comments on the following three scenarios:  

Question No 2 

Is the procedure for applying for and granting authorisations for regular international services 
and certain special services, provided for in Regulation No 684/92, as amended by Regulation 
No  11/98,  justified  and  balanced  from  the  standpoint  of  the  general  objective  of  the 
liberalisation of transport services in the internal market? 

What should be the degree of liberalisation of these services? 

a.   1st scenario: Limit the cases of refusal to grant authorisation provided for in Article 7(4) 
of  Regulation  No  684/92  as  amended  by  Regulation  No  11/98.  Which  cases  of  refusal 
should be amended or even abolished? 

b.  2nd  scenario:  Restrict  cases  of  refusal  to  grant  authorisation  and  provide  for  tacit 
authorisation by the authorising authority in the absence of a decision within the period of 
four months following the date of submission of the application by the carrier. 

c.  3rd  scenario:  Introduce  complete  liberalisation  of  international  regular  services  and 
special  regular  services  still  subject  to  authorisation,  on  the  same  lines  as  occasional 
services.  In  such  a  case,  which  formalities  and  documents  would  have  to  replace  those 
under the current authorisation procedure? 

On the basis of the remarks and suggestions made on this subject, the Commission is planning 
to adopt a proposal – by the end of 2004 or the beginning of 2005 – aimed at changing the 
conditions  for  operating  regular  international  services  laid  down  in  Regulations  No  684/92 
and 11/98. 

2.    Cabotage passenger transport  

Regulation No 12/98 on cabotage passenger transport has not given rise to any problems of 
interpretation  or  application.  More  specifically,  no  infringement  has  been  reported  by  the 
Member  State  concerning  the  essential  feature  of  cabotage,  namely  that  services  can  be 
provided  in  the  host  Member  State  only  on  a  temporary  basis.  The  average  duration  of 
occasional services is very short, between one and five days in the host Member State. The 
number  of  regular  cabotage  passenger  services  is  extremely  low.  As  for  special  regular 
cabotage services, these are practically non-existent. 

In  terms  of  the  impact  of  cabotage  transport  operations  on  national  transport  markets,  the 
analysis shows that:  
–  The  impact  of  cabotage  on  national  markets  of  the  Member  States  is  insignificant  and 
constitutes a residual category. The operators are therefore concentrating their activities on 
their national market. 

–  Cabotage operations are carried out mainly in the adjacent Member States. 
–  One  of  the  main  reasons  why  non-resident  carriers  occupy  such  a  small  share  in  the 
occasional services market in other Member States is that cabotage has to remain a service 
provided on a temporary basis. If a passenger transport undertaking wishes to establish a 
genuine foothold on another market, it must ideally be able to provide continuous services 

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with a degree of permanence. The best way to do this therefore is to establish itself in the 
Member State or to take over a company in that Member State.   

There is no need to consider amending the provisions of Regulation No 12/98. 

3.    Road safety and passenger rights 

In terms of road safety, it must be acknowledged  that Community legislation,  together  with 
technological advances, has resulted in ever safer vehicles. This trend is vital for transport by 
coach  and  bus.  Although  Community  rules  on  access  to  the  market  are  of  fundamental 
importance,  the  development  of  the  road  passenger  transport  sector  also  depends  on  the 
quality  of  the  service  available  to  customers,  with  coach  safety  being  an  increasingly 
important  criterion  in  their  eyes.  To  this  end,  it  will  be  necessary  to  examine  whether  it  is 
expedient and feasible to introduce a system of certification for carriers which, going beyond 
the  minimum  safety  measures  laid  down  by  Community  and  national  legislation,  observe 
particularly high standards in terms of road safety. 

Finally,  the  coach  and  bus  transport  sector  must  guarantee  efficient,  high  quality  services: 
greater  passenger  comfort,  right  to  information  on  fares,  contractual  terms,  treatment  of 
complaints, mechanisms for resolving disputes, vehicles which are better adapted to the needs 
of  persons  with  reduced  mobility,  etc.  Consideration  will  therefore  have  to  be  given  to  all 
questions  associated  with  passenger  rights  in  the  coach  and  bus  transport  sector.  The 
Commission invites all interested parties, particularly carriers and consumer associations, to 
submit any comments or suggestions on this matter. 

********************** 

Interested parties may submit their comments or suggestions on this  report  to  the  following 
address by 15 October 2004:  

Postal address:  

European Commission  

Directorate-General for Energy and Transport 

For the attention of Mrs Isabelle Kardacz 

Fax: 

B-1049 Brussels 

Mrs Isabelle Kardacz 

+ 32 (2) 295.21.65 

E-mail  

isabelle.kardacz@cec.eu.int 

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