Opinion of the Commission pursuant to Article 251(2), third subparagraph, point (c) of the EC Treaty, on the amendments made by the European Parliament to the Council Common Position on a proposal for a Regulation of the European Parliament and of the Council on public passenger transport services by rail and by road amending the proposal of the Commission pursuant to Article 250 (2) of the EC Treaty
Date: 2007-07-25
Institutions: European Commission
Subjects: carriage of passengers, provision of services, public service, rail transport, road transport

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.7.2007 
COM(2007) 460 final 

2000/0212 (COD) 

OPINION OF THE COMMISSION 

pursuant to Article 251(2), third subparagraph, point (c) of the EC Treaty, 
on the amendments made by the European Parliament to the Council Common Position 
on a proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on public passenger transport services by rail and by road  

AMENDING THE PROPOSAL OF THE COMMISSION 
pursuant to Article 250 (2) of the EC Treaty  

EN 

   EN 

 
 
 
  
 
 
2000/0212 (COD) 

COMMISSION OPINION 

pursuant to Article 251(2), third subparagraph, point (c) of the EC Treaty, 
on the amendments made by the European Parliament to the Council Common Position 
on a proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on public passenger transport services by rail and by road  

1. 

INTRODUCTION 

Article  251(2),  third  subparagraph,  point  (c)  of  the  EC  Treaty  requires  the  Commission  to 
deliver  an  opinion  on  the  amendments  proposed  by  the  European  Parliament  at  second 
reading.  The  Commission  sets  out  below  its  opinion  on  the  amendments  proposed  by 
Parliament. 

2. 

BACKGROUND 

Date  of  transmission  of  the  revised  proposal  to  the 
European  Parliament  and  the  Council  (COM(2005) 
319 final – 2000/0212(COD)) 

22 July 2005 

Date of the opinion of the Committee of the Regions 

16 February 2006 

Date  of  the  opinion  of  the  European  Economic  and 
Social Committee 

17 May 2006 

Date  of  the  opinion  of  the  European  Parliament  (first 
reading) on the initial proposal COM (2000) 7 

14 November 2001 

Date of adoption of the common position  

11 December 2006 

Date  of  the  opinion  of  the  European  Parliament  at 
second reading: 

10 May 2007 

3. 

AIM OF THE PROPOSAL 

The proposal is designed to replace a Regulation adopted in 1969 that still today constitutes 
the  Community  regulatory  framework  applicable  in  the  public  passenger  transport  sector1. 

1 

Regulation (EEC) No 1191/69 of the Council of 26 June 1969 (OJ L 156, 28.6.1969, p. 1) on action by 
Member  States  concerning  the  obligations  inherent  in  the  concept  of  a  public  service  in  transport  by 
rail,  road  and  inland  waterway.  Regulation  as  last  amended  by  Regulation  (EEC)  No  1893/91  (OJ  L 
169, 29.6.1991, p.1). 

EN 

2 

   EN 

 
 
 
 
 
                                                 
The  economic  environment  of  the  public  passenger  inland  transport  sector  has  changed 
profoundly  since  1969.  This  Regulation  is  now  outdated  and  constitutes  a  source  of  legal 
uncertainty that is already reflected in an increase in disputes.  

Given the unsuitability of the Community legislative framework and with a view to boosting 
the  effectiveness  and  quality  of  services,  the  Commission  presented,  in  September  2000,  a 
proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council2  to  replace  the 
Regulation of 1969. 

Following  the  opinion  of  the  European  Parliament  in  November  2001  (first  reading),  the 
Commission presented an amended proposal in February 2002. However, particularly in light 
of the widely differing experience in the Member States of opening up markets, the Council 
did not have the opportunity to continue its work on this matter.  

In order to solve these difficulties, reconcile the different positions on this issue expressed in 
the European Parliament and the Council, and take into account the judgment of the Court of 
Justice  of  the  European  Communities  in  Altmark3,  the  Commission  adopted  a  revised 
proposal for a Regulation in July 2005, which replaced the amended proposal of 2002.  

The  main  thrust  of  the  proposal  is  to  simplify  the  legislative  approach,  introduce  greater 
flexibility  into  the  organisation  of  public  transport  services  and  take  greater  account  of  the 
principles of subsidiarity and transparency.  

The proposal regulates the ways in which competent authorities may intervene in the inland 
public  passenger  transport  sector.  To  that  end,  it  lays  down  the  methods  for  paying 
compensation for public service obligations and awarding exclusive rights in the sector. The 
proposal generalises the rules for the conclusion of contracts and increased transparency in the 
relations between public authorities and transport operators. At the same time, at the request 
of  the  European  Parliament,  the  proposal  acknowledges  for  the  first  time  the  free  choice  of 
local  authorities  in  the  organisation  of  public  transport.  It  establishes  a  clear  framework  for 
the  possibility  of  competitive  tendering  for  public  service  contracts  and  for  competent 
authorities to run the services themselves or have them run by an internal operator. 

4. 

COMMISSION OPINION ON THE AMENDMENTS ADOPTED BY PARLIAMENT 

The dossier has been the subject of interinstitutional negotiations which will make it possible 
to  conclude  it  at  second  reading.  The  amendments  adopted  by  the  European  Parliament 
technical  clarifications  and  certain  slightly  more  substantial  aspects.  The 
concern 
opportunities  for  subcontracting  are  regulated  and  limited,  to  ensure  that  in  any  event  the 
contractor provides the majority of the transport services. The level of the thresholds for the 
direct  award  of  transport  contracts  to  small  and  medium-sized  enterprises  has  been  raised 
slightly  from  an  annual  value  of  EUR  1.7  million  to  EUR  2  million.  Mechanisms  which 
ensure  that  judicial  remedy  is  possible  have  been  introduced.  Lastly,  the  amendments  also 
reduce the period for entry into force and the transition period for the Regulation from 36 to 
24  months  and  from  12  to  10  years  respectively.  The  Commission  can  accept  all  the 
amendments adopted by the European Parliament at second reading.  

2 
3 

COM(2000) 7 final - 2000/0212 (COD), as amended by COM(2002) 107 final. 
Case C-280/00 Altmark Trans GmbH and Regierungspräsidium Magdeburg v Nahverkehrsgesellschaft 
Altmark GmbH [2003] ECR I-7747. 

EN 

3 

   EN 

 
                                                 
5. 

CONCLUSION 

In accordance with Article 250(2) of the EC Treaty, the Commission is amending its proposal 
as indicated above. 

EN 

4 

   EN