Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL empowering Austria to amend its existing bilateral road transport agreement with Switzerland with a view to authorising cabotage operations in the course of the provision of international road passenger transport services by coach and bus in the border regions between the two countries
Date: 2025-12-18
Institutions: Directorate-General for Mobility and Transport, European Commission
Subjects: Austria, Switzerland, Tyrol, Vorarlberg, bilateral agreement, bus, carriage of passengers, frontier region, international road transport, revision of an agreement, road cabotage

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   EUROPEAN COMMISSION  Brussels, 18.12.2025  COM(2025) 773 final 2025/0407 (COD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL empowering Austria to amend its existing bilateral road transport agreement with Switzerland with a view to authorising cabotage operations in the course of the provision of international road passenger transport services by coach and bus in the border regions between the two countries   
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

On the subject matter 

The  border  regions  of  Austria  and  Switzerland  are  closely  integrated.  Many  Austrians 
commute to  work in Switzerland  and vice versa  and there is  vibrant cross-border passenger 
traffic by road. A number of bus and coach services are offered which cross the border and 
thus connect the border regions of the two countries. 

The  two-way  carriage  of  passengers  and  goods  by  road  between  Switzerland  and  the  EU  is 
regulated by the Agreement between the European Community and the Swiss Confederation 
on  the  Carriage  of  Goods  and  Passengers  by  Rail  and  Road1  (hereinafter  'Land  Transport 
Agreement').  

According to Article 20(1) of the Land Transport Agreement, "[t]ransport between two points 
situated on the territory of the same Contracting Party by carriers established in the territory 
of the other Contracting Party are not authorised under this Agreement". This means that the 
carriers  operating  the  passenger  services  which  cross  the  border  can  only  carry  passengers 
across the border or within the territory of the Contracting Party they are established in. Bus 
and coach operators established in Switzerland may not carry passengers between two points 
on  the  Austrian  side  of  the  border  and  operators  established  in  the  EU  may  not  carry 
passengers between two points on the Swiss side of the border. 

Article  20(2)  of  the  Land  Transport  Agreement  allows  pre-existing  rights  under  bilateral 
agreements concluded between individual Member States and Switzerland that were in force 
at  the  time  of  conclusion  of  the  Land  Transport  Agreement  to  continue  to  be  exercised, 
provided  there  is  no  discrimination  between  EU  carriers  and  no  distortion  of  competition. 
Cabotage  in  passenger  transport  by  coach  and  bus  may  thus  be  possible  in  relations  with 
Switzerland  in  case  an  agreement  between  a  Member  State  and  Switzerland  in  force  on  21 
June  1999  had  foreseen  this.  In  practice,  none  of  the  relevant  bilateral  agreements  between 
Member States and Switzerland that were in force at that time did foresee cabotage rights for 
passenger transport by coach and bus2. 

By letter dated 17 March 2025, Austria informed the Commission that it would appreciate if 
the  Union  was  to  empower  it  in  line  with  Article  2(1)  TFEU  to  amend  its  bilateral  road 
transport  agreement  with  Switzerland  of  22  October  19583  with  a  view  to  authorising 
cabotage operations during the provision of passenger transport services by coach and bus in 
the border region between the two countries. In the June 2025 meeting of the EU-Switzerland 
Inland  Transport  Committee,  established  by  the  Land  Transport  Agreement,  Switzerland 
informed the Commission that it was also interested in amending this agreement to that effect. 

1 
2 

3 

OJ L 114, 30.4.2002, p. 91-131, ELI: http://data.europa.eu/eli/agree_internation/2002/309(3)/oj. 
While  the  last  sentence  of  Article  20(2)  of  the  Land  Transport  Agreement  indicates  that  the 
corresponding rights are listed in Annex 8 to that Agreement, Annex 8 currently only lists the rights for 
the  carriage  of  passengers  in  triangular  traffic  (pursuant  to  Article  19(2)  of  the  Land  Transport 
Agreement), not any rights for cabotage.  
BGBl. (Austria) Nr. 123/1959, 1959_123_0.pdf 

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Cabotage  in  passenger  transport  by  coach  and  bus  can  improve  the  efficiency  of  transport 
operations  as  it  allows  the  increasing  of  the  load  factor  of  the  vehicle.  The  EU  is  therefore 
generally favourable to  the opening  of the cabotage market,  as it has done  inside the EU in 
line  with  Regulation  (EC)  No  1073/2009  on  common  rules  for  access  to  the  international 
market  for  coach  and  bus  services4  (hereinafter  ‘Regulation  (EC)  No  1073/2009’).  The 
authorisation of cabotage operations in the context of the provision of international passenger 
transport  services  by  coach  and  bus  in  the  border  regions  between  Austria  and  Switzerland 
would allow the carriers involved to become more competitive and efficient. 

It is worth noting that similar authorisations  have been granted in the past to Germany5 and 
Italy6. 

On the EU competence 

Article 3(2) of the Treaty on the Functioning of the European Union (TFEU) establishes that 
“[t]he  Union  shall  also  have  exclusive  competence  for  the  conclusion  of  an  international 
agreement when its conclusion is provided for in a legislative act of the Union or is necessary 
to  enable  the  Union  to  exercise  its  internal  competence,  or  in  so  far  as  its  conclusion  may 
affect common rules or alter their scope”. 

Under  Regulation  (EC)  No  1073/2009,  cabotage  operations  within  the  Union  may  be 
conducted,  under  certain  conditions,  exclusively  by  carriers  holding  a  Community  licence. 
International  commitments  permitting  other  carriers,  in  particular  carriers  from  third 
countries,  to  conduct  such  operations  affect  the  above-mentioned  Regulation,  within  the 
meaning of Article 3(2) TFEU.7 

Furthermore,  such  international  commitments  also  affect  the  Land  Transport  Agreement,  in 
particular its Article 20. They are not authorised by paragraph 1 of that Article, except as set 
out in its paragraph 2.  

Consequently,  commitments  such  as  those  intended  by  Austria  fall  within  the  scope  of  the 
Union’s exclusive competence.  However, in  accordance  with  Article 2(1) TFEU, the Union 
may empower Member States to act in areas where it has exclusive competence. 

The aim of this proposal is to empower Austria to amend its existing bilateral road transport 
agreement with Switzerland with  a view to  authorising cabotage operations in the course of 

4 

5 

6 

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L 

p. 

No 

300, 

(EC) 

561/2006, 

14.11.2009, 

Regulation (EC) No 1073/2009 of the European Parliament and of the Council of 21 October 2009 on 
common  rules  for  access  to  the  international  market  for  coach  and  bus  services,  and  amending 
Regulation 
88, 
OJ 
ELI: http://data.europa.eu/eli/reg/2009/1073/oj). 
Decision (EU) 2020/853 of the European Parliament and of the Council of 18 June 2020 empowering 
Germany to amend its bilateral road transport agreement with Switzerland with a view to authorising 
cabotage operations in the course of the provision of international road passenger transport services by 
coach  and  bus  in  the  border  regions  between  the  two  countries  (OJ  L  198,  22.6.2020,  p.  44, 
ELI: http://data.europa.eu/eli/dec/2020/853/oj). 
Decision (EU) 2020/854 of the European Parliament and of the Council  of 18 June 2020 empowering 
Italy to negotiate and conclude an agreement with Switzerland authorising cabotage operations in the 
course of the provision of international road passenger transport services by coach and bus in the border 
regions 
47, 
ELI: http://data.europa.eu/eli/dec/2020/854/oj). 
For a similar situation, cf. Opinion 2/15 of the Court of Justice of the European Union of 16 May 2017, 
EU:C:2017:376, paragraphs 189 and 190 

22.6.2020, 

countries 

between 

198, 

two 

(OJ 

the 

p. 

L 

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international  road  passenger  transport  services  by  coach  and  bus  in  the  respective  border 
regions of the two countries. 

On the procedure 

Cabotage  operations  within  the  Union  by  third  country  carriers,  not  holding  a  Community 
licence  in  accordance  with  Regulation  (EC)  No  1073/2009,  affect  the  functioning  of  the 
internal  market  for  coach  and  bus  services,  as  established  by  the  Union  legislator  through 
Regulation (EC) No 1073/2009. It is therefore necessary that any empowerment under Article 
2(1)  TFEU  be  granted  by  the  Union  legislator, in  accordance  with  the  legislative  procedure 
referred to in Article 91 TFEU.  

• 

Consistency with existing policy provisions in the policy area 

Currently, the Land Transport Agreement does not authorise any cabotage operations in road 
passenger  transport  by  coach  and  bus.  However,  Article  20(2)  of  the  Land  Transport 
Agreement specifically allows the continued exercise of pre-existing cabotage rights provided 
there is no discrimination between EU carriers and there will be no distortion of competition. 
An  agreement  between  Austria  and  Switzerland  that  would  authorise  cabotage  operations 
during the provision of international passenger transport services by coach and bus would not 
alter  the  rights  of  Switzerland  under  the  Land  Transport  Agreement.  Moreover,  an 
amendment to the pre-existing bilateral agreement limited to cabotage in the respective border 
regions  and,  in  respect  of  non-discrimination  and  undistorted  competition,  subject  to 
conditions identical to those established in Article 20(2) of the Land Transport Agreement, is 
in line with the policy underlying the exception set out in that provision. 

Inside the EU, cabotage in road passenger transport by coach and bus is allowed in line with 
the  provisions  of  Regulation  (EC)  No  1073/2009.  Article  15  of  that  Regulation  authorises 
cabotage operations within the EU: (1) for occasional services, (2) for special regular services 
provided that they are covered by a contract concluded between the organiser and the carrier, 
and (3) for regular services in the course of a regular international service except for transport 
services meeting the needs of an urban centre or conurbation or transport needs between it and 
the surrounding areas. The operation of that Regulation would be affected by the amendment 
to the bilateral road transport agreement as requested by Austria, but the affectation would be 
sufficiently  limited,  in  case  the  authorisation  is  given  subject  to  the  conditions  described 
above. 

• 

Consistency with other Union policies 

An  amendment  to  the  existing  bilateral  road  transport  agreement  between  Austria  and 
Switzerland  with  a  view  to  authorising  cabotage  operations  during  the  provision  of 
international passenger transport services by coach and bus in the respective border regions of 
the two countries would not be inconsistent with any other Union policy. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this proposal is Articles 2(1) TFEU and 91 TFEU.  

• 

Subsidiarity (for non-exclusive competence)  

The proposal falls under the exclusive competence of the Union. 

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• 

Proportionality 

The sole objective of this proposal is to empower Austria, pursuant to Article 2(1) TFEU, to 
amend  its  existing  bilateral  road  transport  agreement  with  Switzerland  with  a  view  to 
authorising  cabotage  operations  during  the  provision  of  international  passenger  transport 
services by coach and bus in the border regions between the two countries. Consequently, the 
proposed Decision of the European Parliament and of the Council does not go beyond what is 
necessary to achieve this objective. 

• 

Choice of the instrument 

Cabotage  operations  within  the  Union  by  third  country  carriers,  not  holding  a  Community 
licence  in  accordance  with  Regulation  (EC)  No  1073/2009,  affect  the  functioning  of  the 
internal  market  for  coach  and  bus  services,  as  established  by  the  Union  legislator  through 
Regulation (EC) No 1073/2009. It is therefore necessary that any empowerment under Article 
2(1)  TFEU  be  granted  by  the  Union  legislator, in  accordance  with  the  legislative  procedure 
referred to in Article 91 TFEU. The proposed act, in its nature an individual empowerment, is 
to be adopted in response to a corresponding request made by Austria. It should therefore take 
the  form  of  a  decision,  addressed  to  Austria.  Consequently,  the  proposed  Decision  of  the 
European  Parliament  and  of  the  Council  represents  an  adequate  instrument  to  empower 
Austria, in accordance with Article 2(1) TFEU, to act in this matter. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

This proposal is based on a request by Austria and concerns only this Member State.  

4. 

BUDGETARY IMPLICATIONS 

This proposal has no impact on the Union budget. 

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2025/0407 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

empowering Austria to amend its existing bilateral road transport agreement with 
Switzerland with a view to authorising cabotage operations in the course of the 
provision of international road passenger transport services by coach and bus in the 
border regions between the two countries 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 2(1) and 91 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee1, 
Having regard to the opinion of the Committee of the Regions2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

In accordance with Article 20(1) of the Agreement between the European Community 
and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and by 
Road3  (hereinafter  ‘the  Land  Transport  Agreement’),  the  transport  of  passengers  by 
coach  and  bus  between  two  points  situated  on  the  territory  of  the  same  Contracting 
Party by carriers established in the territory of the other Contracting Party, known as 
cabotage, is not authorised. 

In accordance with Article 20(2) of the Land Transport Agreement, existing cabotage 
rights under bilateral agreements concluded between Member States and Switzerland 
which were in force when the Land Transport Agreement was concluded, namely on 
21 June 1999, may continue to be exercised, provided that there is no discrimination 
between  carriers  established  in  the  Union  and  no  distortion  of  competition.  The 
bilateral  road  transport  agreement  between  Austria  and  Switzerland  of  22  October 
19584  does  not  authorise  cabotage  operations  during  the  provision  of  passenger 
transport services by coach and bus between the two countries. Therefore, the right to 
conduct such operations is not among the rights covered by Article 20(2) of the Land 
Transport Agreement. 

(3) 

International  commitments  permitting  carriers  established  in  Switzerland  to  conduct 
cabotage  operations  within  the  Union  are  liable  to  affect  Article  20  of  the  Land 

1 
2 
3 
4 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 114, 30.4.2002, p. 91, ELI: http://data.europa.eu/eli/agree_internation/2002/309(3)/oj. 
BGBl. (Austria) Nr. 123/1959 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Transport  Agreement,  to  the  extent  that  this  provision  does  not  authorise  such 
operations. 

Furthermore, under Regulation (EC) No 1073/2009 of the European Parliament and of 
the Council5, cabotage  operations within the Union may be conducted, under certain 
conditions,  exclusively  by  carriers  holding  a  Community  licence.  International 
commitments  permitting  carriers  from  third  countries,  not  holding  such  a  licence,  to 
conduct operations of that kind are liable to affect that Regulation. 

the  Union’s  exclusive  external 
Consequently,  such  commitments  fall  within 
competence.  Member  States  may  negotiate  or  enter  into  such  commitments  only  if 
empowered to do so by the Union in line with Article 2(1) TFEU. 

Cabotage operations carried out within the Union by third country carriers not holding 
a  Community  licence  in  accordance  with  Regulation  (EC)  No  1073/2009  affect  the 
functioning  of  the  internal  market  for  coach  and  bus  services,  as  established  by  that 
Regulation. It is therefore necessary that any empowerment under Article 2(1) TFEU 
be  granted  by  the  Union  legislator,  in  accordance  with  the  legislative  procedure 
referred to in Article 91 TFEU. 

By letter dated 17 March 2025, Austria requested an empowerment from the Union to 
amend  its  road  transport  agreement  with  Switzerland  with  a  view  to  authorising 
cabotage operations during the provision of passenger transport services by coach and 
bus in the respective border regions of the two countries. 

Cabotage operations allow increasing the load factor of the vehicles, which increases 
the  economic  efficiency  of  the  services.  It  is  therefore  appropriate  to  authorise  such 
operations in the course of the provision of international passenger transport services 
by  coach  and  bus  in  the  respective  border  regions  of  Switzerland  and  Austria.  This 
could further strengthen the close integration of these border regions. 

In order to ensure that the cabotage operations concerned do not excessively alter the 
functioning  of  the  internal  market  for  coach  and  bus  services,  as  established  by 
Regulation  (EC)  No  1073/2009,  their  authorisation  should  be  conditional  upon  there 
being  no  discrimination  between  carriers  established  within  the  Union  and  no 
distortion of competition.  

(10)  For  the  same  reason,  cabotage  operations  should  only  be  authorised  in  the  border 
regions  of  Austria  in  the  course  of  the  provision  of  passenger  transport  services  by 
coach  and  bus  between  Austria  and  Switzerland.  To  this  effect,  it  is  necessary  to 
define the border regions of Austria within the meaning of this Decision in a manner 
that  takes  due  account  of  the  functioning  of  Regulation  (EC)  No  1073/2009,  while 
allowing to increase the efficiency of the operations concerned, 

HAVE ADOPTED THIS DECISION: 

Austria  is  hereby  empowered  to  amend  its  existing  bilateral  road  transport  agreement  with 
Switzerland  of  22  October  1958  with  a  view  to  authorising  cabotage  operations  in  the 

Article 1 

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Regulation (EC) No 1073/2009 of the European Parliament and of the Council of 21 October 2009 on 
common  rules  for  access  to  the  international  market  for  coach  and  bus  services,  and  amending 
88, 
(OJ 
Regulation 
ELI: http://data.europa.eu/eli/reg/2009/1073/oj). 

14.11.2009, 

561/2006 

(EC) 

300, 

No 

p. 

L 

6 

  EN 

 
respective  border  regions  of  Austria  and  Switzerland  in  the  course  of  the  provision  of 
passenger transport services by coach and bus between the two countries, provided that there 
is  no  discrimination  between  carriers  established  in  the  Union  and  no  distortion  of 
competition. 

The  administrative  districts  of  Bludenz,  Bregenz,  Dornbirn,  Feldkirch  in  the  region  of 
Vorarlberg  and  the  district  of  Landeck  in  the  region  of  Tyrol  shall  be  considered  as  border 
regions of Austria within the meaning of the first subparagraph. 

Article 2 

Austria  shall  inform  the  Commission  of  the  amendment  to  its  bilateral  road  transport 
agreement  with  Switzerland  of  22  October  1958  pursuant  to  Article  1  of  this  Decision  and 
shall  notify  the  Commission  of  the  text  of  the  amended  agreement.  The  Commission  shall 
inform the Council and the European Parliament thereof. 

This Decision is addressed to the Republic of Austria. 

Done at Brussels, 

Article 3 

For the European Parliament 
The President 

For the Council 
The President 

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