CELEX: 
Language: en
Date: 2016-10-05
Title: Position of the Council at first reading with a view to the adoptation of a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 1370/2007 concerning the opening of the market for domestic passenger transport services by rail

Council of the
                 European Union
                                                           Brussels, 5 October 2016
                                                           (OR. en)
                                                           11198/16
       Interinstitutional File:
          2013/0028 (COD)
                                                           TRANS 297
                                                           CODEC 1057
LEGISLATIVE ACTS AND OTHER INSTRUMENTS
Subject:            Position of the Council at first reading with a view to the adoptation of a
                    REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
                    COUNCIL amending Regulation (EC) No 1370/2007 concerning the
                    opening of the market for domestic passenger transport services by rail
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                                              DGE 2                                            EN
 ---pagebreak---                                     REGULATION( EU) 2016/…
                OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
                                                  of …
                             amending Regulation (EC) No 1370/2007
                               concerning the opening of the market
                         for domestic passenger transport services by rail
                                      (Text with EEA relevance)
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 Article 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 Committee 1,
Having regard to the opinion of the Committee of the Regions 2,
Acting in accordance with the ordinary legislative procedure 3,
1
        OJ C …, …, p. ….
2
        OJ C …, …, p. ….
3
        Position of the European Parliament of … ( not yet published in the Official Journal) and
        position of the Council at first reading of … (not yet published in the Official Journal).
        Position of the European Parliament of … (not yet published in the Official Journal).
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                                                  DGE 2                                            EN
 ---pagebreak--- Whereas:
(1)     Rail transport has the potential to grow and increase its modal share and to play a major
        role in a sustainable transport and mobility system, creating new investment opportunities
        and jobs. However, the growth of passenger transport services by rail has not kept pace
        with the evolution of other modes of transport.
(2)     The Union market for international passenger transport services by rail has been open to
        competition since 2010. In addition, some Member States have opened their domestic
        passenger services to competition, by introducing open access rights, or tendering for
        public service contracts, or both. The opening of the market for domestic passenger
        services by rail should have a positive impact on the functioning of the Single European
        Railway area, leading to better services for users.
(3)     In its White Paper on transport of 28 March 2011 the Commission announced its intention
        to complete the internal market for rail services, abolishing technical, administrative and
        legal obstacles which impede entry to the railway market.
(4)     The completion of the Single European Railway Area should further the development of
        rail transport as a credible alternative to other modes of transport, inter alia in terms of
        price and quality.
(5)     A specific objective of this Regulation is to enhance the quality, transparency, efficiency
        and performance of public passenger transport services by rail.
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                                                  DGE 2                                             EN
 ---pagebreak--- (6)     Services at cross-border level provided under public services contracts, including public
        transport services covering local and regional transport needs, should be subject to the
        agreement of the competent authorities of the Member States on whose territory the
        services are provided.
(7)     Competent authorities should define specifications of public service obligations in public
        passenger transport. Such specifications should be consistent with the policy objectives as
        stated in public transport policy documents in the Member States.
(8)     Specifications of public service obligations in public passenger transport should, where
        possible, generate positive network effects, inter alia in terms of improved quality of
        services, social and territorial cohesion or the overall efficiency of the public transport
        system.
(9)     Public service obligations should be in line with public transport policy. However, this
        does not entitle the competent authorities to receive a specific amount of funding.
(10)    When preparing public transport policy documents, relevant stakeholders should be
        consulted in accordance with national law. Those stakeholders might include transport
        operators, infrastructure managers, employee organisations and representatives of users of
        public transport services.
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                                                DGE 2                                               EN
 ---pagebreak--- (11)    For public service contracts that are not awarded on the basis of a competitive tendering
        procedure, the fulfilment of public service obligations by the public service operators
        should be appropriately compensated in order to ensure the long-term financial
        sustainability of public passenger transport services in accordance with the requirements
        laid down in public transport policy. In particular, such compensation should promote the
        maintenance or development of effective management by the public service operator and
        the provision of passenger transport services of a sufficiently high standard.
(12)    Within the framework of establishing the Single European Railway Area, Member States
        should ensure an adequate level of social protection for the staff of public service
        operators.
(13)    With a view to an appropriate integration of social and labour requirements into procedures
        for the award of public service contracts for public passenger transport services public
        service operators should, in the performance of public service contracts, comply with
        obligations in the field of social and labour law that apply in the Member State where the
        public service contract is awarded and that result from laws, regulations and decisions, at
        both national and Union level, as well as from applicable collective agreements, provided
        that such national rules, and their application, comply with Union law.
(14)    Where Member States require staff taken on by the previous operator to be transferred to
        the newly selected public service operator, such staff should be granted the rights to which
        they would have been entitled if there had been a transfer within the meaning of Council
        Directive 2001/23/EC 1. Member States should be free to adopt such provisions.
1
      Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the
      Member States relating to the safeguarding of employees’ rights in the event of transfers of
      undertakings, businesses or parts of undertakings or businesses (OJ L 82, 22.3.2001, p. 16).
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                                                 DGE 2                                           EN
 ---pagebreak--- (15)    Competent authorities should make available to all interested parties relevant information
        for the preparation of offers under competitive tendering procedures, while ensuring the
        legitimate protection of confidential business information.
(16)    The obligation of a competent authority to provide all interested parties with information
        essential for the preparation of an offer under a competitive tendering procedure should not
        extend to the creation of additional information where such information does not exist.
(17)    In order to take into account the diversity in the territorial and political organisation of
        Member States, a public service contract may be awarded by a competent authority that
        consists of a group of public authorities. In such circumstances, there should be clear rules
        setting the respective roles of each of the public authorities in the awarding process of the
        public service contract.
(18)    Considering the diversity of administrative structures in Member States, in the case of
        contracts for the provision of public passenger transport services by rail directly awarded
        by a group of competent local authorities, the determination which local authorities are
        competent regarding ‘urban agglomerations’ and ‘rural areas’ remains at the discretion of
        the Member States.
(19)    Public service contracts for public passenger transport services by rail should be awarded
        on the basis of a competitive tendering procedure, except for those cases set out in this
        Regulation.
(20)    Procedures for competitive tendering of public service contracts should be open to all
        operators, should be fair and should respect the principles of transparency and
        non-discrimination.
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                                                 DGE 2                                              EN
 ---pagebreak--- (21)    In exceptional circumstances, where public service contracts for public passenger transport
        services by rail are awarded on the basis of a competitive tendering procedure, new
        contracts may temporarily be directly awarded in order to ensure that services are delivered
        in the most cost-effective way. Such contracts should not be renewed to cover the same or
        similar public service obligations.
(22)    Where only one operator expresses interest following the publication of the intention to
        organise a competitive tendering procedure, competent authorities may enter into
        negotiations with that operator to award the contract without further publication of an open
        tendering procedure.
(23)    The de minimis thresholds for directly awarded public service contracts should be adapted
        to reflect the higher volumes and unit costs in public passenger transport services by rail
        compared to other modes of transport covered by Regulation (EC) No 1370/2007 of the
        European Parliament and of the Council 1. Higher thresholds should also apply to public
        passenger transport services where rail represents more than 50 % of the value of the
        services in question.
(24)    The establishment of the Single European Railway Area requires common rules on the
        award of public service contracts in this sector, whilst taking into account the specific
        circumstances of each Member State.
1
      Regulation (EC) No 1370/2007 of the European Parliament and of the Council of
      23 October 2007 on public passenger transport services by rail and by road and repealing
      Council Regulations (EEC) Nos 1191/69 and 1107/70 (OJ L 315, 3.12.2007, p. 1).
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                                               DGE 2                                              EN
 ---pagebreak--- (25)    Where certain conditions related to the nature and structure of the railway market or the
        railway network are fulfilled, competent authorities should be entitled to award public
        service contracts for public passenger transport services by rail directly where such a
        contract would result in an improvement in the quality of services or cost-efficiency, or
        both.
(26)    Competent authorities may take measures to increase competition between railway
        undertakings by limiting the number of contracts that they award to one railway
        undertaking.
(27)    Member States should ensure that their legal systems provide for the possibility to assess
        decisions of the competent authority to award public service contracts for public passenger
        transport services by rail directly on a performance-based approach by an independent
        body. This might be done as part of a judicial review.
(28)    When preparing competitive tendering procedures, competent authorities should assess
        whether measures are necessary to ensure effective and non-discriminatory access to
        suitable rail rolling stock. Competent authorities should make the assessment report
        publicly available.
(29)    Certain key features of upcoming competitive tendering procedure for public service
        contracts need to be fully transparent to enable a better organised market response.
(30)    Regulation (EC) No 1370/2007 should therefore be amended accordingly,
HAVE ADOPTED THIS REGULATION:
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                                                 DGE 2                                          EN
 ---pagebreak---                                                Article 1
Regulation (EC) No 1370/2007 is amended as follows:
(1)     In Article 1(2), the following subparagraph is added:
        ‘Subject to agreement of the competent authorities of the Member States on whose
        territory the services are provided, public service obligations may concern public transport
        services at cross-border level, including those covering local and regional transport needs.’.
(2)     In Article 2 the following point is inserted:
        ‘(aa) “public passenger transport services by rail” means public passenger transport by
               rail, excluding passenger transport by other track-based modes, such as metros or
               tramways;’.
(3)     The following Article is inserted:
        ‘Article 2a
        Specification of public service obligations
        1.     The competent authority shall lay down specifications for public service obligations
               in the provision of public passenger transport services and the scope of their
               application in accordance with Article 2(e). This includes the possibility to group
               cost-covering services with non-cost-covering services.
               When laying down those specifications and the scope of their application, the
               competent authority shall duly respect the principle of proportionality, in accordance
               with Union law.
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                                                DGE 2                                            EN
 ---pagebreak---               The specifications shall be consistent with the policy objectives stated in public
              transport policy documents in the Member States.
              The content and format of public transport policy documents and the procedures for
              consulting relevant stakeholders shall be determined in accordance with national law.
        2.    The specifications of the public service obligations and the related compensation of
              the net financial effect of public service obligations shall:
              (a)    achieve the objectives of the public transport policy in a cost-effective manner;
                     and
              (b)    financially sustain the provision of public passenger transport, in accordance
                     with the requirements laid down in the public transport policy in the long
                     term.’.
(4)     Article 4 is amended as follows:
        (a)   in paragraph 1, points (a) and (b) are replaced by the following:
              ‘(a) clearly set out the public service obligations, defined in this Regulation and
                     specified in accordance with Article 2a thereof, with which the public service
                     operator is to comply, and the geographical areas concerned;
              (b)    establish in advance, in an objective and transparent manner,
                     (i)   he parameters on the basis of which the compensation payment, if any, is
                           to be calculated, and
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                                                 DGE 2                                           EN
 ---pagebreak---                   (ii)  the nature and extent of any exclusive rights granted, in a way that
                        prevents overcompensation. In the case of public service contracts not
                        awarded according to Article 5(1), (3) or (3b), these parameters shall be
                        determined in such a way that no compensation payment may exceed the
                        amount required to cover the net financial effect on costs incurred and
                        revenues generated in discharging the public service obligations, taking
                        account of revenue relating thereto kept by the public service operator
                        and a reasonable profit;’;
        (b) the following paragraphs are inserted:
            ‘4a. In the performance of public service contracts, public service operators shall
                  comply with obligations applicable in the field of social and labour law
                  established by Union law, national law or collective agreements.
            4b.   Council Directive 2001/23/EC* shall apply to a change of public service
                  operator where such a change constitutes a transfer of undertaking within the
                  meaning of that Directive.
            ______________
            *     Council Directive 2001/23/EC of 12 March 2001 on the approximation of the
                  laws of the Member States relating to the safeguarding of employees’ rights in
                  the event of transfers of undertakings, businesses or parts of undertakings or
                  businesses (OJ L 82, 22.3.2001, p. 16).’;
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                                              DGE 2                                           EN
 ---pagebreak---         (c) paragraph 6 is replaced by the following:
            ‘6.  Where competent authorities, in accordance with national law, require public
                 service operators to comply with certain quality and social standards, or
                 establish social and qualitative criteria, those standards and criteria shall be
                 included in the tender documents and in the public service contracts. While
                 respecting Directive 2001/23/EC, such tender documents and public service
                 contracts shall, where applicable, also contain information on the rights and
                 obligations relating to the transfer of staff taken on by the previous operator.’;
        (d) The following paragraph is added:
            ‘8.  Public service contracts shall require the operator to provide the competent
                 authority with the information essential for the award of public service
                 contracts, while ensuring the legitimate protection of confidential business
                 information. Competent authorities shall make available to all interested parties
                 relevant information for the preparation of an offer under a competitive
                 tendering procedure, while ensuring the legitimate protection of confidential
                 business information. This shall include information on passenger demand,
                 fares, costs and revenues related to the public passenger transport covered by
                 the competitive tendering procedure and details of the infrastructure
                 specifications relevant for the operation of the required vehicles or rolling
                 stock to enable interested parties to draft well informed business plans. Rail
                 infrastructure managers shall support competent authorities in providing all
                 relevant infrastructure specifications. Non-compliance with the provisions set
                 out above shall be subject to the legal review provided for in Article 5(7).’.
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                                             DGE 2                                              EN
 ---pagebreak--- (5)     Article 5 is amended as follows:
        (a)   in paragraph 2, the introductory wording is replaced by the following:
              ‘Unless prohibited by national law, any competent local authority, whether or not it
              is an individual authority or a group of authorities providing integrated public
              passenger transport services may decide to provide public passenger transport
              services itself or to award public service contracts directly to a legally distinct entity
              over which the competent local authority, or, in the case of a group of authorities at
              least one competent local authority, exercises control similar to that exercised over
              its own departments.
              In the case of public passenger transport services by rail, the group of authorities
              referred to in the first subparagraph may be composed only of local competent
              authorities whose geographical area of competence is not national. The public
              passenger transport service or the public service contract referred to in the first
              subparagraph may only cover the transport needs of urban agglomerations or rural
              areas, or both.
              Where a competent local authority takes such a decision, the following shall apply:’;
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                                                DGE 2                                               EN
 ---pagebreak---         (b) paragraph 3 is replaced by the following:
            ‘3.  Any competent authority which has recourse to a third party other than an
                 internal operator, shall award public service contracts on the basis of a
                 competitive tendering procedure, except in the cases specified in
                 paragraphs 3a, 4, 4a, 4b, 5 and 6. The procedure adopted for competitive
                 tendering shall be open to all operators, shall be fair and shall observe the
                 principles of transparency and non-discrimination. Following the submission of
                 tenders and any preselection, the procedure may involve negotiations in
                 accordance with these principles in order to determine how best to meet
                 specific or complex requirements.’;
        (c) The following paragraphs are inserted:
            ‘3a. Unless prohibited by national law, as regards public service contracts for public
                 passenger transport services by rail awarded on the basis of a competitive
                 tendering procedure, the competent authority may decide to temporarily award
                 new contracts directly where the competent authority considers that the direct
                 award is justified by exceptional circumstances. Such exceptional
                 circumstances shall include situations where:
                 –     there are a number of competitive tendering procedures that are already
                       being run by the competent authority or other competent authorities
                       which could affect the number and quality of bids likely to be received if
                       the contract is the subject of a competitive tendering procedure, or
                 –     changes to the scope of one or more public service contracts are required
                       in order to optimise the provision of public services.
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                                             DGE 2                                             EN
 ---pagebreak---              The competent authority shall issue a substantiated decision and shall inform
             the Commission thereof without undue delay.
             The duration of contracts awarded pursuant to this paragraph shall be
             proportionate to the exceptional circumstance concerned and in any case shall
             not exceed 5 years.
             The competent authority shall publish such contracts. In doing so, it shall take
             into consideration the legitimate protection of confidential business
             information and commercial interests.
             The subsequent contract that concerns the same public service obligations shall
             not be awarded on the basis of this provision.
         3b. In application of paragraph 3, competent authorities may decide to apply the
             following procedure:
             Competent authorities may make public their intentions to award a public
             service contract for public passenger transport services by rail by publishing an
             information notice in the Official Journal of the European Union.
             That information notice shall contain a detailed description of the services that
             are the subject of the contract to be awarded, as well as the type and the
             duration of the contract.
             Operators may express their interest within a period fixed by the competent
             authority which shall not be less than 60 days following the publication of the
             information notice.
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                                         DGE 2                                            EN
 ---pagebreak---                  If after the expiration of that period:
                 (a)    only one operator has expressed its interest in participating in the
                        procedure to award the public service contract;
                 (b)    that operator has duly proved that it will in fact be able to provide the
                        transport service complying with the obligations established in the public
                        service contract;
                 (c)    the absence of competition is not the result of an artificial narrowing of
                        the parameters of the procurement; and
                 (d)    no reasonable alternative exists,
                 the competent authorities may start negotiations with this operator in order to
                 award the contract without further publication of an open tendering
                 procedure.’;
        (d) Paragraph 4 is replaced by the following:
            ‘4.  Unless prohibited by national law, the competent authority may decide to
                 award public service contracts directly:
                 (a)    where their average annual value is estimated at less than EUR 1 000 000
                        or, in the case of a public service contract including public passenger
                        transport services by rail, less than EUR 7 500 000; or
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                                              DGE 2                                             EN
 ---pagebreak---                  (b)   where they concern the annual provision of less than 300 000 kilometres
                       of public passenger transport services or, in the case of a public service
                       contract including public passenger transport services by rail, less
                       than 500 000 kilometres.
                 In the case of a public service contract directly awarded to a small or
                 medium-sized enterprise operating not more than 23 road vehicles, those
                 thresholds may be increased to either an average annual value estimated at less
                 than EUR 2 000 000 or to an annual provision of less than 600 000 kilometres
                 of public passenger transport services.’;
        (e) The following paragraphs are inserted:
            ‘4a. Unless prohibited by national law, the competent authority may decide to
                 award public service contracts for public passenger transport services by rail
                 directly:
                 (a)   where it considers that the direct award is justified by the relevant
                       structural and geographical characteristics of the market and network
                       concerned, and in particular size, demand characteristics, network
                       complexity, technical and geographical isolation and the services covered
                       by the contract, and
                 (b)   where such a contract would result in an improvement in quality of
                       services or cost-efficiency, or both, compared to the previously awarded
                       public service contract.
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                                             DGE 2                                             EN
 ---pagebreak---          On that basis, the competent authority shall publish a substantiated
         decision and shall inform the Commission thereof within one month of
         its publication. The competent authority may proceed with the award of
         the contract.
         Member States for which, on... [the date of entry into force of this
         amending Regulation st11198], the maximum annual volume is less
         than 23 million train-km and which have only one competent authority at
         national level and one public service contract covering the entire network
         shall be deemed to fulfil the condition set out in point (a). Where a
         competent authority of one of those Member States decides to award a
         public service contract directly, the Member State concerned shall inform
         the Commission thereof. The United Kingdom may decide to apply this
         subparagraph to Northern Ireland.
         Where the competent authority decides to award a public service contract
         directly, it shall lay down measurable, transparent and verifiable
         performance requirements. Such requirements shall be included in the
         contract.
         The performance requirements shall in particular cover punctuality of
         services, frequency of train operations, quality of rolling stock and
         transport capacity for passengers.
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                                DGE 2                                          EN
 ---pagebreak---                    The contract shall include specific performance indicators enabling the
                   competent authority to carry out periodic assessments. The contract shall
                   also include effective and deterrent measures to be imposed in case the
                   railway undertaking fails to meet the performance requirements.
                   The competent authority shall periodically assess whether the railway
                   undertaking has achieved its targets for meeting the performance
                   requirements as set in the contract and shall make its findings public.
                   Such periodic assessments shall take place at least every five years. The
                   competent authority shall take appropriate and timely measures,
                   including the imposition of effective and deterrent contractual penalties if
                   the required improvements in quality of services or cost-efficiency, or
                   both, are not achieved. The competent authority may at any time wholly
                   or partially suspend or terminate the contract awarded under this
                   provision if the operator fails to meet the performance requirements.
         4b. Unless prohibited by national law, the competent authority may decide to
             award public service contracts for public passenger transport services by rail
             directly where they concern operating only passenger rail services by an
             operator which manages simultaneously the entire or the major part of the
             railway infrastructure on which the services are provided, where that railway
             infrastructure is excluded from the application of Articles 7, 7a, 7b, 7c, 7d, 8,
             13 and Chapter IV of Directive 2012/34/EU of the European Parliament and of
             the Council* in accordance with Article 2(3)(a) or (b) of that Directive.
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                                         DGE 2                                             EN
 ---pagebreak---                  By way of derogation from Article 4(3), the duration of directly awarded
                 contracts pursuant to this paragraph and paragraph 4a of this Article shall not
                 exceed 10 years, except where Article 4(4) applies.
                 Contracts awarded in accordance with this paragraph and paragraph 4a shall be
                 published, while taking into consideration the legitimate protection of
                 confidential business information and commercial interests.
            ______________
            *    Directive 2012/34/EU of the European Parliament and of the Council
                 of 21 November 2012 establishing a single European railway area (OJ L 343,
                 14.12.2012, p. 32).’;
        (f) Paragraph 5 is replaced by the following:
            ‘5.  In the event of a disruption of services or the immediate risk of such a
                 situation, the competent authority may take emergency measures.
                 The emergency measures shall take the form of a direct award or a formal
                 agreement to extend a public service contract or a requirement to provide
                 certain public service obligations. The public service operator shall have the
                 right to appeal against the decision to impose the provision of certain public
                 service obligations. The period for which a public service contract is awarded,
                 extended or imposed by emergency measures shall not exceed two years.’;
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                                             DGE 2                                            EN
 ---pagebreak---         (g)   The following paragraph is inserted:
              ‘6a. In order to increase competition between railway undertakings, competent
                    authorities may decide that contracts for public passenger transport services by
                    rail covering parts of the same network or package of routes are to be awarded
                    to different railway undertakings. To this end, the competent authorities may,
                    before launching the competitive tendering procedure, decide to limit the
                    number of contracts to be awarded to the same railway undertaking.’;
        (h)   in paragraph 7, the following subparagraph is inserted after the first subparagraph:
              ‘For cases covered by paragraphs 4a and 4b, such measures shall include the
              possibility to request an assessment of the substantiated decision taken by the
              competent authority by an independent body designated by the Member State
              concerned. The outcome of such assessment shall be made publicly available in
              accordance with national law.’.
(6)     The following Article is inserted:
        ‘Article 5a
        Rail rolling stock
        1.    With a view to launching a competitive tendering procedure, competent authorities
              shall assess whether measures are necessary to ensure effective and
              non-discriminatory access to suitable rolling stock. This assessment shall take into
              account the presence of rolling stock leasing companies, or of other market actors
              providing for the leasing of rolling stock, in the relevant market. The assessment
              report shall be made publicly available.
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                                                DGE 2                                           EN
 ---pagebreak---         2. Competent authorities may decide, in accordance with national law and in
           compliance with State aid rules, to take appropriate measures to ensure effective and
           non-discriminatory access to suitable rolling stock. Such measures may include:
           (a)    the acquisition by the competent authority of the rolling stock used for the
                  execution of the public service contract with a view to making it available to
                  the selected public service operator at market price or as part of the public
                  service contract pursuant to Article 4(1)(b), Article 6 and, if applicable, to the
                  Annex,
           (b)    the provision by the competent authority of a guarantee for the financing of the
                  rolling stock used for the execution of the public service contract at market
                  price or as part of the public service contract pursuant to Article 4(1)(b),
                  Article 6 and, if applicable, to the Annex, including a guarantee covering the
                  residual value risk,
           (c)    a commitment by the competent authority in the public service contract to take
                  over the rolling stock at predefined financial conditions at the end of the
                  contract at market price, or
           (d)    cooperation with other competent authorities in order to create a larger pool of
                  rolling stock;
        3. If the rolling stock is made available to a new public transport operator, the
           competent authority shall include in the tender documents any available information
           about the cost of maintenance of the rolling stock and about its physical condition.’.
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                                              DGE 2                                              EN
 ---pagebreak--- (7)     In Article 6, paragraph 1 is replaced by the following:
        ‘1.   All compensation connected with a general rule or a public service contract shall
              comply with Article 4, irrespective of how the contract was awarded. All
              compensation of whatever nature connected with a public service contract not
              awarded according to Article 5(1), (3) or (3b) or connected with a general rule shall
              also comply with the provisions laid down in the Annex.’.
(8)     Article 7 is amended as follows:
        (a)   Paragraph 1 is replaced by the following:
              ‘1.    Each competent authority shall make public once a year an aggregated report
                     on the public service obligations for which it is responsible. That report shall
                     include the starting date and duration of the public service contracts, the
                     selected public service operators and the compensation payments and exclusive
                     rights granted to those public service operators by way of reimbursement. The
                     report shall distinguish between bus transport and rail transport, enable the
                     performance, quality and financing of the public transport network to be
                     monitored and assessed and, if appropriate, provide information on the nature
                     and extent of any exclusive rights granted. The report shall also take into
                     consideration the policy objectives as stated in public transport policy
                     documents in the Member State concerned. Member States shall facilitate
                     central access to these reports, for instance through a common web portal.’;
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                                                 DGE 2                                            EN
 ---pagebreak---         (b)   In paragraph 2, the following point is added:
              ‘(d) the envisaged starting date and duration of the public service contract.’.
(9)     Article 8 is amended as follows:
        (a)   paragraph 2 is replaced by the following:
              ‘2.    Without prejudice to paragraph 3,
                     (i)    Article 5 shall apply to the award of public service contracts for
                            passenger transport services by road and by track-based modes other than
                            rail such as metro or tramways from 3 December 2019.
                     (ii)   Article 5 shall apply to public passenger transport services by rail
                            from 3 December 2019.
                     (iii) Article 5(6) and Article 7(3) shall cease to apply from … [6 years after
                            the date of entry into force of this amending Regulation st11198].
                     The duration of contracts awarded in accordance with Article 5(6)
                     between 3 December 2019 and... [6 years from the entry into force of this
                     amending Regulation st 11198] shall not exceed 10 years.
                     Until 2 December 2019, Member States shall take measures to gradually
                     comply with Article 5 in order to avoid serious structural problems in particular
                     relating to transport capacity.
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                                                  DGE 2                                          EN
 ---pagebreak---                   Within six months after … [three years after the date of entry into force of this
                  amending Regulation st 11198], Member States shall provide the Commission
                  with a progress report, highlighting the implementation of any award of public
                  service contracts that comply with Article 5. On the basis of the
                  Member States’ progress reports, the Commission shall carry out a review and,
                  if appropriate, submit legislative proposals.’;
        (b) The following paragraph is inserted:
            ‘2a. Public service contracts for public passenger transport services by rail directly
                  awarded on the basis of a procedure other than a fair competitive procedure as
                  of … [the date of entry into force of this amending Regulation st 11198]
                  until 2 December 2019 may continue until their expiry date. In derogation from
                  Article 4(3), the duration of such contracts shall not exceed 10 years, except
                  where Article 4(4) applies.’;
        (c) in paragraph 3, point (d) is replaced by the following:
            ‘(d) as from 26 July 2000 and before … [the entry into force of this amending
                  Regulation st 11198] on the basis of a procedure other than a fair competitive
                  tendering procedure.’.
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                                              DGE 2                                           EN
 ---pagebreak---                                                 Article 2
This Regulation shall enter into force on … [12 months after the date of its publication in the
Official Journal of the European Union].
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at...,
For the European Parliament                                  For the Council
The President                                                The President
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                                                 DGE 2                                          EN