Press Release The EU's Assembly of Regional and Local Representatives CdR/13/89.en Brussels, 9 October 2013 The fourth European railway package: recognising the role of the regions is vital for the reform to succeed The regions are indispensable in ensuring the long-term success of the reform to complete liberalisation of European railways. They must therefore be closely involved in decisionmaking bodies and bodies supervising infrastructure managers. They should also be given a degree of discretion when awarding rail transport contracts. This is the conclusion of the opinion unanimously adopted today by the Committee of the Regions (CoR) on the "Fourth Railway Package. At the beginning of the year the European Commission unveiled its proposal on the Fourth Railway Package, the last stage in the European railways reform to liberalise the system by 2019. Besides opening domestic rail transport to all operators, this legislative package envisages a clear separation between rail transport as such and rail network management, together with more standardised safety certification for trains. According to CoR rapporteur Pascal Mangin (FR/EPP), member of the Alsace regional council, liberalisation should not be seen as an end in itself: the main purpose should be to improve the range and quality of services for users. It is also important to clarify relations between rail operators and network managers. As the link between operators and the final users, whose needs they know, local and regional authorities are key stakeholders in the rail system. It is essential that they be involved in various aspects of the reform and in the newly established bodies. The role and quality of regulators is also crucial to the success of the reform. While emphasising the need to encourage a modal shift from road to rail for environmental reasons, the CoR's recommendations fall into three main areas: Public service obligations The Commission would like to make competitive tendering compulsory for the award of public rail service contracts for shorter routes. This change to award procedures is one aspect of the reform which will affect local and regional authorities most directly. The CoR advocates a more flexible approach allowing local authorities to retain the option of choosing between competitive tendering and direct award. In particular, direct award should remain an option for contracts on a limited number of kilometres per year. However, the regulator needs to strictly monitor direct awards to avoid any monopolistic excesses. With regard to state aids, the CoR rejects – in line with the position of the European Parliament and the Council - the proposed mandatory, systematic notification of all state aid measures for public transport services. Market opening The CoR recommends that local and regional representatives are systematically involved in the management boards of infrastructure managers, and in the coordination committees responsible for supervising activities of infrastructure managers. Similarly, the CoR should be kept informed of developments in the network of infrastructure managers, a new body envisaged by the reform. Increased powers for infrastructure managers must go hand in hand with making them more answerable at local level. CoR members would also like a representative responsible for relations with local and regional authorities to be appointed within infrastructure managers. With regard to the sensitive issue of separating infrastructure managers and historical operators (unbundling), the idea that total separation of activities is the best solution does not, in the CoR's view, belong in the draft directive, which should remain neutral in this respect. Improvements are therefore still needed to this proposal, particularly in terms of adapting it more effectively to smaller networks. Competitiveness in the rail sector must not be at the expense of the social framework. The CoR demands that the references to the social framework in the Commission's proposals are worked out in greater detail in order to prevent any risk of social dumping. Technical simplification The CoR is in favour of a stronger role for the European Railway Agency, enabling it to act as onestop shop responsible for authorising the sale of rolling stock and safety certificates. Given that local and regional authorities are involved in the financing of rolling stock and have a direct interest in improving interoperability and safety, the CoR would like to be consulted on the drafting of the Agency's budget and approval of its work programmes. Additional information: • Draft opinion of the Committee of the Regions on the Fourth Railway Package • Railways reform: the COTER commission supports the Commission's balanced position (CoR press release, 11/07/2013) • European Rail: Challenges Ahead (European Commission press release, 30/01/2013) Committee of the Regions The Committee of the Regions is the EU's assembly of regional and local representatives from all 28 Member States. Its mission is to involve regional and local authorities and the communities they represent in the EU's decision-making process and to inform them about EU policies. The European Commission, the European Parliament and the Council are obliged to consult the Committee in policy areas affecting regions and cities. It can appeal to the EU Court of Justice if its rights are infringed or it believes that an EU law infringes the subsidiarity principle or fails to respect regional or local powers. CoR website: www.cor.europa.eu Follow us on Twitter: @EU_CoR For more information, please contact: Nathalie Vandelle Tel. +32 2 282 24 99 nathalie.vandelle@cor.europa.eu & Previous press releases