Bonn boosts hopes of deal with Swiss

Date: 19/11/1998

By Simon Taylor

THE new German government's stance on road pricing has boosted hopes of reaching agreement with Switzerland on a wide-ranging accord before the end of the year.

Officials working for Transport Commissioner Neil Kinnock say they are optimistic that progress can be made at a meeting of EU transport ministers at the end of this month.

"The new German government is taking a different approach. Two weeks ago, I was pessimistic but the November Council could be an opportunity for doing it," said one.

Talks on the Swiss transport package ran into the sand earlier this year because of German and Austrian opposition to Bern's preference for charging trucks for every kilometre they drive.

German lorries are heavy users of Switzerland's trans-Alpine goods to transport their goods to southern Europe and Austria fears that high charges on Swiss roads will push more traffic onto its motorways.

But the chances of a deal with Switzerland have been improved by the new Bonn government's plans to introduce its own distance-related pricing scheme within two years, which formed part of the agreement reached at coalition talks between the SPD and the environmentalist Greens.

Commission officials say the key to agreeing the deal with Bern lies with the EU agreeing to a differentiated road pricing system which is based on hauliers' actual road usage. Previously, Germany had called for an across-the-board increase in the cost of road-tax vignettes.

The countries most directly affected by the Swiss deal - Germany, Austria and Italy - want the Union to agree its own charges package before reaching a deal with Bern to offset the impact of changes in Swiss tolls.

Commission officials believe that as soon as the three main countries affected reach agreement on the way forward, other EU governments will support their plans.

They also warn that Switzerland will have to show some flexibility on the package before the Union can agree it, but add that recent soundings suggest the Bern government is willing to improve its offer.

Key areas for improvement included the level of charges, changes to the transitional regime which would apply until the full package comes into force in 2005 and guarantees on problem areas such as customs clearance.

Hopes of a deal with Bern also depend on the outcome of a referendum on Switzerland's rail financing proposals to be held the day before EU transport ministers meet on 30 November. Bern is planning to spend 20 billion ecu on new rail projects which form an essential part of its plan to switch 60% of commercial traffic onto rail.

In September, the Swiss voted in favour of a new road system which levies a fee on the basis of every kilometre travelled and the weight of the truck. By raising the cost of truck journeys across Switzerland and making rail transport cheaper, Bern wants to cut the number of truck crossings and the environmental damage they cause.

The two transport deals with Bern are the only outstanding issues standing in the way of agreement on an overall EU-Switzerland accord, three years after negotiations began in 1995. The five other agreements, covering agriculture, free movement of persons, research, public procurement and technical barriers to trade, were finalised at the start of the year but cannot be implemented until the transport chapter is closed.

See also Sections 11.5 and 14.3.