Commission approves Danish scheme to promote rail transport interoperability

Background and further information:

The scheme aims to support the conversion of all regional and long-distance rail tracks operated by the Danish state to the European Rail Traffic Management System (ERTMS), the European standard for Automatic Train Protection (ATP) that allows an interoperable railway system in the European Union, between 2018 and 2023.

The Danish programme is designed to support the cost for rail freight operators of investing in this new equipment. The state support takes the form of direct grants to be used for fitting the new equipment in eligible new locomotives, and for retro-fitting such equipment in eligible locomotives already in use. The total budget of DKK 55 million (around €7.4 million) was set to be allocated to operators already present on the Danish rail network, as well as to new operators.

The Commission assessed the compatibility of the scheme under the 2008 Commission Guidelines on state aid for railway companies. The Commission concluded that the aid granted is necessary to achieve the intended objective of promoting interoperability of railway systems in the EU, in line with the Directive on rail interoperability, and that it is proportionate, in accordance with EU state aid rules.

The European Commission approved on 11 July 2017 a Danish scheme to support rail freight operators' investment in new on-board traffic management equipment, according to EU state aid rules. The scheme aims to contribute to making railway systems more interoperable in the European Union without unduly distorting competition.