Supporters claim liberalization will allow revamped train services to genuinely compete with roadways across the EU

By Martin Banks

Date: 30/10/03

RAIL liberalization came a step closer when MEPs last week approved a wide-ranging package of proposals at the monthly plenary in Strasbourg.

Central to the rail plans is a desire to see Europe's train-transport system, still suffering from years of under-investment and neglect, offer genuine competition to the continent's roads.

Under the plans, all freight traffic will be opened up to competition by 2006 and passenger traffic by 1 January, 2008.

The proposals were approved by MEPs at a second reading last Thursday (23 October), with the exception of the Greens/European Free Alliance group.

“We see neither need nor justification for that now,”.said Belgian Agalev deputy Jan Dhaene. “Experience with liberalization shows that diligence is necessary to avoid major disasters.”

The big stumbling block, however, is in regard to member states who are stubbornly resisting change. Some, primarily France, Belgium and Luxembourg, who cherish their mostly state-owned rail monopolies, do not even want to discuss liberalization of passenger traffic at the moment.

Trying to sell rail liberalization in countries whose citizens are proud of a rail network that rivals air travel for speed, safety and reliability, is no easy task. But that is the challenge facing Parliament's 'rail' rapporteurs who will now enter intense, behind-the-scenes negotiations with EU transport ministers in a bid to thrash out a deal.

Their, some might say ambitious, goal is to conclude talks before Christmas, leading to the proposals' third and final reading by MEPs.

That will be a formality and will pave the way for a 'fast-track' deregulation.

“These talks over the next few days and weeks are absolutely crucial,”.says Socialist MEP Mark Watts, a member of the assembly's transport committee, whose frustration at the slow pace of liberalization is shared by many.

“We simply cannot afford to put this off any longer. The rail network is rotting around us, so we need liberalization and we need it now.”

Some member states, notably the UK, Sweden and Germany, have already taken giant strides towards this, although even pro-reform MEPs such as Watts are reluctant to hold up Britain as a role model because of its patchy record on liberalization.

However, what cannot be disputed is that since rail privatization, the UK has recorded some of the highest rail passenger kilometre and freight traffic figures in the EU - both have grown by more than 20% since 1996.

Investment has increased and, despite a spate of rail accidents, figures show that, overall, liberalization has had no adverse effect on the continuing improvement in safety.

German centre-right deputy George Jarzembowski, one of Parliament's rail rapporteurs, says the aim is to get more traffic away from Europe's congested roads and onto the railways.

“Passenger traffic has to be moved from the roads and air onto rail because the increase in road and air traffic is straining the existing infrastructure.”

The European People's Party, Parliament's largest political group, is now pressing for a rapid convening of the Conciliation Committee and a swift agreement between Council and Parliament.

But there is more to the rail package than liberalization. MEPs also approved radical plans which include the introduction of airline-style 'black boxes' (flight recorders) in trains and of 'driving licences' for train drivers.

There are also proposals for a European Railway Agency to oversee the implementation of the new rules.

Article considers a European Parliament decision on 23 October 2003 granting railway companies free access to rail infrastructure, across EU borders, by 1 January 2006 for the purpose of operating freight services and combined transport, and by 1 January 2008 to operate passenger services.