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EU Strategy on Rail

MOBILITY & TRANSPORT

The EU has been actively working on enhancing the european Rail Transport infrastructure and services as part of its broader transport and environmental policies. The EU's strategy on Rail focuses on creating a seamless, efficient, and sustainable rail network across the continent, as well safety and standards. Key elements of the EU's strategy on rail include:
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  • Trans-European Transport Network (TEN-T): This is an effort to build and upgrade transport infrastructure across the EU, including rail networks. The goal is to connect all regions of the EU, enhance cohesion, and support growth and competitiveness through better connectivity.
  • Shift to Rail: The EU encourages a modal shift from road and air to rail transport to reduce carbon emissions, congestion, and energy consumption. Rail is seen as a more sustainable mode of transport, and the EU aims to make rail transport more attractive to both passengers and freight companies.
  • Single European Railway Area: This initiative aims to remove technical, administrative, and legal obstacles across the EU rail sector, creating a single, open market for rail services. This includes harmonizing standards, ensuring fair access to infrastructure, and opening domestic passenger markets to competition.
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  • Digitalization and Innovation: The EU promotes the adoption of digital technologies in the rail sector, such as ERTMS (European Rail Traffic Management System), to enhance safety, increase efficiency, and reduce costs. Innovation is also a key focus, with support for research and development in areas like hybrid, hydrogen, and battery trains, and smart infrastructure.
  • Funding and Investment: The EU supports rail infrastructure development through various funding mechanisms, including the Connecting Europe Facility (CEF), Cohesion Fund, and regional funds. These funds help finance projects that build, upgrade, and modernize rail infrastructure and services.
  • International Connectivity: The EU works to improve rail links with neighboring countries and regions, facilitating trade and travel. This includes efforts to extend key rail corridors beyond the EU borders and to harmonize operations and standards with neighboring countries.
  • Sustainability and Decarbonization: Rail transport is central to the EU's Green Deal, a set of policy initiatives aimed at making Europe climate neutral by 2050. The EU aims to increase the share of rail in overall transport and to reduce the environmental impact of the entire transport sector.
  • Passenger Rights: The EU has established a set of rights for rail passengers to ensure high-quality service, compensation in cases of delays, and assistance for passengers with reduced mobility.
  • Safety and Standards: Ensuring the safety of rail transport is paramount. The EU has strict safety standards and regulations, overseen by the European Union Agency for Railways (ERA), which works to enhance safety and interoperability of rail systems across member states.

​These initiatives and policies collectively represent the EU's comprehensive approach to developing a modern, efficient, and sustainable rail network that meets the needs of its citizens, supports economic growth, and contributes to environmental objectives.

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Length of national networks per country (thousand line-km, 2020) and relative change (2015-2020)
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Source: Statistical Pocketbook, 2022

Summary on EU Railways Packages

The EU strategy on rail transport is significantly shaped and described by the series of legislative frameworks known as the "Railway Packages." These packages are a collection of directives and regulations aimed at revitalizing and harmonizing the rail sector across the European Union. The main objectives are to create a more efficient, competitive, and customer-focused rail industry, essential for achieving the broader goals of the EU's transport policy. Here's a brief overview of the Railway Packages:
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  1. First Railway Package (2001): The First Railway Package laid the groundwork for liberalizing the rail freight market. It aimed to develop a more efficient and customer-oriented railway service by opening up access to the network, ensuring transparency in charging and capacity allocation, and separating infrastructure management from transport operations.
  2. Second Railway Package (2004): This package further liberalized international rail freight services and introduced new measures for safety and interoperability. It also established the European Railway Agency (now known as the EU Agency for Railways) to oversee safety and interoperability standards.
  3. Third Railway Package (2007): The Third Railway Package focused on the liberalization of passenger services, including international passenger services, and improved the rights and compensation for rail passengers across the EU. It also introduced a certification system for train drivers operating within the EU.
  4. Fourth Railway Package (2016): The Fourth Railway Package is the most ambitious and comprehensive. It aims to complete the single European railway area by removing the remaining barriers to the liberalization of rail transport. Key elements include the opening of domestic passenger railways to competition, the creation of a single European rail area (making it easier for companies to operate across borders), the introduction of the European Rail Traffic Management System (ERTMS), and new standards for interoperability and safety.

The Railway Packages are crucial for the EU's strategy on rail, as they not only aim to create an integrated European rail market but also to ensure that the rail sector contributes to the EU's broader economic, social, and environmental goals. The packages address various aspects, including market opening, interoperability, safety, social dimensions, and passenger rights, shaping a competitive and sustainable rail industry in the EU.

First Rail Package 2001

The First Railway Package, adopted in 2001, marked a significant step towards liberalizing and revitalizing the rail sector within the European Union. This package, often referred to as the "rail infrastructure package," consisted of three directives aimed at making the rail market more competitive and efficient, especially focusing on rail freight services.

Here are the key elements and impacts of the First Railway Package:

Key Elements:
  1. Non-Discriminatory Access: The package allowed rail operators to access the trans-European rail network on a non-discriminatory basis, ensuring that new entrants could compete with established operators.
  2. One-Stop-Shop for Rail Freeways: A proposal was made for the creation of a one-stop-shop to market rail freeways, aiming to streamline the process for operators to access rail infrastructure and services, thereby boosting the efficiency and attractiveness of rail freight.
  3. Improvements in Service Distribution: The package emphasized the need for better distribution of train paths, the establishment of a cost-reflective tariff structure, reduction of delays at borders, and the introduction of quality criteria for rail services.
  4. Creation of Freeways: The Commission outlined actions to set up freeways, dedicated rail corridors for freight, to facilitate faster and more reliable freight services across the EU.

Impacts and Assessment:
  1. Stabilization of Rail's Market Position: By mid-2006, an assessment conducted by the European Commission indicated that the implementation of the package had started to yield positive results. The position of railways relative to other transport modes had stabilized, indicating a halt or reversal of the previous decline in rail's market share.
  2. Safety and Employment: The high level of safety in rail transport was maintained and often improved. While there were losses in employment in some traditional rail sectors, these were partially offset by the creation of jobs in new railway undertakings that emerged due to the liberalization.
  3. Performance Improvement in Liberalized Markets: The Commission's communication in 2007 highlighted that member states which opened their rail freight markets to competition early on experienced significant improvements in rail freight traffic performance. This was particularly evident in comparison to member states where the market was still predominantly controlled by monopoly operators.

The First Railway Package laid the groundwork for a more competitive and customer-oriented EU rail sector, with a particular focus on enhancing rail freight services. Its implementation marked the beginning of a series of reforms aimed at transforming the European rail industry into a more efficient, sustainable, and competitive sector.

Legislation of the First Railway Package

Second Rail Package 2004

The Second Railway Package, proposed in 2002 and adopted in 2004, represented a significant stride towards the creation of an integrated European railway area. The package aimed at revitalizing the railways through enhanced safety, interoperability, and the further opening of the rail freight market.

Here are the primary components and impacts of the Second Railway Package:

Key Components:
  1. Liberalization of Rail Freight Services: The package accelerated the liberalization process by fully opening the rail freight market to competition starting from 1 January 2007. This move was expected to boost efficiency, reduce costs, and improve the quality of rail freight services across the EU.
  2. European Railway Agency (ERA): The establishment of the ERA, based in Valenciennes, France, was a significant development. The agency was tasked with providing technical support and working towards the harmonization of safety and interoperability standards across the EU rail network. The ERA aimed to address the issue of incompatible technical and safety regulations across different Member States, which were seen as major obstacles to the development of an efficient and integrated European railway sector.
  3. Common Procedures for Accident Investigation: The package introduced common procedures for investigating railway accidents, ensuring a uniform approach to safety and accident analysis across Member States. This was crucial for understanding the causes of accidents and preventing future occurrences.
  4. Establishment of National Safety Authorities: Each Member State was required to establish its own National Safety Authority to oversee railway safety, further standardizing safety practices and regulations across the EU.

Impacts and Role of the European Railway Agency:
  1. Driving Force in Modernizing Railways: The European Railway Agency was envisioned as a key player in the modernization of the European railway sector. By working towards aligning technical regulations and establishing common safety objectives, the ERA played a pivotal role in enhancing the safety, interoperability, and efficiency of the EU rail network.
  2. Alignment of Technical Regulations: One of the main handicaps to the development of the railway sector was the mutually incompatible technical and safety regulations in the Member States. The ERA's efforts to gradually align these regulations were fundamental to the development of a seamless and efficient European railway area.

The establishment of the European Railway Agency was particularly significant, symbolizing a concerted effort to address the fragmented nature of the EU rail sector and paving the way for a more integrated and competitive European railway system.

Legislation of the Second Railway Package

Third Rail Package 2007

The Third Railway Package, proposed in 2004 and adopted in October 2007, was aimed at further revitalizing the railways in Europe, particularly focusing on the international passenger transport market. It sought to complete the European regulatory framework for the rail sector by introducing measures that would liberalize international passenger services, enhance the rights of passengers, and establish a certification system for train crews.

Here are the primary components and impacts of the Third Railway Package:

Key Components:
  1. Open Access Rights for International Rail Passenger Services: The package granted open access rights for international rail passenger services, including cabotage, by 2010. Operators were allowed to pick up and set down passengers at any station along an international route, enhancing the flexibility and attractiveness of cross-border rail travel.
  2. European Driver License for Train Drivers: A significant step towards standardization and safety, the package introduced a European driver license for train drivers, allowing them to operate across the entire European network. The certification process, starting for cross-border drivers in 2009 and extending to all drivers by 2011, set basic requirements for educational level, age, health, knowledge, and practical training.
  3. Strengthening Rail Passengers' Rights: The package considerably strengthened the rights of rail passengers. Long-distance travelers were provided with a wider range of rights, while minimum quality standards were set for all passengers on all lines. These standards addressed non-discrimination of handicapped travelers or persons with reduced mobility, liability in cases of accidents, availability of train tickets, and personal security of passengers in stations.

Impacts:
  1. Liberalization of the Passenger Transport Market: By opening up the international passenger transport market, the Third Railway Package aimed to make rail travel more competitive and customer-oriented, providing passengers with more choices and fostering a more integrated European rail market.
  2. Standardization and Safety in Train Operations: The introduction of a European driver license for train drivers standardized the qualifications and training across the EU, enhancing the safety and efficiency of rail operations.
  3. Enhanced Passenger Rights and Service Quality: The strengthened rights for rail passengers and the establishment of minimum quality standards ensured a higher level of service and protection for all rail travelers, making rail travel a more attractive option.

By liberalizing the international passenger transport market, standardizing the certification of train crews, and enhancing passenger rights, the package played a crucial role in the ongoing process of revitalizing the European rail industry.

Legislation of the Third Railway Package

Fourth Rail Package 2016

The Fourth Railway Package, adopted in 2016, is a comprehensive set of reforms aimed at completing the Single European Railway Area and revitalizing the rail sector to make it more competitive against other modes of transport. It consists of five legislative texts organized into two main pillars, the 'technical pillar' and the 'market pillar,' both of which were negotiated in parallel.
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Technical Pillar: Adopted in April 2016, the technical pillar focuses on simplifying administrative processes and reducing the costs for railway undertakings operating across EU member states.

The technical pillar introduces a "One Stop Shop" through the European Union Agency for Railways, streamlining the process for firms operating in multiple member states, reducing the multitude of national rules, and enhancing interoperability, especially with the implementation of the European Rail Traffic Management System (ERTMS).


Market Pillar: Adopted in December 2016, the market pillar focuses on further opening the domestic rail passenger market to competition and improving the governance of railway infrastructure. The main components are:
The market pillar establishes the general right for railway undertakings established in one Member State to operate all types of passenger services across the EU. It aims to improve impartiality in the governance of railway infrastructure, prevent discrimination, and introduce competitive tendering for public service contracts in rail, leading to more choice and better quality of rail services for European citizens.

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The Fourth Railway Package addresses critical areas such as market opening, interoperability, safety, and governance, setting the stage for a modern and efficient European railway system.

Legislation of the Fourth Railway Package

​Technical Pillar

Market Pillar