Amendment of Community regulations concerning state aid for land transport

The provision of state aid in transport is covered by the general principles set out in the EC Treaty with regard to this field. Nevertheless, the need to define specific regulations concerning the coordination of such aid in land transport resulted from the provisions of Article 73 of that Treaty. These issues were regulated upon the entry into force of Regulation (EEC) 1107/70. The regulation aimed to: eliminate intermodal imbalances that could cause unfair competition in the transport market, regulate the issue of allocating financial aid, harmonize the method of providing financial support for railways, and establish conditions allowing for coordination initiatives and actions related to the provision of public service obligations, which remain in accordance with Articles 75, 77, and 94 of the Treaty. In light of the provisions of the aforementioned regulation, state aid may be granted for the purposes of transport coordination in the following cases:
■ supporting the financing of transport infrastructure (rail network and inland waterways) in cases where the undertaking contributes to infrastructure costs
■ for research and development of efficient and more effective forms of transport
■ in situations where such aid is of an exceptional nature and is granted to reduce excess transport capacity, until the entry into force of market access regulations (limited application)
■ for the purpose of providing compensation for public service obligations imposed by the state or a public authority as part of a public service obligation and if there is a tariff obligation other than that specified in Council Regulation (EEC) No 1191/69.

The proposal submitted by the European Commission in July 2000 regarding a draft new regulation governing the above-presented aspects of state aid coordination in land transport takes into account the conditions for creating a single EU transport market and the varied progress achieved by individual transport sectors in the liberalization process. At the current stage of the integration process, a need has arisen to consolidate into a single legal act all changes introduced over the 30 years of the validity of Council Regulation (EEC) No 1107/70 and to adapt the content of its provisions to the achieved degree of transport liberalization, especially land transport. It should be noted, however, that liberalization in land transport has not yet reached a state where free access to transport markets is fully guaranteed. Despite the fact that various initiatives aimed at creating level playing fields for competition within and between modes of transport have been intensified, the pace of market opening in road, rail, and inland waterway transport remains varied, particularly the capacity of these sectors to freely provide transport services.

The article comes from the journal “Logistyka” 2001/1.