Revised proposal on State aid to local bus and rail services

Revised European Commission proposal (28 pages, PDF) for a regulation to govern the compatibility of public funding to bus and passenger rail operators with the EC State aid rules. This would replace Council Regulation 1191/69.

The proposal would cover funding by local authorities to in-house operators or to operators appointed by a regulated open tender procedure, subject to the usual conditions about methods for setting the level of funding and information provision. No other procedures for selecting the operator would be permitted under the regulation, although the regulation would not prohibit other arrangements if they meet the Altmark criteria and therefore involve no State aid under Article 87(1). A FAQ (in French) claims that the new proposal is more flexible and respectful of subsidiarity, and highlights maximum contract lengths of eight years for bus services and 15 years for rail.

See also the PreLex file on this proposal.

For further information or advice please contact Franck Latrémolière.

Filed under DG Competition, Public transport, State aid.

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