Brussels (Brussels Morning Newspaper) – The EU Commission approved a €112 million Polish State aid scheme to fund rail network interoperability.
The European Commission has agreed, under EU State aid rules, a €112 million Polish scheme to release technical barriers to rail interoperability. The scheme seeks to promote the shift of freight and passenger transport from road to rail and to enhance the security and efficiency of rail transport. The scheme will be supported through the Recovery and Resilience Facility (‘RRF’), following the EU Commission’s positive examination of Poland’s Recovery and Resilience Plan and its adoption by the EU Council.
What are the objectives of Poland’s rail aid scheme?
Poland plans to support the induction of the latest version of the European Railway Traffic Management System (‘ERTMS’) on vehicles operating on the Polish rail network. ERTMS is a single European railway administration and safety control system, aimed to supersede the different national systems currently in function throughout Europe, to improve cross-border rail interoperability and to enhance the competitiveness of rail transport.
According to the EU Commission, under the scheme, the assistance will take the form of direct assistance to railway companies and landlords of rolling stock for the acquisition and induction of ERTMS on-board equipment. The scheme will operate until 30 June 2026.
What guidelines did the EU Commission follow for approval?
The EU Commission evaluated the measure under EU State aid regulations, in particular Article 93 of the Treaty on the Functioning of the European Union on transport coordination and the Guidelines on State support for railway projects (‘Railway Guidelines’).
The EU Commission discovered that the scheme is necessary to harmonise transport and promote the use of intermodal transport, which is less polluting than road transport and decreases road congestion in line with the purposes of the EU Sustainable and Smart Mobility Strategy and the European Green Deal.
In addition, the EU Commission figured that the aid would have an ‘incentive effect’ as the beneficiaries would not undertake the investments in the lack of public support. Furthermore, the Commission found that the scheme is proportional, as it is restricted to the minimum necessary, and has a limited effect on competition and trade between Member States. On this basis, the EU Commission endorsed the Polish scheme under EU State aid rules.
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