During the event, the development of European rail transport was analysed from a scientific, political and trade union perspective. The focus was on the following questions: How can public rail transport be strengthened and made more accessible for people in Europe? How can the sector be made more appealing to employees? What experiences have been made with liberalisation? What challenges does the sector face in light of the EU's climate targets?

Scientific findings for a railway system that works
Tim Engartner, Professor of Social Sciences, University of Cologne, opened the event and introduced the basis for the discussion by identifying ten lessons learned from the railway systems in Germany, Sweden and Switzerland. Privatisation, deregulation and the liberalisation of the transport sector had pushed back national transport planning. Rail freight transport had been in decline since 1995, whereby passenger transport has only stabilised. Investment in rail infrastructure varies greatly between EU countries and the liberalised EU transport market has not necessarily led to improved services. Engartner argued in favour of national investment, concentrating as many sub-sectors as possible in one source (vertical integration) in the operation of rail systems, more state regulation and the direct awarding of contracts. After all, the pressure to achieve profitability had not least led to a deterioration in labour conditions. In order to promote rail transport, it is crucial to strengthen national railway markets and gradually create a single European railway area.

A sector in transition: consequences of liberalisation
In the subsequent panel discussion, which was moderated by Sabrina Ropp (Wiener Stadtwerke, Brussels Office), Livia Spera, General Secretary, European Transport Workers’ Federation (ETF), emphasised that the reputation of railway companies as reliable employers with good working conditions had been lost due to the liberalisation. This is also linked to the increasing labour shortage in the sector. Employees are seen as a cost factor and are under increasing pressure due to a lack of resources. This would show that more profitable rail connections do not automatically lead to better working conditions.

Sandro Santamato from the EU Commission's Directorate-General for Mobility and Transport (DG MOVE) emphasised the importance of the EU Commission's regulatory role in the development of a single European railway area. Regarding this, it has already taken various smaller initiatives that will gradually contribute to improving rail transport in Europe and further promote competition and an open market for transport companies. He reiterated that DG MOVE only considers the direct award of rail transport contracts, which is defended by the trade unions, as an exception and favours competitive tendering. But public funding and investment were also necessary.

The ‘invisible hand of the market’ does not regulate everything
However, Lukas Oberndorfer, Head of the Climate, Environment and Transport Department, Austrian Chamber of Labour, Vienna, believes that the EU must move away from neoliberal paradigms in order to achieve the its climate targets. Mobility policy was being misunderstood as competition policy; apparently the market was supposed to solve the challenges of the transition. However, liberalisation has not led to the required interoperability, but to deregulation and bureaucracy. He addressed the problem of the guidelines published by the EU Commission in June 2023 on the PSO Regulation (Public Service Regulation) favouring competitive tendering over direct award. However, this violates EU law and shows that the EU is on the wrong track.

Christian Wolmar, British author, journalist and Labour Party Member, gave a brief overview of the development of the British railway system. Although there are areas where competition can be useful, it is generally detrimental to the railway sector. Having a vertically organised institution that runs the sector with social and commercial considerations in mind is unbeatable. In addition to privatisation, the separation of infrastructure and railway operations therefore poses a fundamental problem. For Wolmar, the railway is an integral part of European societies, which could have a positive impact on environment, health, and general well-being; there is more to it than just profit. With this in mind, the EU should raise awareness, take initiatives and simplify structures.

Hope for a European railway network
According to Oberndorfer, the EU's goal must be to create a high-quality European rail system that takes social and environmental dimensions into account and achieves positive effects for employees, passengers, as well as environment and climate. This would require public funding, such as under the Recovery and Resilience Facility (RRF), and targeted taxation of air and road transport. European industrial policy must also take rail transport into account and promote production in Europe. A European employment policy that harmonises rail and safety standards and creates attractive jobs is necessary to mobilise the required workforce for the sector. Spera also wanted the new EU Commission to adopt a transport policy that takes measures to make rail transport more attractive than the alternatives by air and road.

Finally, Santamato reaffirmed the EU Commission's goal of driving forward common European rail transport by promoting standardised administration, the harmonisation of technological standards and the production of rail vehicles in Europe. Although there is still a long way to go, the search for digital solutions to overcome the challenges facing the sector is already underway.

Further information:
AK EUROPA: Railway liberalisation. Lessons learned
AK EUROPA: Common rules for certain types of combined transport of goods between Member States
AK STUDY: Legal opinion on the draft of the guidelines for the PSO regulation
AK EUROPA Policy Brief: The importance of Direct Awards for the European Railway System
AK EUROPA: Trans-European Transport Networks: Focus on employees!
AK EUROPA: Photo gallery