The European Commission published the draft Fourth Railway Package at the end of last month. This was described as a "comprehensive package of measures to deliver better quality and more choice in railway services". The draft Package addresses the following.

Safety Authorisations: The Commission has taken the view that it is possible to cut the costs of issuing safety authorisations for both vehicles and operators if the European Railway Agency becomes the EU wide authority for issuing such authorisations. The Commission believes that this change could save €500 million by 2025.

Opening of domestic passenger services: From December 2019, public service rail contracts will be subject to mandatory tendering and train operators will be entitled to offer "competing commercial services". This would create significant opportunities for train operators to run services in parts of Europe where public sector train operation prevails. The Commission estimates that services which may be affected by these provisions currently account for over 90% of all rail journeys.

In reaching this decision, the Commission has had regard to countries which have opened up their markets, such as Sweden and the UK, as it appears to view this experience positively.

Fair access: The Commission is looking for there to be independence between infrastructure managers and train operators as they see this as a means of ensuring fair access for those who want it. Infrastructure managers should act in a non-discriminatory way and also co-operate with other infrastructure managers to develop a pan- European network. Infrastructure managers would "control all the functions at the heart of the rail network - including infrastructure investment planning, day-to-day operations and maintenance, as well as timetabling".

Although the Commission prefers full institutional separation it appears to have acknowledged that this is unattainable in some countries (at least in the shorter term) and has accepted that vertically integrated railways can deliver non-discriminatory fair access provided there is separation of legal, financial and operational issues.

As an incentive to ensure the "correct" behaviour, the Commission has proposed that operators which are independent of an infrastructure manager have access to the full market for passenger rail services whereas operators which are part of a vertically integrated organisation would only have such access if they have satisfied the Commission that fair access is available in their home market.

Staff issues: The Commission has expressed the view that the new regime should create new and better jobs but is nevertheless aware of a concern that a newly liberalised rail industry may not be seen as an attractive place to work. It has therefore proposed that member states should be entitled to create regulations which go beyond existing European rules which protect employees on a transfer of an undertaking.

The Commission recognises that train travel is expensive and that with public finances being squeezed the problem could be exacerbated such that in time train travel could be affordable only by the few. In proposing this package, the Commission is looking to promote innovation and competition and therefore efficiency.

In order to become law, the proposals need the approval of the European Parliament and member states.

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