European Rail Industry Fears Setback as EU Considers Infrastructure Funding Cuts

Europe’s rail sector is warning that potential cuts to the EU’s flagship infrastructure programme could undermine efforts to boost competitiveness, strengthen supply chains and accelerate decarbonisation. As negotiations over the next Multiannual Financial Framework intensify, CER is urging Member States to protect rail investment and maintain strong support for the Connecting Europe Facility.

As the European Council considers possible cuts to funding in the next Multiannual Financial Framework (MFF), the Community of European Railway and Infrastructure Companies (CER) is urging policymakers to maintain the strongest possible ambition for rail investment.

The Connecting Europe Facility (CEF), the EU’s main programme for transport infrastructure, remains a cornerstone for the development of rail and wider mobility projects. The sector had hoped to see its budget increase to €100 billion in the next MFF to address growing investment needs at a time when rail is becoming increasingly important for Europe’s competitiveness, decarbonisation, defence and energy security.

Concerns Over Proposed Budget Reductions

An MFF negotiating box expected at this week’s European Council meeting points to a reduction in the overall EU budget compared with the European Commission’s proposal, including potential cuts to the Connecting Europe Facility.

CER is among 45 European transport organisations that have called on policymakers to increase CEF funding from its current level of just over €50 billion for transport to at least €100 billion. The association warns that reducing the programme would weaken one of the EU’s most effective tools for financing cross-border infrastructure, removing bottlenecks and completing the Trans-European Transport Network (TEN-T).

CEF Seen as Essential for European Connectivity

According to CER, CEF delivers clear European added value by supporting projects that individual Member States cannot deliver alone. This includes cross-border rail links, missing links, interoperability upgrades and military mobility infrastructure.

The organisation argues that these investments are not optional but essential for building a stronger Single Market, more resilient supply chains, affordable mobility and a shift towards low-emission transport.

CER therefore calls on Member States to safeguard CEF during the ongoing MFF negotiations and ensure that rail-related transport funding remains aligned with Europe’s strategic objectives.

Rail Must Remain Central to the New EU Budget Architecture

CER also stresses the importance of a coherent approach across the EU’s future budget framework.

The organisation believes that National and Regional Partnership Plans should continue supporting rail and public transport projects that contribute to TEN-T, climate and competitiveness goals. At the same time, the European Competitiveness Fund should complement rather than replace dedicated infrastructure funding by supporting industrial capacity, clean technologies and innovation across the rail value chain.

"Europe cannot build competitiveness, resilience and decarbonisation on underfunded infrastructure. CEF is one of the EU budget’s clearest tools for delivering European added value. A strong CEF will accelerate cross-border connectivity, strengthen the Single Market and make Europe’s climate and energy goals easier to reach," said CER Executive Director Alberto Mazzola.

_{Source: CER}