Denmark’s EU Presidency Puts Rail Funding, Climate Targets, and Defence on Track

The future of Europe’s rail network is being written in Brussels—and Denmark holds the pen. With funding, digitalisation, and defence on the agenda, the Danish Presidency may be the turning point rail advocates have waited for.

As Denmark assumes the rotating Presidency of the Council of the European Union, the country's leadership over the next six months will be pivotal in shaping the future of Europe’s rail network, transport decarbonisation strategy, and security framework. The Danish Presidency coincides with critical negotiations on the European Union’s Multiannual Financial Framework (MFF), the EU’s long-term budget, expected to be formally proposed by the European Commission in July. This places Copenhagen in a strategic position to influence the financial direction of EU transport policy, particularly with regard to rail investment, innovation funding, and climate commitments.

According to UNIFE, the association representing the European rail supply industry, the Danish Government now has an opportunity to secure vital funding for key EU programmes, such as the successors to the Connecting Europe Facility (CEF), Horizon Europe, and the planned Competitiveness Fund. These instruments are expected to play a central role in modernising Europe’s rail infrastructure and deploying essential technologies such as the European Rail Traffic Management System (ERTMS). As rail demand grows, ensuring these funding lines are protected and expanded will be crucial to achieving modal shift, economic growth, and emissions reduction goals across the continent.

Strategic Rail Investment and ERTMS Rollout to Shape Europe’s Transport Future

Denmark’s own commitment to rail digitalisation offers a strong model. The country is currently rolling out ERTMS Level 2 signalling across its entire national network, with a target completion date of 2033. As UNIFE points out, Denmark’s leadership on digitalisation provides credibility as it advocates for broader European rollout. "Denmark can deliver on its pledge of Digital Leadership," UNIFE notes, adding that adequate funding must be made available to accelerate the deployment of ERTMS across Europe.

ERTMS has clear implications for both civilian and military mobility. It is not only essential for efficient and safe passenger and freight services, but also for organising rail traffic during times of crisis or conflict. The system’s dual-use functionality supports the objectives of the EU’s TEN-T Regulation and will be fundamental in delivering the forthcoming High-Speed Rail Plan.

Climate Targets and Budget Decisions Will Define Rail’s Long-Term Trajectory

A second key milestone expected during Denmark’s Presidency is the release of the European Commission’s proposal to revise the EU Climate Law and introduce a binding 2040 greenhouse gas reduction target. UNIFE supports a 90% domestic emissions cut, alongside robust transport-specific objectives. Achieving this target will demand a long-term commitment to rail as a decarbonised mode, and funding certainty for public and private stakeholders across the industry.

Taking the long way home. Typically, travel by train and ferry emits only 10% of the greenhouse gases compared to flying. pic.twitter.com/fM4zlOCE21

— Pádraic Fogarty (@whittledaway) August 18, 2024

As UNIFE Director General Enno Wiebe put it, "Public budgets are about choice. By choosing investment in rail in these upcoming negotiations, the EU institutions can take a big step forward in cutting transport emissions, boosting commerce and protecting Europe." Climate policy and rail financing are increasingly interlinked, and Denmark’s role in shaping both will influence the EU’s ability to meet its neutrality goals by 2050.

Rail Mobility for European Defence and Competitiveness

Denmark’s Presidency arrives amid growing calls for the EU to prioritise infrastructure that serves both civilian and military purposes, particularly in the context of NATO cooperation and strategic autonomy. UNIFE points out the importance of including rail military mobility projects in national and EU-level spending plans, ensuring that rail corridors can support defence logistics as well as commercial transport. This dual capability is vital to maintaining operational readiness, strategic flexibility, and internal market stability in increasingly uncertain geopolitical conditions.

The Danish focus on European competitiveness is also expected to influence legislative reform. UNIFE urges the Presidency to work with industry on revising the EU’s Public Procurement Directives, ensuring a stronger legal foundation for European preference in rail-related tenders. Such a move would help counterbalance international competition and support the EU’s rail supply industry in maintaining its technological and market leadership.

Research, Innovation, and the Future of European Rail Partnerships

Finally, the Danish Presidency has a critical role to play in safeguarding European rail innovation. As part of the MFF talks, a successor to the Europe’s Rail Joint Undertaking — the public-private partnership dedicated to rail research — must be secured. This initiative has been a cornerstone of the sector’s progress on automation, digitalisation, and green technologies. UNIFE says that continued funding and political backing for such partnerships will be essential to sustain the competitiveness of Europe’s rail supply industry.

"We want to make a note of the work undertaken by the Polish Presidency, which complements many of the priorities of the Danish Presidency," said Enno Wiebe. "We sincerely thank them for their hard work and dedication... and we will remain in touch as there is strong potential for future collaboration, even though the baton has passed."

Source: UNIFE; European Commission