EU Budget 2027-2033: Rail Sector Welcomes Vision for Investment and Competitiveness

During his confirmation hearing, Commissioner-designate Piotr Serafin outlined a streamlined EU budget that prioritizes rail investment, green and digital transitions, and competitiveness.

Commissioner-designate Piotr Arkadiusz Serafin delivered a compelling vision for the next Multiannual Financial Framework (MFF) during his confirmation hearing before the European Parliament. The proposed budget, set to shape Europe’s priorities from 2027 to 2033, will be streamlined, policy-oriented, and aimed at promoting reforms and investments.

New Approaches to Budget Allocation

According to CER, addressing the European Parliament Committees on Budgets, Civil Liberties, Justice and Home Affairs, and Legal Affairs, Serafin pointed out that the next MFF will diverge significantly from the current structure. Inspired by the Recovery and Resilience Facility, EU funds will align with policy objectives, linking project financing to national reforms. Serafin said that regional administrations must remain active participants, ensuring balanced investment across Member States. He also mentioned the importance of respecting the rule of law as a condition for funding, an approach that strengthens EU values alongside its financial strategies.

The future MFF will introduce enhanced flexibility in budget allocation while simplifying fund application processes. To support the green and digital transitions, Serafin presented plans to maximize public and private capital through grants, guarantees, and loans. A new Competitiveness Fund will focus on scaling up businesses, fostering R&D, and accelerating innovation. To secure resources, Serafin proposed expanding the EU’s Own Resources, using revenues from mechanisms like the Carbon Border Adjustment Mechanism (CBAM) and the Emissions Trading System (ETS). Additional measures, such as taxes on large multinational corporations, are also under consideration.

Trains are a key driver of territorial cohesion💙

In Antwerp, @Eurocities officially launched ‘Prioritising Fast and High-Quality Passenger Train Connections in Europe’.

An opportunity to discuss the European #HighSpeedRail Network to connect EU capitals & urban areas🚄 pic.twitter.com/7G4nyPk69P

— CER🚆 #OnTrackForEurope (@CER_railways) November 14, 2024

Railways as a Backbone of European Competitiveness

During the hearing, Serafin addressed the long-term investment challenges for projects like the Trans-European Transport Network (TEN-T), pointing out the need for predictable resource allocation beyond the MFF’s duration. This perspective aligns with the rail sector’s demand for sustainable, interconnected transport solutions. CER Executive Director Alberto Mazzola commented, "European competitiveness cannot be enhanced without a solid transport system, of which railways must be the backbone." He mentioned the value of rail connectivity in promoting regional cohesion and the EU Single Market, calling for strong funding for cross-border projects, the European Rail Traffic Management System (ERTMS), and Digital Automatic Coupling technologies.

The rail sector is optimistic about the MFF’s potential to prioritize rail as a sustainable and efficient transport mode. Mazzola added, "The next MFF must acknowledge railways' competitive advantages in terms of safety, sustainability, energy efficiency, and security. National projects must also be interconnected to enhance the overall system."

A Policy-Oriented Framework for Europe’s Future

As Serafin prepares to finalize the new MFF, the focus remains on creating a budget that supports green and digital transitions while ensuring Europe’s global competitiveness. By integrating rail into this vision, the EU can enhance its transport infrastructure, meet climate goals, and strengthen regional cohesion.

Source: CER