Railway Renaissance: Greece and Italy Launch EUR 760M Plan to Rebuild Trust and Trains

Greece’s railways were supposed to get a routine upgrade. Instead, they’re getting a EUR 760 million Italian-fuelled overhaul—complete with high-speed trains, EU-backed infrastructure modernisation, and a renewed cross-border alliance built in the shadow of tragedy.

In a bid to rebuild both infrastructure and public confidence after the deadly Tempi train crash in 2023, Greece and Italy have signed a landmark EUR 760 million agreement to modernise Greek railways. The memorandum of cooperation, signed in Rome on May 12, brings together the Greek Ministry of Infrastructure and Transport and Italy’s Ferrovie dello Stato (FS Group), the owner of Greek operator Hellenic Train. According to RailwayPRO, Italy will invest EUR 360 million, while Greece commits over EUR 400 million from the EU Recovery and Resilience Facility to restore flood-damaged tracks and implement overdue safety systems. The deal signals a turning point for a strained transportation sector in desperate need of modernisation and oversight.

New Trains and Maintenance Hubs

The Italian investment will primarily fund the procurement of 23 new trains, including eight intercity high-speed and 15 suburban units, alongside the construction of state-of-the-art maintenance depots. These additions are expected to enter service by early 2027, contingent on manufacturer timelines. As reported by ekathimerini, the investment will be formalised in a revised contract between Hellenic Train and the Greek Ministry of Infrastructure. Prime Minister Kyriakos Mitsotakis called the agreement "a particularly important" milestone, while also acknowledging that Greece’s rail infrastructure must catch up to Italy’s standards. "This is essentially a restart of the relationship that we are currently building," he added, referencing the collapse of trust following the fatal collision in Tempi that killed 57 people.

From the Greek side, efforts will focus on repairing storm-damaged segments and completing the long-overdue installation of the European Train Control System (ETCS). The system, designed to prevent collisions by automatically halting trains on shared tracks, remains only partially operational in Greece. As Railway Gazette notes, Hitachi is currently equipping 115 units with onboard ETCS technology, while the Ministry of Infrastructure oversees upgrades to tracks and signalling. Key infrastructure projects include the Domokos–Krannonas and Paleofarsalos–Kalambaka sections, part of Greece’s main north–south corridor. These works are worth EUR 450 million and must be completed by mid-2026 to meet EU funding deadlines.

Clearing Bottlenecks and Restoring Trust: The Sepolia Underpass and Beyond

A critical part of the renewed cooperation includes projects like the Sepolia underpass in Athens, a bottleneck that has long stymied train reliability. The underpass, delayed for years, is now a priority to secure FS Group’s continued involvement. According to RailwayPRO, the memorandum reflects "a shared commitment to safety, digitalisation, and sustainable mobility," and outlines mutual objectives such as interoperability with the TEN-T network, adoption of low-emission technologies, and alignment with the EU’s Emissions Trading System (ETS).

In parallel with the rolling stock investment, Hellenic Train is launching a new strategic plan, focused on boosting both passenger and freight operations. CEO Roberto Rinaudo stated that the agreement "lays the foundation for our new rail investment programme in Greece," adding that it promises "strong multiplier effects on the Greek economy." Currently operating 274 daily services with a fleet of over 1,100 locomotives, coaches, and wagons, Hellenic Train has plans to expand into combined rail–road freight services and innovative logistics solutions. The new maintenance depots will play a key role in sustaining this growth while enhancing fleet reliability.

Greece and Italy Sign Agreements on Energy and Railway Investments //t.co/dJ4peWbsg4 pic.twitter.com/VPf4Yd4RkM

— Greek Reporter (@GreekReporter) May 13, 2025

Meanwhile, the political context of the agreement adds another layer of complexity. Italian Prime Minister Giorgia Meloni described the collaboration as the "revival of a vital strategic partnership," with Italy maintaining its position as Greece’s leading trading partner. The summit in Rome also included Italian and Greek deputy ministers for infrastructure, who signed a Memorandum of Understanding covering broader areas of transport policy, sustainability, and technical training.

A Greener Track Ahead: Aligning with EU Climate and Transport Goals

The partnership also supports EU ambitions for integrated, climate-friendly rail networks, particularly across Southern Europe. With ETCS deployment, digitalised safety protocols, and greener rolling stock, the agreement aligns with both countries’ obligations under EU climate legislation and transport decarbonisation targets. By positioning rail as a pillar of future mobility, Italy and Greece are not only investing in steel and sleepers—but in restoring public trust, damaged by tragedy, neglect, and years of underinvestment.

Sources: ekathimerini.com; Railway Gazzette; RailwayPRO