New EU Commissioners’ Rail Plans Need Funding Commitment for Future Competitiveness

As Europe looks to strengthen its position on the global stage, the newly appointed EU Commissioners have outlined ambitious plans for the future of rail transport. However, bringing these projects to life will require decisive action and significant investment.

On behalf of the European rail supply industry, UNIFE Director General Enno Wiebe congratulated the new EU Commissioners and praised their performance during the hearings and their key policy pledges. According to UNIFE's press release, they are now eagerly awaiting the final endorsement of the new European Commission by the European Parliament on 27 November, with the hope of a smooth start on 1 December. "We congratulate all the newly appointed EU Commissioners on their successful hearings, and their aim to ensure Europe is strong for the years ahead must be applauded," said Wiebe. However, he added, "A robust discussion on funding must be had in order to achieve these plans."

To keep Europe competitive and strong, the new EU Commissioners have a plan. 🗺️

🚊🌲💻🔧This includes completing the TEN-T network, delivering a high-speed rail plan, and focusing on the challenges facing Europe - such as defence, competitiveness, climate change and skills.… pic.twitter.com/rwBj6aL7lq

— UNIFE The RAIL IND. (@UNIFE) November 21, 2024

A Focus on Technology and Infrastructure

One key area where UNIFE sees potential for growth and innovation is completing the TEN-T network. The industry recognizes EU Transport Commissioner Apostolos Tzitzikostas’ commitment to finishing the network but stresses that this must include investments in essential rail technologies. The European Rail Traffic Management System (ERTMS) and Digital Automatic Coupling (DAC) are crucial to enhancing the speed, reliability, and capacity of rail services for both passenger and freight transport. These technologies are crucial for improving rail services across Europe and critical for military mobility, ensuring faster and more efficient movement of troops, armaments, and military hardware across the continent. According to UNIFE, with EU funding already stretched thin, this is a critical concern and the European Commission needs to look for additional sources of financing.

To support the rail sector’s transformation, UNIFE advocates for including rail projects in funding mechanisms beyond the Recovery and Resilience Funds (RRF) and the Connecting Europe Facility (CEF). Specifically, they suggest that funds should be sourced from the Social Climate Fund (SCF) and revenues generated through the EU Emissions Trading System (EU ETS). These additional funding streams would provide the financial support necessary for the TEN-T and high-speed rail plans.

UNIFE also welcomed the Clean Industrial Deal, a key initiative focusing on European industries' competitiveness. The plan’s goal to support clean technologies, including rail, is a positive step, but ensuring that rail’s unique needs are fully addressed will be important. Wiebe added, "This is a real opportunity for Europe to create jobs in many regions which are lagging behind, but also to develop them. The European rail supply industry is the glue that holds together many communities, and has the potential to expand into many more through a revised EU public procurement framework."

Public Procurement Reforms and SME Support

On the topic of public procurement, UNIFE applauded the revision of the European public procurement framework announced by EU Executive Vice-President Stéphane Séjourné. UNIFE believes the revision should strengthen competitiveness for European suppliers and SMEs, notably by pointing out best value procurement (MEAT) and incorporating EU ‘value-added’ criteria in tenders. Another area where UNIFE is focused is the chemical regulations and PFAS (per- and poly-fluoroalkyl substances). While UNIFE fully supports the phase-out of PFAS, the industry faces challenges due to the lack of proven PFAS alternatives for many applications. The short derogations timeline could potentially disrupt the rail supply chain, as viable replacements for PFAS have not yet been developed at an industrial scale.

A Long-Term Commitment to Rail Mobility

As Europe continues to address the challenges posed by climate change, economic recovery, and geopolitical security, the rail sector is poised to play a vital role. UNIFE’s calls for continued investment in rail infrastructure and technology reflect the need for a stable, strategic funding commitment to ensure that the rail industry remains a cornerstone of Europe’s transportation network. Wiebe said, "High-speed rail and improving military mobility are key priorities, and if given assurances about policy and investment direction, the European rail supply industry can assist with creating jobs and ensuring European security."

Source: UNIFE