An ETF quick response to the EC ‘AccelerateEU’ communication
The opening line of the EC communication reads: “For the second time in less than five years, the dangers of Europe’s dependency on fossil fuel imports are becoming abundantly clear.”
The ETF couldn’t agree more. However, the AccelerateEU communication appears to be yet another example of the EC having learned too little, too late from the previous energy crisis, particularly as far as EU transport policy is concerned.
Here are a few highlights of the EC communication that the ETF can hardly ignore:
In response, the ETF believes that, as far as transport is concerned, the current energy crisis can only be effectively addressed through mass mobility. Member States should be allowed to directly invest public (taxpayer) money in public services, jobs and networks – whether in rail freight, long- and short-distance passenger rail, or urban public transport – rather than being forced to “sponsor” liberalisation through mandatory compensation to private operators under PSO regimes.
For this reason, among others, the ETF disagrees with the EC’s view of public funding as merely a trigger for private investment. In rail and urban public transport, there is limited scope to attract private interest. The low number of bidders in rail PSO tenders – barely 1.4 on average – is clear evidence. It appears the private sector has already drawn its own conclusion: there is little viable business case in operating public services.
On reducing the price of public transport as a measure of immediate relief, the ETF says: “yes, but.” Across all Member States, both rail commuting and urban public transport struggle with years of disinvestment, service and infrastructure depreciation almost beyond repair. This has come with poor infrastructure, staff shortages, frequent disruptions and, regrettably, accidents. Attracting more users require more means, more staff, more capacity, safer and more reliable transport. Years of unrealistic EU policies aimed to transport public service into a profit-making machinery, plus austerity measures, plus prioritisation of cross-border rail harmonisation projects have deepened the deficit. The EC must be prepared to admit it was in the wrong, and must therefore engage in long-term remedies before setting its eye on yet another source of revenue, as a means for relief.
The EC must not forget that availability, accessibility and attractiveness of public transport, rail and UPT, are key to ensuring a modal shift away from private cars. Free public transport will not help if the services are not able to move people in a timely, reliable and comfortable way. The modal shift requires expanding services, especially in peripheral areas. High quality jobs are key for this. Staff shortages caused by unattractive conditions are already forcing services to be cut and impeding the expansion of networks.
As for the EC suggestion for Member States to promote the use of rail passenger and rail freight – another measure pointed out in the communication, as a potential relief and immediate solution to the current crisis, this is – again – in total discrepancy with the policy pursued by the EC during the past two decades, centred on liberalisation. In the recent years, any attempt by Member States to keep rail freight and passenger operations under public control was sanctioned by the EU via infringement procedures or worse, via court actions. This came with reforms that cost thousands of jobs and caused drastic cuts in service in some of the largest rail freight operators in the EU. Stable, predictable public funding is essential to modernise infrastructure, expand capacity, improve jobs and renew rolling stock. The EC call, for Member States to promote a sector they had to neglect and underfund for years precisely due to EC competition pursues, is a paradox.
Last but not least, on providing public support for the purchase of zero-emission vehicles, including in corporate fleets: if it’s public support, it has to be aligned to public interest, it has to be ethical, and transparent. Commercial road transport includes a vast spectrum of undertakings, with a growing segment of business that circumvent EU rules, a real stress test for fair competition and drivers’ rights in the sector. Public, tax-payer money cannot contribute to keep in business this type of operators. And the EC cannot be seen encouraging Member States to splash public money over non-compliant business. This can only be interpreted as an endorsement of fraud and law breaching by the very legislator.
Mindful of the above, the ETF thus demands that the EC AccelerateEU initiative is accompanied by the following concrete actions:
Last but not least, we take this opportunity to call for the EU policymakers to acknowledge that rail freight is a public service of general and strategic interest, and thus equally exempt it from the state aid restrictions. Rail freight can be a significant contributor to EU transport energy efficiency but it needs public funding, recalls of dismissed staff, fair jobs and working conditions, and a sound infrastructure to run on.
As the EC points out in its AccelerateEU communication, immediate solutions – targeted, timely, temporary – should be tied to long term solutions. And further… the choices we make today determine whether we face the next crisis from a position of vulnerability or strength. That can only be achieved by an immediate implementation of the above ETF asks.