Public passenger transport services by rail and road
European Parliament adopted on 10 May 2007 its resolution on 2nd reading on the Council Common Position with a view to the adoption of Regulation of the European Parliament and of the Council on passenger transport services by rail and by road.
The regulation is based on the “controlled competition”. The concept stands half way between complete deregulation and a closed market allowing (art 5-2) local authorities to directly award a public service contract in 4 cases:
When local authority provides the transport service itself or through a distinct entity over which it exercises control (so called internal operator).
When average value of contract is small (less than €1 mio or less than 300000 km) and in the case of a small or medium sized enterprise (no more than 23 vehicles) thresholds may reach €2mio or 600000 km.
In the event of immediate risk of disruption of services.
Where contracts concern transport by rail including suburban trains, regional trains, long distance trains (with the exception of metro and tramways).
Updated : August 8, 2007