Brussels, 4 August 2023
The European Commission has approved, under EU State aid rules, an amendment to a Dutch scheme to promote the shift of freight transport from road to rail.
The scheme was originally approved by the Commission in November 2019 (SA.55451), to support the upgrade of traffic management equipment on freight locomotives in the Netherlands, by installing the latest available version of the European Railway Traffic Management System (‘ERTMS’). The ERTMS is a single European railway management and safety control system, aimed to replace the different national systems currently in operation throughout Europe, to enhance cross-border rail interoperability and to improve the competitiveness of rail transport.
The Netherlands notified the Commission of its intention to amend the scheme by increasing its budget by €21 million, bringing the total budget to €67 million, including funding from the Connecting Europe Facility. The budget increase allows for more vehicles to be upgraded and also compensates their owners for the duration of the installation process, during which the vehicles cannot be used commercially. Aid will take the form of direct grants and the duration of the amended scheme remains unchanged, running until 31 December 2023.
The Commission assessed the amended scheme under EU State aid rules, in particular Article 93 of the Treaty on the Functioning of the European Union (‘TFEU’) on transport coordination, and the 2008 Commission Guidelines on State aid for railway undertakings. The Commission found that the Dutch scheme, as amended, remains necessary to promote the use of rail transport, which is less polluting than road transport and contributes to reducing road congestion, in line with the objectives of the EU Sustainable and Smart Mobility Strategy and of the European Green Deal. Furthermore, the Commission found that the aid will have an ‘incentive effect’ as the beneficiaries would not carry out the investment to the same extent in the absence of the public support. Finally, the Commission concluded that the scheme remains proportionate, as it is limited to the minimum necessary, and has a limited impact on competition and trade between Member States. On this basis, the Commission approved the amendment under EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.104642 in the State aid register on the Commission’s Competition website once any confidentiality issues have been resolved.
Source – EU Commission