Brussels, 8 October 2024
The European Commission has approved, under EU State aid rules, a €112 million Polish scheme to remove technical barriers to rail interoperability. The aim of the scheme is to promote the shift of freight and passenger transport from road to rail and to improve the security and efficiency of rail transport. The scheme will be fully funded through the Recovery and Resilience Facility (‘RRF’), following the Commission’s positive assessment of Poland’s Recovery and Resilience Plan and its adoption by the Council.
Poland intends to support the installation of the latest version of the European Railway Traffic Management System (‘ERTMS’) on vehicles running on the Polish rail network. 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. Under the scheme, the aid will take the form of direct grants to railway companies and owners of rolling stock for the acquisition and installation of ERTMS on-board equipment. The scheme will run until 30 June 2026.
The Commission assessed the measure under EU State aid rules, in particular Article 93 of the Treaty on the Functioning of the European Union on transport coordination and the Guidelines on State aid for railway undertakings (‘Railway Guidelines’). The Commission found that the scheme is necessary to coordinate transport and promote the use of intermodal transport, which is less polluting than road transport and reduces road congestion in line with the objectives of the EU Sustainable and Smart Mobility Strategy and the European Green Deal. In addition, the Commission found that the aid will have an ‘incentive effect’ as the beneficiaries would not carry out the investments in the absence of the public support. Furthermore, the Commission found that the scheme is 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 Polish scheme under EU State aid rules.
The non-confidential version of the decision will be made available under the number SA.114259 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission