Brussels, 26 May 2023
The European Commission has approved, under EU State aid rules, a €300 million Italian 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.
Italy intends to support the installation of the latest available version of the European Railway Traffic Management System (‘ERTMS’) on vehicles running on the Italian 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. Italy aims to implement the ERTMS on the entire national rail network by 2036. Under the scheme, the aid will take the form of direct grants to railway companies for the acquisition and installation of ERTMS on-board equipment. The scheme will run until 31 December 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 2008 Commission Guidelines on State aid for railway undertakings. The Commission found that the scheme is necessary to support interoperability and promote the use of rail 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. Furthermore, 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. Finally, the Commission concluded 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 concluded that the Italian scheme is in line with EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.102707 in the State aid case register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission