In their new Budapest Declaration on the New European Competitiveness Deal on 8 November 2024, the EU’s national leaders made a dramatic call “to ensure our common economic prosperity, boost our competitiveness, making the EU the first climate-neutral continent in the world”.

ALLRAIL agrees that it is “imperative that we urgently close the innovation and productivity gap, both with our global competitors and within the EU”.

EU passenger rail can be the envy of the world – if we get the competitive structure of the industry right.

EU leaders are correct to state that efforts must be intensified to “ensure a fully functioning Single Market and unlock its full potential as a key driver for innovation (…) growth, connectivity, and economic resilience”.

Passenger rail will flourish if the Single European Railway Area is allowed to happen. Wherever market opening has been allowed to take so far, then (1) passenger numbers have grown, (2) the rail sector got bigger, (3) carbon emissions have decreased, and (4) there has been more private investment.

But unfortunately, most EU national passenger rail markets remain closed, with competitive tendering only set to be introduced in 2034.

However, when faced with geopolitical realities, why should the EU Single Market for Rail not be “fully functioning” much sooner?

The way to do it is to lower barriers to entry and ensure that innovation is not controlled by a group of larger, protected monopolies.

New entrants must have the incentive to optimise efficiency and serve those who need it most – the passengers.

ALLRAIL President Dr. Erich Forster summarises: “We do not need large, taxpayer-subsidised European ‘Champions’.

Instead, EU rail companies will only be able to compete globally if there is a competitive market within the EU”.