THE European Commission (EC) has adopted two new legislative instruments that replace the guidelines on state aid for passenger and freight operators dating from 2008.
The new Land and Multimodal Transport (LMT) Guidelines and the Transport Block Exemption Regulation (TBER) will enter force on March 30. The TBER will be in place until December 31 2034, while there is no end date for the LMT Guidelines.
The EC says that the two instruments establish a coherent state aid framework covering a broad range of sustainable transport modes and aid measures, while maintaining safeguards to prevent undue distortion of competition.
The LMT Guidelines set out the conditions under which state aid that has to be notified to the EC for approval may be declared compatible with the European Union (EU) internal market. The guidelines cover rail and “sustainable multimodal transport,” where at least one of the modes must be rail or inland waterways, or combine land transport with short-sea shipping.
The new guidelines clarify the regime for operating and investment support measures, such as financial aid for building or upgrading rail facilities or to launch new commercial rail services. Clarification is also provided on reimbursement for the discharge of public service obligations (PSO) in the rail freight sector.
The LMT Guidelines also introduce more flexible rules for state aid measures that directly contribute to reducing emissions and rolling out digital technology, such as aid intended to reduce external costs or promote interoperability. These provisions are designed to support modal shift, while ensuring that aid remains targeted and proportionate.
Safeguards have been introduced to support the entry and growth of new operators in sustainable land transport markets. According to the EC, they will facilitate access to finance for SMEs and new entrants to purchase rolling stock, while preserving effective competition.
TBER
The TBER complements the guidelines by exempting certain categories of aid in the rail and intermodal sectors from the prior notification requirement. Representing a major simplification of the state aid rules, according to the EC, this will enable EU member states to provide aid quickly where the necessary conditions are met, without the need for prior approval by the commission.
“With today’s adoption of the Land and Multimodal Transport Guidelines and the Transport Block Exemption Regulation, we equip member states with a modern and coherent state aid framework that supports sustainable and interoperable land transport while safeguarding fair competition,” says Teresa Ribera, executive vice-president for clean, just and competitive transition at the EC.
“These rules simplify procedures and facilitate public support for sustainable transport solutions, thus contributing to more efficient, affordable and greener European land transport.”
