The European Commission (EC) has taken the initiative in Sweden’s $ 150.2 million plan to support the Covid-19 pandemic rail freight and passenger industry.
As part of the scheme, the fares that railway companies have to pay to use railway infrastructure in both sectors will be reduced.
This will prevent the loss of market share of rail transport and facilitate the transition from road to rail.
This arrangement will reduce rail freight and infrastructure charges payable by passenger operators between March 1, 2020 and September 30, 2021.
This scheme is expected to bring environmental benefits by reducing pollution and minimizing road congestion.
According to the EC, infrastructure price reductions are in compliance with Regulation (EU) 2020/1429.
This guideline allows and encourages EU member states to tentatively minimize, exempt, or postpone tariffs for using rail infrastructure in pandemic situations.
In addition, this scheme is in line with the European Union’s National Assistance Regulations, especially the 2008 Committee Guidelines on National Assistance for Rail Works.
Margre the Vestager, Vice President of EC Competition Policy, said:
“This measure will help maintain the competitiveness of the railway compared to other means of transportation, in line with the purpose of the European Green Deal. We will continue to work with all member states in the EU. We will ensure that national support measures are implemented as quickly and effectively as possible, in line with the regulations. ”
August of this year EC has approved $ 644.37 million (€ 550 million) German support measures to compensate for Deutsche Bahn.