Bonn’s rail deal on wrong track

Date: 10/06/1999

By Renée Cordes

GERMAN Transport Minister Franz Münterfering is trying to salvage what he can from a far-reaching package of proposals aimed at luring traffic off crowded roads and on to Europe's railways.

But after failing to reach common ground with his French counterpart Claude Gassot in bilateral talks in Berlin this week, diplomats said chances were slim that the German presidency would secure agreement on even a small part of the rail infrastructure package at next Thursday's (17 June) transport ministers' meeting.

" Objectively, I cannot see them getting even close to a deal on this occasion," said one EU diplomat. "Even those countries who want liberalisation are having trouble with some provisions."

An EU official close to the talks said this week's meeting had gone "badly", boding ill for a policy initiative which Germany had made a key priority.

Last year, Acting Transport Commissioner Neil Kinnock came forward with a package of proposals aimed at ensuring more efficient and optimal use of rail infrastructure. Under his plan, freight operators would be given greater access to rail networks and more efficient charging systems would be introduced to take into account the environmental and social costs of operating a train.

But France has objected to the package from the start, fearing that any move to liberalise the rail industry would lead to widespread unemployment as companies shed jobs to cut costs. However, French officials are reluctant to explain their objections in detail, saying only that they agree with liberalisation in principle but that current legislation is adequate.

Although the majority of other EU member states are generally in favour of further market-opening moves, diplomats say Germany's failure to overcome French resistance to the proposals early on in its presidency is threatening to derail the entire package.

Even those from countries in favour of liberalisation are pessimistic ahead of next week's meeting. "It is a very delicate package which the Germans have to get together in a short period of time," said one. "They have started too late, and for months we have heard nothing more on this. By now they should have prepared a document which set out the different views, but at present we have nothing."

The bundle of proposals also faces fierce resistance from the Community of European Railways, which represents more than 30 rail companies in about 20 European countries and this week called for greater leeway to agree rules at the national level.

A Finnish press spokesman said Helsinki would make agreement on the rail sector one of the policy priorities of its forthcoming presidency, but added that it would have to await the outcome of next week's meeting.

The EU's rail infrastructure reform package is stalled.