Abstract
The purpose of this paper is to illustrate the evolution of both schemes and levels of public support to railway sector in selected European countries. Although prior research sheds some light on this topic, more information is required to clarify national obligations under European railway liberalisation law regarding incentives toward railway undertakings. Focusing on Italy, besides the reduction of capital grants, justified by the completion of the high-speed line Turin-Milan-Naples, this paper finds an increasing support to the service operators and in the meantime a reduction of subsidies aimed at financing network operations. This shift of resources may undermine competition. The findings of this study help to fill the gap in estimating State aid to European railways.
Highlights
In today's fastpaced, knowledgeintensive environment, State aid control should more effectively target sustainable growthenhancing policies while encouraging budgetary consolidation, limiting distortions of competition and keeping the single market open
Subsidies granted to individuals or general measures open to all enterprises are not covered by this prohibition and do not constitute State aid
In 2012 The EU Commission has proposed a recast of a directive establishing a single European railway area, aiming to increase competition in the rail market by improving access to terminals and maintenance facilities and strengthening the powers of national rail regulators (Directive 2012/34/EU)
Summary
In today's fastpaced, knowledgeintensive environment, State aid control should more effectively target sustainable growthenhancing policies while encouraging budgetary consolidation, limiting distortions of competition and keeping the single market open.
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