Towards Market Opening 1992–2007

Abstract

As the Single Market became a reality there was an increased pressure to liberalise and revitalise the railways in order for them to become competitive and facilitate the expected increase in intra-EU trade. Although the member states had adopted Directive 91/440 and individually had started to reform their national railways, they were not prepared to accept full market opening despite several attempts by the Commission throughout the 1990s. The actual market opening process started in 2001 with the adoption of the first railway package, which was followed by the second railway package in 2004 and the third railway package in 2007. By creating non-discriminating and transparent rules, the three railway packages have redefined the relationship between the state and the state railway company thereby opening the market for new entrants. The Commission’s aim is to create a level playing field and prevent the monopolistic incumbents from enjoying better conditions than their new competitors.