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Liberalization of the European railway market

Liberalization of the European railway market

The liberalization of the European railway sector began in 1991 with the publication of Directive 91/440/EEC, which aimed to increase competition and efficiency in the industry. With Austria's accession to the European Union in 1995, this directive was transposed into national law, laying the foundation for a series of fundamental reforms in the railway sector.

Development of the European railway market

First railway package

The first railway package, introduced in 2001, formed the basis for the modern European railway system. The most important directives in this package are:

Second railway package

The Second Railway Package, adopted in 2004, focused on improving the safety and interoperability of rail transport in Europe:

Third railway package

The Third Railway Package from 2007 paved the way for the opening up of the cross-border passenger transport market and set new standards for passenger rights:

Fourth Railway Package – Political pillar

The Fourth Railway Package (2016) continued the market opening process and strengthened the regulatory capacities of Member States:

Fourth Railway Package – Technical Pillar

The technical pillar of the Fourth Railway Package aimed to harmonize technical standards and improve safety:

Strengthening competition and opening up markets

Directive 2012/34/EU, also known as the "Recast" of the First Railway Package, laid the foundations for a single European railway area. This directive consolidated and revised the previously applicable regulations in order to increase competitiveness and strengthen the powers of regulatory authorities. It was transposed into national law by June 16, 2015.

Regulation (EU) 2016/2338 entered into force on December 24, 2017, while Directive 2016/2370 had to be implemented by Member States by December 25, 2018.

Impact on the Austrian railway system

In order to ensure the organizational separation of infrastructure and transport operations, the formerly monopolistic Austrian Federal Railways (ÖBB) were converted into a holding structure.

ÖBB-Infrastruktur AG is responsible for operating the infrastructure, while ÖBB-Personenverkehr AG and Rail Cargo Austria AG operate independently in passenger and freight transport.

Liberalization at the European level led to the opening of the national rail network to third-party providers in Austria in 1998. In order to ensure fair network access for passenger and freight transport, Schienen-Control was founded in 1999 as the national regulatory authority. Since it began operations in 2000, it has served as a point of contact for railway companies and passengers.

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