Bulletinof the European Communities

Supplement 3/93

The future development of the commontransport policyA global approach to the construction of aCommunity framework for sustainable mobility

Communication from the Commission

Document drawn up on the basis of COM(92) 494 final

December 2 , 1992

White Paper

EUROPEAN COMMUNITIES

Commission

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities , 1993

ISBN 92-826-5911-

~ ECSC-EEC-EAEC, Brussels. Luxembourg, 1993

Reproduction is authorized, except for commercial purposes , provided the source isacknowledged.

Printed in Germany

Contents

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I - Introduction: 1992 as a tuming point for the CIP

II The transport economy: trends and tendencies

General

Modes

Investment and pressure on capacity

Broader environmental and other pressures

Prospects, in particular for the environment

The transpol1 economy

Objectives and scope of the common transport policy: sustainable mobility for theCommunity as a whole

Objectives on the common transpol1 policy

Global approach

IV Issues and possible answers

The completion, reinforcement and proper functioning of the internal market

General

Application of the 1992 measures

Generally applicable Treaty rules

Further legislative development of the internal market

Information and analysis of the functioning of the market

From the elimination of barriers towards an effective integrated system

Imbalances and inefficiencies

Modal disequilibria

Regional dimension

Environment

The challenge

Transport demand, intermodal competition and complementarity

Capacity constraints and possible responses

Costs charges and subsidies

Complementary measures

System and network development

Introduction

Research and development

Trans-European network development

v -

Annexes

Environmental protection and conservation: improving the environmentalperformance ofmmsport

Introduction

Main enviromental problems

Reactions to the Green Paper

The Community' s response: environment protection as an integrated theme ofthe CTP

Transport safety for the protection of user and non.useralike

General

Road safety: the current situation

Maritime safety: the current situation

Civil aviation: safe but perfectible

Transport of dangerous goods by all modes

Social policy and transport

Community social policy and .thesocial dimension of the CTP: complementaryinstruments

Principal areas of activity

Transport of people with reduced mobility

Protection and promotion of employment

Strengthening the external dimension of the CTP

The external dimension: progress to date

Current problems

Community powers in the .external field

New approach: priorities

A global approach .to the transport services and. systems of Europe

International organizations and multilateral conventions

Community policies and priorities

The action programme

The economic and regulatory framework

Technical harmonization

Research and development

Trans-European networks

Safety for the protection of the user and non-user alike

Environment

Social protection

External relations

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Introduction: 1992 as a turning point for the CTP

1. The end of 1992 will mark the beginning of anew departure for the Community's common trans-port policy (CTP).

2. For many years progress towards the realizationof the CTP was slow, especially when measuredagainst the importance of transport in the Com-munity economy.

3. The Court of Justice had to intervene several

times on basic questions of interpretation of thetransport provisions of the Treaty of Rome in orderto make progress possible. This process reached itsclimax in 1985 when the Court declared that theinland transport of goods and passengers should beopen to all Community fl1111s, without discriminationas to nationality or place of establishment.

4. The 1985 landmark judgment of the Court coin-cided with the Commission s White Paper on thecompletion of the internal market now entering itsfinal phase in the run-up to 1993. The Commission

then placed transport in the forefront of the movestowards the completion of the internal market recog-nizing that the abolition of restrictions on the provi-sion of transport services was essential if the elimina-tion of administrative, technical, fiscal, customs andother barriers to trade were to realize their full poten-tiaL

5. The Single European Act that followed acceler-ated the decision-making process by introducingmajority voting on questions of shipping and airtransport policy.

6. Since then, the CTP has developed rapidly,encompassing a wide range of measures, actions andinitiatives aiming at bringing about the single marketfor transport services. The end-result of this processnow emerging as a tangible reality throughout theCommunity, is the creation of a new, more open mar-ket, free from unnecessary red tape and quantitativerestrictions, but at the same time maintaining suchguarantees as are necessary to ensure fair competi-

tion. Other important components of this emergingreality are improved competitiveness, financial per-formance and efficiency of transport undertakingsand improvements in the functioning and quality oftransport systems, including safety, realibility and

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passenger comfort. Measures have also been takenfor the protection of the environment, while a begin-ning has been made concerning transport-relatedresearch and development and transport infrastruc-ture. Transport relations with third countries have

also begun to be dealt with at Community level.

7. The implementation of the Treaty on EuropeanUnion agreed at Maastricht will at once confl1111 and

give a new impulsion to the evolution of the CTP.Measures to improve transport safety receive for theflI'St time explicit recognition. The provisions ontrans-European networks and economic and socialcohesion provide a new basis for the Community tocontribute to the establishment and development oftransport infrastructure. The new title on industryunderlines the need for conditions that will ensurethe competitiveness of Community enterprises. At thesame time the Union Treaty emphasizes that inaccordance with the principle of subsidiarity, theCTP must consist of actions which cannot be realizedadequately by the Member States individually andtherefore, by reason of their dimensions or effects, arebetter realized by the Community.

8. Therefore, 1992 marks an important turning pointin the evolution of the CTP from a policy which hasaimed essentially at the completion of the internalmarket through the elimination of artificial regulatorybarriers to the provision of services, towards a morecomprehensive policy designed to ensure the properfunctioning of the Community's transport systemson the basis of an internal market in which anyremaining restrictions or distortions should be elimi-nated as rapidly as possible, while taking intoaccount the new challenges likely to confront trans-port policy in the post-1992 period. Among thosechallenges one of the most important is the integra-tion of environmental objectives as now laid down inthe Union Treaty. The identification of the new chal-lenges taken as a whole, and of the extent to whichthey require a Community response, constitutes thenecessary fIrSt step in the development of the Com-munity s CTP up to the .end of the decade andbeyond into the new century.

9. The purpose of this paper is to set out a globalapproach to these issues that will enable those con-cerned and, in particular, the Community's politicalinstitutions to consider them as a whole before parti-cular initiatives are launched, starting in 1993.

II The transport economy: trends and tendencies

General

10. Transport is a growth industry. Its developmentdepends on the development of the economy as awhole. Despite regional variations and differentdevelopments in the various transport modes, trans-port demand has experienced virtually uninterrupted

growth since the 1970s. In general, transport demandfor both goods and passengers, runs in parallel to

growth in GDP, although there are indications thatlower GDP growth rates may result in disproportion.ately smaller, and higher GDP growth rates in dispro-portionately higher, growth of transport activity.Since 1970 the annual economic growth in the Com-munity has averaged 2.6% in real terms. For the sameperiod the growth rates of transport services averaged2.3% for goods and 3.1 % for passengers.

11. The following main factors have generally beenidentified as contributing to this growth:

(i) changes in the structure of manufacturing industryhave resulted in locational shifts from urban to newindustrial sites and contributed towards a dispersal ofeconomic activities; these changes have been ampli-fied by the continuing process of economic integra-tion within the Community;

(ii) changes in the production methods of manufac-turing industry have led more and more towardsstock-reducing, flexible, diverse, rapid and tailoredtransport with reductions in shipment size andincreases in shipment frequency;

(iii) the rising share of the service industry and itsmulti-site businesses have caused rapidly growingprofessional mobility over short, medium and longdistances;

(iv) the increase of net disposable income and demo-

graphic changes have led to higher rates of car own-ership and increased holiday and leisure-time travel-ling.

12. This general pattern of growing demand is likelyto persist if economic growth is maintained. Whilesimple extrapolation of past trends should not betreated as a forecast of what will inevitably happenGraph I shows, if current trends continue, the pres-sures which the Community' s transport systems mayhave to accommodate. It should be noted that the

trend for goods understates the probable growth intraffic since average shipment size is still decreasingwhile shipment frequency is increasing.

Modes

13. However, transport growth in the Communityfor both goods and passengers has not been spreadevenly between modes.

14. As regards goods, as shown in Graph2 andTable 1 (Annex I), transport activity 1 has increased

by well in excess of 50% in the last 20 years, roadtransport accounting for most of the increase:

(i) transport by inland navigation has slightlyincreased its transport volume in absolute terms butits relative share has decreased by a third to 9%;

(ii) transport by rail has contracted by 15% in abso-

lute terms and decreased in relative terms from 28 to15%;

(iii) transport by pipeline has slightly grown in abso.lute terms but is relative share has decreased to 6%;

(iv) with substantial annual growth rates, transportby road has more than doubled in absolute terms andnow accounts for about 70% of all transport activity.

Maritime transport has always been a major mode interms of tonnage for longer, mainly cross-borderroutes. After volume growth of about 35% between

1975 and 1985 the volume of goods transported hassince undergone little change in absolute terms. Mari-time transport is of particular importance for tradebetween Member States in .the Community where atleast 30% of all goods are transported by sea, but ismuch less significant for domestic transport within aMember State with only an estimated 2 to 3% of allgoods transported by sea, although generally oversubstantially longer distances.

I In tonne-kilometre$ (tkm)exc1uding maritime transportand after adjustments for the accession of Spain and Por-tugal. Maritime transport does not lend itself to the con-ventional measure of transport activity, namely tkm, butis normally measured only in terms of total tonnage.

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Graph 1 Trends in the transport of goods and passengers 1

250

200

150

100

- - - -....: =-" ..... "-: =-= - - :...;:;.-::=-=:.....: =-..:: :..: =-.: :...:: .:...: :...: :.; :.-

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i i J ~ f ~Ii I ~ i ~ ~ I I ~ ~II ~

- - - - - - - - - - - - - ~ - - - -- -

- ~ - - ~ - - - - - N

Index: passengerkilometres

~ ~ ~

Index: goodstonne-kilometres

- - - - - Index: EUR 12 GDP

I Projected GNP growth rate until 2000 of 2.7% p.

Graph 2 EC freight transport(thousand million torme-kilometres)

200

1200

1000

800

600

400

1970 1980 1985 1990

IillI Road Rail iii Inland waterways Pipelines

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Thousands

Graph 3 ECpassenger transport(thousand million passenger-kilometres)

1970 1980

1111 Private cars Rail

15. As regards passengers, as shown in Graph 3 andTable 2 (Annex I), transport activity 1 has increased

by more than 85% in the last 20 years, most of theincrease being attributable to use of the private car:

(i) although transport by rail has increased by about25 % in absolute terms, its relative share has beenreduced from about 10% to between 6 and 7% of allpassenger transport;

(ii) equally, transport by bus has increased in abso-lute terms by about 45% but its relative sharedecreased by 3% to under 9%;

(iii) air transport although now representing onlyabout 6% has experienced the biggest growth ratesand more than quadrupled in absolute terms over theperiod;

(iv) the bulk of the increase of total passenger trans-

port is due to the use of the private car which hasdoubled in absolute terms. Although it was already

1985 1990

Buses and coaches Air

the predominant mode in 1970 with 76%, its sharehas further increased to about 79%.

16. A more detailed analysis 2 shows that transportof goods by road has always taken place principallyover short distances: 66% of all goods are transportedwithin 50 kIn and a further 20 % within distances ofbetween 50 and 150 kIn, leaving only 14% to longerdistances. Although comprehensive data for passen-ger transport by private. cars are lacking, indicationsfrom two major Member States 3 point to the pre-

dominance of short distance transport. It was foundin one country that half the car passenger journeys

were over a distance of less than five kIn and only

I In passenger-kilometres after adjustments for the acces-sion of Spain and Portugal.Based on: Eurostat, Carriage of goods Road, 1989.

OEST, Synthese moo 1992, Paris.Socialdata GmbH, Munich.

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every fourth over more than 10km. Data from theother country show that a private car is on averageonly used for 2.7 journeys per year over a distance ofmore than 200 km and that half the private cars nevertravel that distance. Transport of goods by rail takesplace primarily over medium distances. Althoughdetailed information is only available on national railtraffic in the Member States, it is estimated that justunder half of all national and international rail trans-port takes place over distances of more than 150 kmand about 15% over distances in excess of 500 kID.

The characteristics of transport by inland waterwaysresult in the majority of goods in the Communitybeing transported over medium distances.

17. Although the factors affecting growth of trans-

port activities are complex, it would appear likelythat in the absence of new policy measures growthwill continue to concentrate on road transport ofboth goods and passengers. Air transport of passen-gers is generally expected to continue to grow at ratesabove the rate of growth in GDP mainly because ofthe low base, increasing commercial and industriallinks between different parts of the Community, andchanging patterns in holiday travel resulting fromhigher disposable income. However, under certainconditions, including the application of particulartransport policy measures, patterns may develop dif.ferently. For example, recent figures from the Nether-lands show a stabilization in car use and a steadyincrease in rail. passenger traffic. I To what extentsuch developments may modify the general trend isat present unclear.

Investment and pressureon capacity

18. While transport demand has grown, investmentin inland transport infrastructure in Europe 2expressed as a percentage of gross domestic productactually declined between 1975 and 1980 from 1.5 to1.2%, but this decline was halted in the early 1980s

and the relative investment share remained at about1% throughout the decade. 3

19. Although there are fluctuations on a year-to-year basis, the relative importance of investments inall modes 4 in the years 1980 and 1989 shows that:

(i) road accounted for just over 66% of all invest-ments with a small downward trend;

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(ii) rail's share has slightly increased to about 23%;

(iii) the shares for both ports and inland waterwayshave decreased from 5 to 3.5% and from 2 to 1.5%

respectively;

(iv) airports have benefited most from investmentsincreasing their share substantially from 2.9 to 5.6%.

Growth in transport demand and relative decline ininland transport infrastructure investment haveincreased pressure in particular on the road and railnetworks' capacity which have reached saturation atmany points. Even substantial investments in airportshave proved insufficient, resulting, in combinationwith unsatisfactory air traffic control mechanisms, inpressure on existing capacity.

Broader environmental

and other pressures

20. The growth in transport activity not only leadsto pressures on capacity, but raises broader environ-mental issues. The effects on transport of the econo-mic and technological developments over the lasttwo decades have exacerbated the areas of conflictbetween transport and the environment. These areasof conflict take the form of energy consumptionoperational pollution, land-intrusion, congestion andrisks inherent to the carriage of dangerous goods.

21. Since the beginning of the 1970s transport has

become a major consumer of non-renewable energy.Over the last two decades the energy consumption ofroad transport has increased by 103%, which repre-sents an average annual growth of 3.8%, whereas

energy consumption for air transport increased byapproximately 93%, an average increase of 3.6% perannum.

Auto's in Neder/and Centraal Bureau van de Statistiek,September 1992.

Comprising new construction, extension, reconstructionand renewal.

Source: ECMT Investment trends in transport infra-

structure in ECMT countries in the 1980s - ECMT/CM(91) 9, Chapter 4.Except pipelines.

22. The available data for atmospheric pollution

caused by road transport show a substantial increaseover the last two decades for a number of pollutants.Most important of these is the emission of carbondioxide (CO~, the main man-made ' greenhouse gasby motor vehicles, which increased by 76% between1971 and 1989, an average annual increase of3.2%.

(!Yo)

Means of transport8bare in total CO2

emissionsby transport sector

1. Road: totalofwhich:

Private carGoods vehiclesBuses + coaches

2. Aviation

3. Railways: totalof which:

PassengersGoods

4. Inland waterways

5. Othertransport

79.

55.

22.1.6

10.

l.l

4.3

StJUTCJ!: TNO Consultant TNO policy Te$earch. Possible Communitymeasures aiming at limiting CO2 emi$sionsin the transportation sector'Delft, August 1991, pp. 6- 7.

Other pollutants include:

(i) nitrogen oxide (NO,.), which contributes indirectlyto the 'greenhouse effect' and directly to acid rainand the build-up of tropospheric ozone, whichincreased by 68%;

(ii) particulates detrimental to human health, whichincreased by 106%;

(iii) hydrocarbon (HC) emissions, which contributeto the 'greenhouse effect' and the build-up of tropos-pheric ozone and may have potential carcinogeniceffects, which increased by 41%.

23. Trends indicate that, in a 'business as usual'scenario, energy consumption and CO2 output by thetransport sector are likely to increase by 24.

between 1990 and 2000. I

24. Transport also causes water and soil pollutionand is a source of noise and vibrations.

25. Transport infrastructure causes land-intrusionwith permanent and often irreversible impact on thelandscape and the urban environment.

26. Transport is also increasingly the cause congestion. Between 1970 and 1989 the volume of

road traffic (in vehicle-kilometres) doubled both for

private cars and freight vehicles (average annual

growth of about 3.7%). One of the main contributoryfactors for this growth was the development of carownership in the Community. On the basis of trendssince 1975 the number of cars in the Community isexpected to increase between 25 and 30% during theperiod 1990 to 2010.

27. In addition to the effects identified above, trans-port activity i$ also the cause of physical damage topersons and property, including fatal accidents. Theresulting economic costs are impossible to quantifybut despite progress made in the prevention of acci.dents in recent years, they remain a substantial bur-den, financial and otherwise, to be borne by societyas a whole.

Prospects, in particularfor the environment

28. As to the future, forecasts of growth in transportdemand show that in a ' business as usual' scenariowith a reasonably favourable economic climate theexpansion of the road sector is likely to be buoyant.Under these conditions, a near doubling of roadtransport demand for both passengers and freightseems likely. Although technological progress andmeasures already taken will mitigate the environmen-tal impact, in the absence of additional policyactions, significant worsening of the situation is stilllikely as regards pollution, notably CO2 emissionscongestion and accidents. Even if lower economic

growth slows the rate of deterioration for a time, therisk of the development of the transport sector beingunsustainable in the medium to long term due to itsbroad environmental impact remains real.

The transport economy

29. While the scale and growth of transport activitypose problems, they also underline the importance ofthis sector to the continued health of the Com-munity' s economy.

30. With only marginal changes since the beginningof the 1980s, the transport service industrY has repre-

Energy in Europe, A view to the future', Commission ofthe European Communities, September 1992.

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Graph 4 Cars per 000 inhabitants

500

400

300

200

-'-'-- ..-.. .. . . . . .. .. .. .. . . .. . .. .. .. .... . . . . . .. .. .. . . . . .. .. ... . . . . .. ..

100

. . . .. .. .. . . .

1970 1975 1980

sented about 4% of gross domestic product. 1 If own

account and private transport are included, the sharerises to an estimated 7 to 8%. Employment figuresover the last decade reflect the changes in the relativeimportance of transport modes with only insubstan-tial changes in the aggregate number of salariedemployees representing a percentage of between 4and 5% of the total salaried workforce. 2 In 1991 , atotal of about 5.6 million persons were employed intransport, distributed between the sectors as shownbelow.

Transport seCtor

Total number of jobs ineach seCtor (x I 000) in

Community countries

1. Railways

2. Inland waterways3. Road and other inland

transport

4. Maritime

5. Aviation

6. Associated activities

Total

897.

24.

2509.

217.3

349.

I 569.

5 567.

Source: Estimate based on Community labour force survey, 1991.

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1985 1989

31. The transport equipment industrY 3 is one of theprincipal industrial sectors in the Community, interms of turnover second only to the food industrY.

Its most important sector is the motor vehicle indus-trY, including parts and accessories, which accountsfor over three quarters of the sector s output in 1989the aerospace industrY being second with around14%. 4 Following the second oil crisis at the begin-

ning of the 1980s, little growth was registered until1985. However, from 1985 onwards until recently,

substantially improved growth rates, in particular inthe motor vehicle and aeronautical industries, wereamong the main catalysts for the continued growth ofthe entire Community economy, both through own-growth and because the transport equipment industrYis one of the most important customers for a numberof other industrial sectors, the most important being

Eurostat, Transport, annual statistics 1989, p. J; some esti-

mates are higher.Eurostat, Basic statistics, 1991 , p. 120.

Motor vehicles (including parts and accessories), ship-

building, railway rolling stock, moped and motorcyclesaerospace equipment.Panorama of EC industries 1991-92, Chapter 13. Theshare of the other sectors being: shipbuilding 4. , railand tram 1.6%, cycles and motorcycles 1.3%, other 2%.

the iron, steel and metal industries, mechanical engi-neering, and the electrical, plastic and chemicalindustries. Technical developments in all sectors ofthe transport equipment industry have transformed itinto a pace-setting industry for technological innova-tion from which a wide range of other industries ben-efit.

32. The transport equipment industry employs anestimated 2.6 million people I representing about6.5% of total Community industrial employment. It isestimated that one in ten jobs in the Communitydepends directly or indirectly, from third-tier supplierto servicing and repair shops, on the motor vehiclesector.

33. Apart from being a substantial industry in itsown right, the transport equipment industry is of vital

importance for the proper functioning of other manu-facturing and service industries which depend on theavailability of efficient state-of-the-art transportequipment.

34. Finally, the transport service industry is essentialfor the integration of the Community, its economicperformance and the mobility of its citizens. Theproblems of the more peripheral regions show thatgeographic disadvantages may be exacerbated byinsufficient transport resulting in a lack of competi-tiveness and difficult market contacts of the econOm-ies concerned. Should the Community's transportsystem cease to function adequately under pressures

of growth, it could not fail to have a serious negativeimpact on the Community as a whole.

1989 figure; Panorama of EC industry, statistical supple-ment 1992, Chapter 13.

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III Objectives and scope of the common trans~ortpolicy: sustainable mobility for the Communityas a whole

Objectives of the commontransport policy

35. According to Article 74 of the EEC Treaty, thefundamental objectives of the CTP are those of theTreaty itself. These are set out in Article ~ and, fol-

lowing the Maastricht agreement, conSist of the

promotion throughout the Community of a .harm

?~-

ious and balanced development of economlcactlVl-ties, sustainable and non-inflationary growth respect-ing the environment, a high degree of convergence ofeconomic performance, a high level of employmentand of social protection, the raising of the standard ofliving and quality of life and economic and socialcohesion and solidarity among Member States.Moreover, as held by the European Court of Justicein Case 167/73 1 Article 74, by referring expressly toArticles 2 and 3, preserves the application of Treaty' s general rules to the transport sector except mso far as it specifically provides otherwise. The spe-cific provisions on transport, far from setting as~defundamental Treaty rules such as those concernIngthe establishment of a common market, have as theirobject to give effect to and complement them bycommon actions.

36. The development of the CTP has also to res-pond to wider issues of depletion of natural resourcesand environmental degradation at the global level.Even before the Rio Summit the Community had inthe Dublin declaration of June 1990 committed itselfto the application of the principles of sustainable

development. This commitment has been developedby the Commission in its fifth environmental actionprogramme which has identified the importa~ce ofthe integration of environment and reso~ces ISSU~S

into sectoral policies. The transport sector IS of part cular importance in this respect. For example, the

greenhouse effect' linked directly . to energy use andCO2 emissions is without question of paramountimportance. The Community has set itself clear gets for CO2 stabilization and the trans~ort sector IS. a

key actor in the efforts necessary to achieve ~he stab~l-

ization target of 1990 levels by 2000. Fmally, . maccordance with the Maastricht Agreement, Article13Or of the Treaty will oblige the Community to inte-

grate environment protection requirements into the

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definition and implementation of .other Communitypolicies including transport.

37. In addition, the formulation and implementa-tion of the CTP will have to .take proper account, inaccordance with Article BOb of the MaastrichtAgreement, of the objective ~f stren~en!ng t~eCommunity s economic and soCIal cohesion, m parti-cular by reducing disparities between the regions andthe backwardness of those least favoured. The linkbetween the improvement of transport infrastructureand the accessibility of the regions should be seen inthe light of its consequences on the planning of r~si-

dential areas and centres of employment, productiondistricts and areas of consumption as well as on thevolume of traffic and its organization. Therefore, theprovision of transport infrastructure, including pro-jects within assisted areas, and the development oftrans-European networks should be carefully plan~edin order to remove imbalances and secure effectivemobility.

38. Accordingly, in the transport field, these objec-tives require the development of policies to ensurethat the transport sector can take full advantage ofthe Treaty s provisions on a single market and thatthe different geographical components of the Com-munity benefit from transport systems that will prvide services efficiently, safely, under the best POSSI-ble social conditions and fully respecting the objec-tives of the Community' s environment policy.

39. Transport efficiency requires that, on the basisof a properly functioning internal market, thedevelopment of trans-European transport net,?,orks

and the possibilities offered by the best avaIlabletechnologies, citizens and enterprises should haveaccess to means of mobility corresponding as closelyas possible in quality and performance to their needsand expectations. Access to these facilities should beat a reasonable cost consistent with their long-termmaintenance and development. At the same time

transport services must be safe from the point of viewboth of the user and others who are placed at risk.

I Judgment of the Court of Justice of 4April 1974: Case167/73 (1974) ECR 367.

They must also be provided under conditioJls whichpromote the Community s social cohesion. Finally,transport systems must contribute to the protection ofthe environment and, in particular, to the solution ofmajor environmental threats such as the ' greenhouseeffect' and to the achievement of sustainabledevelopment. The realization of all these objectivesimplies that, as a general rule, all transport users

should pay the full costs internal and external of the transport services that they consume, even ifthese .costs are in some (:3Sespaid by society to assistthose in need. In particular, internalization of exter-nal costs should bea major element of a transportpolicy integrating the protection of the environment.

Global approach

40. This approach, which can be summarized as thepursuit of sustainable mobility, calls then for.a globalprogramme including:

(a) the continued reinforcement and proper function-ing of the internal market facilitating the free move-ment of goods and persons throughout the Com-munity;

(b) a transition from the elimination of artificialregulatory obstacles towards the adoption of the rightbalance of policies favouring the development ofcoherent, integrated transport systems for the Com.munity as a whole using the best available technol-ogy;

(c) the strengthening of economic and social cohe-sion by the contribution which the development oftransport infrastructure can make to reducing dispari-ties between the regions and linking island, land-locked and peripheral regions with the central regionso(the Community;

(d) measures to ensure that the development of

transport systems contributes to a sustainable patternof development by respecting the environment andin particular, by contributing to the solution of majorenvironmental problems such as the limitation CO2;

(e) actions to promote safety;

(t) measures in the social field;

(g) the development of appropriate relations withthird countries, where nece~sary giving priority tothose for which the transport of goods or persons isimportant for the Community as a whole.

41. The adoptioll of such a global programmerequires an analysis of issues arising in the transportsector in Qrder to . identify those on which a Com-munity initiative appears necessary, bearing in mindthe subsidiarity principle. What actions should beproposed at Community level, because only theCommunity can resolve the problem or because it isbest placed to do so? The following chapters seek to

answer this question in relation to each of the mainareas of activity forming part of the global pro-gramme in accordance with the undermentioned

principles flowing from the provisions of the Maas-tricht Agreement.'

42. As regards the preparation of new Communityactions in the transport field, a distinction must bemade between those matters for which the Com-munity has an exclusive power and those for which itshares power with the Member States.

43. In relation to the areas of exclusive power, nota-bly the realization and functioning of the internalmarket in transport services and transport relationswith third countries which are increasingly important,the Community is obliged to realize the objectivesassigned to it and the necessity for action is estab-

lished by the Treaty itself. Nevertheless, even in theseareas, in accordance with the principle ofproportion-ality, Community actions should not go beyond whatis necessary to achieve Treaty objectives and themanner in which the Community intervenes must beevaluated from this point of view.

44. In areas of shared power, such as transport net-works and certain aspects of safety, it is fIrSt neces-sary to establish the necessity for Community actionbearing in mind the context of the action within theTreaty system. In the transport field, many possibleinitiatives will be ancillary to the harmonious func-tioning of the internal market in transport services

the COmmon policy on transport, the obligation tointegrate environment protection and commonactions on economic and social cohesion. In suchareas, the political commitment to Community actionis very strong. In addition, criteria such as the trans-frontier dimensions of a transport problem, the diffi-culty for Member States to address the issue indivi-dually together with the risk of competitive distor-tions if they do, and the added value at limited costof the Community complementing actions atnational or regional level should be applied to distin-

I For a fuller explanation reference can be made to ' Thesubsidiarity principle , SEC(92) 1990 final, 27 October1992.

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guish those issues on which Community action is jus-tified. Again, it will also be necessary, as a secondstage, to evaluate the manner in which the Com-munity should intervene in accordance with the prin-ciple of proportionality. The use of relatively flexibleinstruments such as network guidelines and theiraccompanying measures, as well as the continueddevelopment of effective approaches to enable Com-munity objectives to be realized through internationalorganizations and instruments, should prove particu-larly useful in this regard.

45. As to the management and control of Com-munity actions, the goal will be, as it has been in the

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past: the maximum decentralization compatible withthe realization of Community objectives and obliga.tions. The use of the directive and network guide-lines, by their nature, will facilitate this task. In thefield of controls, other than controls for which theCommission has its own responsibility such as thoseconnected with the Community budget or the imple-mentation of Community law by Member States, theemphasis will be on action by national authorities,the Community's involvement . being designed increase the effectiveness of those controls wherenecessary.

IV

- .

Issues and possible answers

Thecompl.etion , reinforcementand proper functioning of theinternal market

General

46. The adoption of legislation necessary for theestablishment of an internal market in the transportsector, in accordance with the Single European Act,is now close to being realized. A legislative frame-work will be in place which will provide the legalbasis, in particular, for the provision of transport ser-vices without discrimination based on nationality orplace of establishment. As the general rules on rightof establishment also apply to transport, and as re-strictions on capacity have been largely eliminated orlimited to a safeguard role, transport undertakings

should accordingly be able to take full advantage ofthe internal market and operate in the manner thatseems to them most effective. They win do soon thebasis of conditions of competition which have beenharmonized in a number of important areas suchsafety requirements, technical specifications and pro-fessional standards. In addition, movements by per-sons and undertakings on their own account, whetherof goods or persons have also been freed from manyrestrictions. They will also have been facilitated bysuch initiatives as common rules on insurance anddriving licences and, in the interests of improved .saf-ety, made subject to harmonized standards, for exam-ple, on the wearing of seat belts.

47. The completion, reinforcement and proper func-tioning of the single market for transport services willundoubtedly continue to constitue one of the maincomponents of the CTP.

Application of the 1992 measures

48. FIrst, action will be necessary to ensure that themeasures adopted in the context of the 1992 pro-

gramme for the realisation of the internal market areproperly applied. The magnitude of this task shouldnot be underestimated. The legislation contains prov-isions the application of which requires more than

the simple deletion of restrictions in national regula-tions.

49. In the field of inland transport, for example,situations may develop in which the crisis mechan-isms envisaged for carriage of goods and persons byroad may need to be employed.

50. In the railway field, rights of access to infra.structure granted to international railway groupingsand for the purposes of international.combined trans-port require the groupings and enterprises concernedto conclude non-discriminatory agreements on thedifferent administrative, technical and financial mat-ters needed to ensure adequate and safe managementof the traffic concerned. 1 The conclusion of suchagreements may raise issues of some complexity andsensitivity. For this reason, it is necessary for theCommission to be in contact with those directly con-cerned to see whether it can assist in finding worka-ble solutions as rapidly as possible, a process alreadybegun. The Commission in the light of those discus-sions, which have already begun, will decide whetherand what form of further action is required.

51. In the field of civil aviation, the Commissionhas a number of responsibilities concerning the exe-cution of the third liberalization package. It may haveto pronounce on the correct interpretation of theregulation on licensing of air carriers where an airoperator s certificate has been refused by a nationallicensing authority. 2 It may have to decide whetherdecisions taken by national authorities restrictingexercise of traffic rights for reasons of distribution oftraffic between airports within an airport system oron grounds that serious congestion or environmentalproblems exist are justified. 3 FInally, the Commis-sion may have to decide on complaints concerning

excessively high air fares or a downward spiral of farelevels causing widespread losses. 4 In this connectionit will publish in an appropriate form the methods

Article 10 of Council Directive 91/440/EEC of 29 July1991 (OJ L 237, 24. 8. 1991).

Article 13 of Council Regulation (EEC) No 2407/92 of23 July 1992 (OJ L 240, 24. 8. 1992).

Articles 8 and 9 of Council of Regulation (EEC) No2408/92 of 23 July 1992 (OJ L24O, 24. 8. 1992).

Article 7 of Council Regulation (EEC) No 2409/92 of 23July 1992 (OJ L 240, 24. 8. 1992).

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which it intends to use to evaluate whether air faresare too high or too low. This will permit those inter-ested better to predict how the complaint mechanismwill work and so reduce the number of unjustifiedcomplaints.

52. Besides these specific tasks, the proper imple-mentation of Community legislation will have to bechecked for all modes and, if necessary, action takento ensure the conformity of national laws, regulationsand administrative procedures. In addition, to avoidthe expected effects of the 1992 measures beingundermined, work will have to be done to ensure thatfacilities such as port, airport and container terminalscan be used as effectively as possible under non-dis-criminatory access and usage conditions.

53. After all, it makes little sense to spend manyyears adopting Community legislation if, onceadopted, it is not taken seriously and effectivelyimplemented. It should be noted, however, that in thetransport field this activity concerns, for the most

part, ensuring the conformity of national regulatorysystems with Community law and objectives and notinterventions in cases involving particular transportenterprises or transactions. These are primarily theresponsibility of national and local authorities. Thepossible interventions in the civil aviation field onlicensing, routes and fares are necessary exceptionsnot the rule. They have been considered necessary bythe Community legislator in order to ensure that cer-tain key decisions can be subject to independent veri-fication.

Generally applicable Treaty rules

54. The proper functioning of the internal market inthe transport sector is guaranteed not only by theprovisions of the transport chapter of the Treaty butalso by its generally applicable rules, particularlythose on competition. I The transport sector is indeedlikely to pose particular problems in this regard in theyears immediately ahead.

55. First, the economic and technical characteristicsof transport activities are such that issues concerningthe application of competition rules are bound toarise. Transport systems based on the exploitation ofsingle networks tend to monopoly or oligopoly. Inte-

grated systems, including in particular intermodal

transport, may require cooperation by agreementbetween different economic operators. Service obliga-tions in the public interest tend to involve the grant-

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ing of correlative special or exclusive rights. Finally,transport entities frequently rely on public finance,including subsidies some of which may not be com-patible with the functioning of the internal market.

All of these tendencies mean that the application ofcompetition rules in the transport field is of funda-mental importance for the efficiency of the sectorand, at the same time, must continue to take intoaccount its specific characteristics.

56. Second, in the period immediately ahead, trans-port markets in the Community will be progressivelyopening up to greater competition between operatorsnot only as regards services between Member Statesbut also within their formerly national markets, manyof which have been traditionally protected. This pro-cess of liberalization is certain to provoke importantchanges as both operators and policy-makers seek to

adapt to the scale and challenges of a genuinely sin-

gle market. More dynamic operators can be expectedto seek economies of scale and scope both to defendtheir present market position and to exploit the newopportunities that are opening up. Productivity gainsthrough technical modernization will also be soughtsome of these changes being associated also with theindustry s response to environmental and safetyrequirements.

57. Accordingly, it is to be anticipated that thetransport sector will undergo important structuralchanges involving both the arrival of new entrants oncertain markets and, at the same time, new relation-ships between transport enterprises as well as concen-trations of different types. New investments will bemade both in the public and private sectors. The rel-evant authorities at national and regional levels canbe expected to assist this process of adaptationthrough the different mea.ns at their disposal, includ-ing financial measures, some of which will fall withinthe scope of the Treaty's provisions on aids. The

Community s policies on concentrations, agreementsand concerted actions between enterprises willaccordingly have a vital role to play. The same is trueso far as State aids and special and exclusive rightsare concerned. The Community must ensure that theprocess of adaptation to the single market takes placeunder conditions which avoid market distortionsallow participants a fair opportunity to compete andafford users the benefit of competitive industrialorganizations. These are a necessary element in therealization of the Community's fundamental objec-tive in the transport field: transport systems that will

I Judgment of the Court of Justice of 30 April 1986, JoinedCases 209-213/84 (1986) ECR 1457.

provide services efficiently, safely and under the bestpossible environmental and social conditions.

58. The Community already disposes of a series ofinstruments concerning State aids in the transportsector, some of them dating back . as far as the I 960s.Similar situations in different subsectors are often nottreated in similar ways, while recent developmentsare not always properly reflected. The instrumentsshould accordingly be re-examined with a view to

their rationalization and updating.

59. In the area of transparency, the Commissionintends to develop an inventory of aids in force tothe benefit of all transport modes. This will permitperiodic assessments to be made of the scale andnature of public financial support to the transport

system. In order that this inventory should betterreflect the reality of the different ways in which sup-port is given, it will also propose measures

increase, where necessary, the transparency of thefinancial accounds of entities responsible for provid-ing transport infrastructure and services. This hasalready been achieved for railway undertakings andin some other subsectors information already avail-able may well be adequate. But there are fields inwhich available information leaves much to desired, making it difficult to evaluate the extent andimpact of State aids, for example, where public auth-orities make investments in infrastructure which maybe compatible with the rules of competition. Portsand other terminals are a case in point. Measures willaccordingly be prepared to increase the transparencyof their financial accounts, taking account of the dif-ferent way in which ports are organized and their div-erse legal status. Basic transparency of this kind isessential for sound application of the Community'aids regime.

60. In the field of notification of new aids, it shouldbe possible to work in two directions simultaneously.

61. On the one hand, it is desirable to enlarge thecategory of aids not requiring prior notification andexamination pursuant to Article 93(3) of the Treaty.RegulatIons 1191/69 and 1107/70 providefor certaintypes of aid in the field of inland transport, notablythose which constitute compensation for public ser-vice obligations, to be subject to the requirement onlythat they be notified after the event. Now that thenecessity and ligitimacy of public service obligationshave been recognized in the fields of civil aviationand maritime cabotage in the context of the 1992 pro-

gramme, consideration should be given to the possi-bility of proposing similar treatment for those areas.Such exemptions would recognize that this category

of aids does not normally disrupt the functioning ofthe internal market and can accordingly be left pri-marily to authorities at national orlocallevel.

62. Consideration will also be given in this contextto the preparation of a proposal for the adoption of ade minimis rule to apply generally to aids in the trans.port sector which by reason oftheir limited scale arealso unlikely to have adverse effects .on the function-ing of the internal market.

63. In the other direction, events have shown thataids take many forms, not all of them obvious, parti-cularly in the context of complex financial operationslinked to the opening up of previously closed mar-

kets to competition or the privatization of transportundertakings. Consideration will accordingly be

given to the development of rules clarifying the priornotification requirements in the case of certain opera-tions of this type in order to ensure that any financialintervention which in fact constitutes an aid is indeedproperly notified.

64. Finally, the guidelines that the Commission haspublished 1 concerning the criteria that it uses to eval-uate State aids will be reviewed to adapt them asnecessary to current conditions. The opportunity willalso be taken to examine whether, at the same timeany other changes are needed in existing Communitylegislation. Such exercises have particular value sincethey give an indication to national and local auth.orities and to transport operators concerned of thescope which is available for measures designed tosupport them particularly in periods of adaptation tonew conditions. Given the very different characteris-tics of the different transport subsectors, it will benecessary to proceed separately for each subsector

though on the basis of common principles which willensure the coherence of the CTP' s general approachto aids. The question of aids in the context of inter-modal transport is considered further in points 93-117.

Further legislative developmentof the internal market

65. The adoption of the measures included in the

1992 programme will not mark the end of Com-

) Memorandum No 2 on the development of the Com-munity air transport policy, COM(84) 72 final, Annex IV.Financial and fiscal measures concerning shipping-oper-ations with ships registered in the Community , SEC(89)

921 final.

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munity legislation concerning the internal market intransport services.

66. Certain internal market measures alreadyadopted themselves contemplate further legislativeactivity. For example, in the railway field, further pro.posed actions are foreseen with regard to thedevelopment of the railways, in particular, in the fieldof international transport of goods. 1 Similar provi-

sions or undertakings have also been made amongstothers in the fields of a permanent system of marketobservation for carriage of goods by rail, road andinland waterway; passenger services by road; inlandwaterways and, in the maritime sector, manning rulesfor island cabotage and any other measures neededin the context of cabotage liberalization. The actionprogramme in Annex III identifies measures of thiskind.

67. Where further legislative activity has been con-templated expressly in existing Community legisla-tion, the Commission intends to make any necessaryproposals in the light of conditions prevailing at thetime. It will also .consider, taking into account theproportionality dimension of the subsidiarity princi-ple, how the objectives in question can best be real-ized.

68. The Commission will also review the function-ing of Community legislation with a view to deter-mining whether the objectives of the internal marketin transport services are being effectively attained. In

addition, Community legislation includes obligationsfor the Commission to review the functioning of

Community legislation though without any explicitreference to possible future initiatives. For example,reports are called for on the application of the Coun-cil Regulations on route access and fares in the fieldof civil aviation. 2 The same applies to the implemen-tation of the 1986 shipping Regulations 3 and to the

Regulation on social issues in the field of road trans-port such as driving time. 4 Whether these reports willbe accompanied by proposals for action will bedecided at the appropriate time.

69. In addition, the 1992 programme concentratedon known priorities. But problems that were put toone side as being of secondary importance, or simplynot anticipated, may well now emerge as meritingattention. Here it will be necessary to establish, underthe conditions now prevailing or likely to prevail inthe future, what type of initiative would most effec-tively realize the Treaty's objectives. Areas requiringanalysis include general aviation, taxi services, secur.ity transport, ambulances, own-account transport andrental of motor vehicles. On the harmonization side,

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the opening up of hitherto national markets calls fora continued examination of the need for Communitymeasures to address problems which liberalizationmeasures will not by themselves resolve through theworking of the internal market. Indeed these prob-lems may indeed be aggravated by the developmentof direct competition between operators subjected tostill divergent national or regional regulatory regimesapplying to matters as diverse as the organization ofmarket, taxes and other charges, technical require-

ments, social, environmental and safety obligationscivil liability regimes and so on. These matters. are

considered further in subsequent chapters since theyneed to be examined in the light of major develop-ments which will have a decisive impact on thedevelopment of the Community's transport systemand consequently on the provisions of the CTP relat-ing to the functioning of the internal market in trans-port services.

Information and analysis of thefunctioning of the market

70. The justification for future initiatives and theirpossible content depends in large measures on theavailability of relevant information on the function-ing of the market in transport services and of the dif-ferent transport systems upon which it depends. Thisapplies to measures directly addressing the function-ing of the market and also to other possible develop-ments of the CTP.

71. As to inland goods transport statistics, the col-lection of statistical information is coordinated byEurostat under four Council Directives. 5 Informa-

Article 14 of Council Directive 911440/EEC of 29 July1991 (OJL 237, 24. 8. 1991).

Article 13 of Council Regulation (EEC) No 2408/92 (OJL 240, 24. 8. 1992) and Article 9 of Council Regulation(EEC) No 2409/92 (OJ L 240, 24. 8. 1992).

Article II af Council Regulation (EEC) No 4055/86 of22 December 1986 (OJ L 378, 31. 12. 1986).

Article 16(1) of Council Regulation (EEC) No 3820/85of20 December 1985 (OJ L370, 31.12. 1985).Council Directive 78/546/EEC of 12 June 1978 (OJ L168 26. 6. 1978, p. 29).

Council Directive 89/462/EEC of 18 July 1989 (OJ L226 8. 1989, p. 8).

Council Directive 80/1 177/EEC of 4 December 1980 (OJL 350, 23. 12. 1980, p. 23).

Council Directive 80/1119/EEC of 17 November 1980

(OJ L 339, 15. 12. 1980

, p.

30).

tion is obtained by national statistical institutes ornational transport administrations for road andinland waterways and by the main railway enterprisesfor rail data. The responsibility for data collection

and survey methodology lies, and will continue to lie,essentially within the Member States and theirnational networks of statistical sources.

72. Other information is at present dispersed,incomplete, inconsistent and often of very unevenquality. The 'temporary system for observing marketsfor the carriage of goods by rail, road and inland wat-erways continues to function under the Council

Resolution of 21 March 1992 I for the purpose ofproviding information on the development of inlandtransport markets. In other sectors no such mech~n-ism exists. Information is gathered as occasIOn

. demands from a variety of sources including statisti-cal offices, research institutes, consultancies, indus-trial organizations and transport operators.

The suggestion has been made that in order toimprove this situation an organization such as atransport observatory should be created to generate

relevant information in a more systematic way.

73. However, work currently under way to extendthe European transport statistical information systemis based on a global approach aimed at improvedcomparability between the different modes of trans-port, and considers all modes. A significant effort isin progress to widen the coverage of existing statisti-cal work to include, within the statistics frameworkprogramme, other transport sectors such as com-bined, maritime, air and passenger transport as wellas transport safety.

74. While new initiatives in this field are welcomesuch as the actions being taken to set up a EuropeanCentre for Prospective Analysis on Infrastructure, itwould not be practical to try to centralize the func-tion of gathering and analysing all transport data in acentral 'observatory' as some have proposed. Insteadit would be preferable to promote the cooperation ofbodies engaged in this field, existing and yet to becreated, by developing a network between them. .this end, under the EURET programme, stocktakingof national and other data-gathering and forecastingactivities will be carried out with a view to evaluatingthe possibilities for cooperation and coordination. Inthe light of that evaluation, initiatives will be takenbuilding on what already exists. The future of theCommunity s existing system for market observationshould be decided in the light of these developments.

From the elimination ofbarriers towards an effectiveintegrated system

Imbalances and inefficiencies

Modal disequilibria

75. As was shown in Chapter II, economic growththe increasing importance of services and majorsocial and economic changes .have contributedtowards a considerable expansion of the transportsector. The completion of the internal market, includ-ing the lifting of cabotage restrictions, the creation ofthe European Economic Area and the movement

into market economics of the countries of Eastern

and Central Europe and the CIS will certainly contri-bute to further expansion in the future. The expan.sion of the transport sector has, however, brought

. problems in its wake; growth has pro~uced?r e~ac~r-

bated a number of imbalances and Inefficiencies Inthe transport system taken as a whole and also withintransport modes. Despite the considerable success oftransport in meeting consumer demand, inadequateintegration of modes is denying users some practi~al

alternatives to current services. Inadequate capacityin some modes in producing congestion and environ-mental damage, while, in others, underused capaci-ties exist. Inadequate or incomplete networks causebottlenecks in some areas; in others, they preventfuller integration of peripheral regions into the singlemarket. These imbalances and inefficiencies are notsimply the cause of inconvenience and frustration.They are unacceptable to a growing body of publicopinion and, uncorrected, they threaten to damagethe Community s development, slowing the process

of economic integration and adversely affecting itsinternational competitiveness.

Road

76. One of the important reasons why imbalancesand inefficiencies have arisen is because transportusers have not been adequately confronted with thefull costs of their activities and because the construc-tion of transport infrastructure has been laggingbehind what was needed. Individual decision-makingthus gave socially sub-optimal results by distortingthe balance between transport demand and supply,

I QJC86 1992

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both across modes and within. As prices do notreflect the full social cost of transport, demand hasbeen artificially high. If appropriate pricing andinfrastructure policies were to be pursued, these inef-ficiencies would largely disappear over time.

77. Road transport activity has grown faster thanother modes and in general continues to do $0. More-over, the distances of road journeys for both passen-gers and goods are in the vast majority of cases rela-tively short, making it more difficult for alternativesolutions to compete. The private car and lorry havethus emerged as the dominant means of transportcausing congestion in main road corridors and urbancentres. The present traffic situation in many citycentres and conurbations is one of completesatura-tion or close to it. Further development of roadinfrastructure alone is unlikely to resolve the prob-lem, necessary as it may be in some areas. In othersthe construction of new capacity is in any case meet-ing significant obstacles, physical and political.Moreover, associated with a continuing increase ofcars and lorries is an inevitable increase in pollutionand in the number of dead and injured from acci-dents on the road, not always off-set by technical orother improvements in the fields of environment pro-tection and safety.

Rail

78. In the case of rail, traffic and destinations havechanged with a growth in some traffic, notably .urbanand inter-city, but a fall in others, notably in the oldindustrial areas and those suffering a decline inpopulation. Insufficient investment in infrastructurehas produced a numer of saturation points in the railnetwork. However, the entry into service of new sec-tions of high-speed lines and the closure of manylightly used services have created surplus capacity,even if this surplus capacity is not always availablewhere it is most needed. Reductions in rolling-stockhave reduced the spare resources that could be rap-idly deployed. Nevertheless, in the future, the furtherdevelopment of the high-speed network will releasemore capacity on the existing lines which, withlimited investment, could be used for long-distancefreight or other new services.

Inland waterways

79. Waterways are particularly efficient for bulktraffic but have not yet been widely exploited forother trades; the possibilities are limited by accessi-

bility to suitable, well-equipped waterways, such as

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the Rhine and the Rhone. Evidence available sug-

gests that the overall European waterway network iscapable in time of handling much more than the cur-rent traffic, provided realistic investment is made inmaintenance and works to improve the existing net-work, in particular, to remove some major bottle-necks and stimulate transport particularly along thenorth-south axis and eastwards towards the newLiinder of Germany and Eastern and Central Europe.Improved handling facilities to cope with theincrease in container traffic are particularly necessaryif any expansion in this sector is to occur.

Air

80. Strong growth rates in air traffic inside and to .and from Europe have been sufficient to place severestrain on some parts of the air transport infrastruc-ture. Problems resulting from the fragmented andnon-standardized nature of air traffic managementand control (ATM/ATC) systems in Europe andfrom the division of the airspace concide with aser-ious lack of available runway and terminal capacitiesat some major airports. The structure of the Com.munity air space which is constrained by the fixedcivil air traffic routeing systems, the dedication ofextensive volumes of air space for military purposesthe separation of air traffic control systems alongnational lines and the fact that commercial air trafficcontrol of en route traffic does not generally applybelow 10 000 feet is an important obstacle toimprovements in capacity and efficiency. Peakperiod air traffic delays have worsened over the yearsand are now at an unacceptable level with predic-tions of serious worsening in future. Competitive

pressures leading airlines to opt for higher frequen-

cies with smaller .aircraft and hub and spoke net-works are likely to exacerbate the problem.

81. Physical extension of infrastructure capacities inair transport is very often hampered by extremelylong planning periods and a significantly increasedsensitivity in relation to the environmental impact ofaircraft movements. Short-term relief by making bet-ter use of existing capacities is delayed by a lack oftechnical and an economically meaningful degree ofintermodality, in particular between rail and air.

Maritime

82. The maritime transport sector has played andwill continue to play an important role in the transferof goods between Member States. However, the useof the maritime mode is too often limited to situa-

tions where, due to. geographical factors such as theexistence of a necessary sea crossing, land modes donot constitute an alternative. The potential contribu-tion of short-sea transport in competition with landmodes will have to be fully developed, particularly

now that cabotage will provide new opportunities forservices around the Community' s maritime periphery.Instead of the usual combined sea-rail/sea-road jour-ney involving the shortest. searcrossing and longerrail/road journeys, a longer sea journey could reduceconsiderably those necessary by land. Obstacles bar-ring the exploitation of this short-sea potentialinclude handling costs and delays when transferringgoods between modes, delays in ports due to factorsconsidered below, complex documentation proce-dures, customer demands for just-in-time delivery,contractual liability systems in case of accidents .andthe poor image of much traditional short-sea ship-ping. To this list should also be added the relativelyminor role at present of short-sea transport in com-bined transport networks and the fact that possibili-ties of coastal traffic have not yet been widelyexploited due in part to the restrictions on cabotage.

83. When discussing maritime transport, particularmention should be made of seaports which playavital role in providing transfer facilities to othermodes of transport. Shortage of basic capacity is nota general problem among the ports of the Com-munity. Competition between ports of differentcountries, and within the same country, has resultedin capacity being provided to match, or even run inadvance of demand. However, there are ports insome parts of the Community, notably in Ireland andon the southern periphery, where investment in newinfrastructure and connecting links to inland net-works has lagged behind, particularly in providingfacilities to meet the increasing demand for commod-ities to be delivered quickly and predictably. Com-bined with organizational and operational difficul-ties, these handicaps have contributed to the develop-ment of a situation in which the hinterland of someNorth Sea ports extends very far to the south andwest, even south of the Alps, generating inland trafficwhich in other circumstances would not seek to tran-sit such long distances.

84. Moreover, the demand for rapid and reliableservices is reflected in the continuing trend for tradi-tional methods of handling goods to be replaced bythe use of containers, which offer advantages in termsof speed, reliability and security. Forecasts availableon container traffic point to a growth of approxi-mately 30% between 1990 and 1995. The same advan-tages are even more apparent in the case of ro-rotraffic, and use of this type of service has grown rap-

idly on short and medium-length sea crossings withinEurope. To cope with continuing increases in thesefast-moving types of traffic new facilities will proba-bly be required. Previous experience suggests that inthe largest ports of the Community there will be littledifficulty in providing them. The position may be dif-ferent in the peripheral areas and for small ports

however, where resources may not be readily avail-able. In many ports, improvements to present organi-zational and operational arrangements will also benecessary in order to ensure that existing and futurefacilities are used as effectively as possible, to enablethe ports concerned to share in the increased trafficof the single market and to play their proper part in amore balanced distribution of traffic.

85. Finally, as regards the maritime sector, mentionshould be made in this context of the continued ero-sion of the Community's deep sea fleets through flag-

ging out. If maritime transport is to make a full con-tribution to the functioning of the Community

internal transport system, it will be better able to doso to the extent that the shipping industry, its skillsstructures and associated activities have not beenallowed to decline so seriously that it will be very dif-ficult, in some areas perhaps impossible, to reversetht: trend. Measures like EUROS which seek to res-tore the competitiveness of all Community deep-seafleets by re-balancing the conditions under whichthey have to operate in competition with third coun-try carriers, including these operating under flags ofconvenience, have an important role to play in thisrespect.

Regional dimension

86. Furthermore, when examining the problems ofimbalances and inefficiencies of the transport sectorthe regional dimension must be included. There is aclose interaction between the development of trans-port and the spatial distribution of economic activity.

87. Most of the critical performance sectors of theEuropean economy, namely services and . high-techmanufacturing, tend to be located in congested, envi-ronmentally sensitive areas: on the one hand, majorcities and conurbations, and on the other, in thecorridor Barcelona ~ Marseille/Lyon - Milan/Stras-

bourg - Stuttgart ~ Munich. These are places inwhich provision of supplementary infrastructure isparticularly difficult due to environmental andeconomic costs. Alpine routes, which have strategicimportance for the linkage of the northern part of the

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Community to the south, pose particularly sensitive

problems.

88. At the same time, as growing congestion affectsthe economic core, there has also been underinvest-ment in peripheral areas. None the less it is widelyaccepted that reliable transport systems are instru-ments capable of making an important contributionto the redressing of current centre/periphery dispari-ties. Indeed, regions .eligible for ERDF Objective Ifunding show a level of transport infrastructure repre-senting only 50 to 60% of the Community average. Inaddition, the functioning of regional transport net.works has been negatively affected by several factors,for example changes in transport demand due toincreased car use, rural exoduses and the closingdown of numerous transport lines. The reasons forthis lack of investment are: the relatively low rankingof infrastructure investments in the periphery, mainlydue in part to the difficulties in identifying and quan-tifying benefits from such schemes; and the highcosts involved in overcoming the problems of iso-lation of these areas, often related to the existence ofnatural barriers (the Alps, the Pyrenees or sea cross-ings); this situation is particularly disadvantageousfor Ireland and Greece. The result is a failure to com-plete networks which clearly acts to the detriment ofthe periphery and therefore to the coherent develop-ment of the Community as a whole. Of course theregions most affected by this investment gap tend tobe the least prosperous parts of the Community.

89. The Community has long fought to overcomethe geographic disadvantages of its less well-offregions. The European Investment Bank (EIB) hasbeen acting since the origin of the Community in thefinancing via loans of infrastructure projects of com-mon interest and in the financing of projects aimedat the promotion of regional development, includingtransport projects. In 1975 it was joined by the Euro-pean Regional Development Fund (ERDF) whichhad, up to 1988, granted ECU 8786.6 million toimprove transport infrastructure in lagging regionsthat is 36% of the total ERDF expenses. In 1982 aspecific budget line was created to contribute to thedevelopment of transport infrastructure. The overallinfrastructure deficit of the Community was accen-tuated by the entry of Greece in 1981 and then ofSpain and Portugal in 1986. The Community res-ponded to that challenge with the 1988 reform of theCommunity s Structural Funds which will contribute,between 1989 and 1993, ECU 5583.9 million totransport projects in Objective 1 regions via the Com-munity support frameworks. Additional projects areto be funded through programmes such as Interreg(crossborder cooperation) and REGIS (ultraperi-

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pheral islands). The Commission has now proposed areinforced financial framework for the Communitybudget in the period 1993 to 1997. 1 This includes a

substantial increase in the Structural Funds and prov-ision for the Cohesion Fund agreed at Maastrichtunder which help is specially targeted on transportinfrastructure and environment needs in the fourpoorest Member States.

90. In addition, given the Community s geography,physical and economic, some areas have to bear adisproportionate burden of the costs of cross-frontiertraffic, particularly road traffic. This issue has becomeparticularly acute regarding the transit of heavygoods vehicles from which transit regions may derivelittle or no economic benefit. In very simple terms, itcan be said that some Member States enjoy anapproximate balance in that their lorries travel asmuch on roads in other Member States as do otherlorries on theirs. Others do not, however. Some enjoya significant positive balance while conversely othershave to support a burden which significantly exceedsthe use their lorries make of roads in other coun-tries. 2 Progress on tackling the problem at Com-munity level has consisted in the fixing of a commonminimum rate for excise duty on diesel fuel3 butmuch remains to be done in the area of approxima-tion of user s charges and particularly on taxes forlorries. 4

Environment

91. Finaliy, the growth in transport, though contri-buting positively to the Community's industrial andservice economy, has caused a variety of increasinglyserious problems as already indicated in Chapter II.This question is further developed in points 148-184.

The Challenge

92. The challenge for the Community s transport

system is how to provide, in the most efficient man-

I 'The Community's finances between now and 1997'

COM(92) 2001 final, 10 March 1992.See Elimination of distortions of competition of a fiscalnature in the transport of goods by road, European Comis-sion, 1986.Council Directive 92/82/EEC of 19 October 1992 (OIL316 31. 10. 1992).

COM(92) 405 fmal, 30 September 1992.

ner, the services that are necessary for the continuedsuccess of the single market .and the mobility of theindividual traveller, while continuing to reduce theinefficiencies and imbalances of the system and safe-

guarding against the harmful effects that increasedtransport activity generates. It is possible to meet thischallenge, while respecting the basic tenets of the freemarket, by the introduction of economically efficienttransport policies. However, this will require a num-ber of actions, Community and national, in order toensure that the transport market contributes to thehighest possible societal welfare, taking into accountboth the benefits for the user and the cost to the envi-ronment, in all regions of the Community.

Transport demand, intermodalcompetition and complementarity

Capacity constraints and possibleresponses

93. The trends presented in Chapter II indicate that,in a 'business as usual' scenario, the demand fortransport, both passenger and freight, is likely to con-tinue to increase at a rate at least as fast as that of theeconomy as a whole. This would imply that by theend of the decade demand could well be between aquarter and a third higher than it is today. Unless act-ion is taken, much of this increase will probably beconcentrated in the road sector which is already

under pressure, sometimes severe. The reasons forthis pressure stem largely from the following factors:

fl1"St, transport users have not been obliged to pay thefull cost of the services that they use, notably the

external costs;

second, public investment in infrastructure has beenreduced in real terms over the past 10 years while

traffic has increased;

third, planning requirements and the resistance frompublic opinion have imposed increasing restraintsupon the development of new projects.

The net result is a shortfall in the level of infrastruc-ture needed to meet demand.

94. One possible solution, at least in part, is to lookfor ways to increase resources available for invest-ment, particularly by involving the private sector. Theapproach being developed on the basis of the UnionTreaty' s provisions on trans-European networks pur-sues these objectives as explained more fully in

points 118~ 147. But new investment can only bepart of the answer. Also important is a continued

effort to eliminate artificial restrictions on the provi-sion of transport services which prevent the most effi.cient solutions being used, a matter already consid-ered in points 46~ 74. In addition, it is essential toexamine how under-used capacity in the transportsystem, particularly in the modes other than roadcould be brought into service, while respecting the

. principle of free choice for the user. There are goodgrounds to consi(ier, as indicated . in the precedingsection of this chapter, that spare capacity, actual andpotential, does exist as regards rail, inland waterwaysand short-sea shipping. Policy measures and adv-anced technologies .can seek both to increase theattractiveness of the individual mode in question andpromote the combined use of different modes. Com-bined transport should include the wider possibilitiesthat are offered by different combinations of servicesrail/sea, rail/inland waterway, rail/air in particular.These intermodal operations should provide the bestcombination of the different systems to meet theneeds of operators and users.

95. Beyond these measures, however, it will be

necessary to address the fundamental question of thetrue costs of transport and the necessity of internaliz-ing external costs so as to ensure the development ofa sustainable transport system. Such a policy willinfluence the demand for all modes by increasing theprice of individual modes to the extent that theseimpose costs on society which are presently not paidfor by the respective transport users. As the externalcosts associated with various modes differ signifi-cantly, the price increases will also vary across trans-port modes, leading transport users to adjust theirdemand, in particular, to favour those forms of trans-port that impose fewer external costs or even toreduce or avoid unnecessary movements.

Costs, charges and subsidies

96. Why has such a strong shift to road occurred

both in passenger and freight transport, in the past 30years, seemingly neglecting the possibilities offeredby rail, inland waterways and short-sea? To answerthis fundamental question it is necessary to look atthe determinants of mode choice. Obviously, theincreasingly finer penetration and availability of roadhaulage at virtually all locations plays an importantrole and is something that is not within the reach ofthe other modes, thereby limiting intermodal compe-tition, especially on short hauls. In transport marketswhere all modes compete, various elements enter into

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the mode choice process: flexibility, speed, reliability,frequency and price are probably the more importantones. In freight transport, the increasing share ofhigh-value/low-volume goods and the surge in theuse of information technologies, both in productionand distribution, have favored modes that score rela-tively well on the ftrSt four criteria, which could bedescribed by the label 'quality' . Road haulage and airtransportation, the latter offering high-quality trans-port though at relatively high cost, profited stronglyfrom this development. Furthermore, due partly tothe fact that external costs were not fully internalizedthe constant relative reductions in road costs chargedto users stimulated this process, as they not onlymade road haulage more attractive in itself, but alsoreduced the incentive to further develop and exploitthe potential of other systems.

97. To change this situation action might be takenat different levels:

ftrSt, to reduce the charged cost differences betweenmodes, by incorporating into the transport prices theinfrastructure and external costs which are presentlynot taken into account;

second, to improve the quality of service. that is avail-able, particularly for intermodal systems.

98. The problem of coverage of infrastructure andexternal costs is complex and involves a wide rangeof issues. However, the weight of the best availableevidence suggests that certain sections of the roadtransport industry do not cover their costs, particu-larly when external costs are taken into account.

99. As to whether changes in the level of chargescan vary the distribution between modes, commonsense suggests that, under the right conditions, it will.After all, the growth in the share of the road sectorhas owed much to the constant reductions in itscharged costs relative to other modes. Clearly, how-ever, changes will only take place where there are via-ble alternatives, which is not always the case, particu-larly over short distances. But for medium and longerhauls potential alternatives do indeed exist and this case should make other modes more competitiveand therefore moves to ensure that road transportdoes pay its proper share of infrastructure and exter-nal costs should effect a shift in their favour, particu-larly if other measures are also being taken toincrease their attractiveness.

100. Two further considerations reinforce the casefor proceeding in this direction. First, even if roadusers were covering the real costs of the road trans-port system, it is a finite resource in the sense that

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road capacity cannot be constructed to meet anygrowth in demand. In congested and other environ-mentally sensitive areas, in particular, the possibilitiesfor increasing the capacity of the system by adding tothe network are now rather limited. In conditions ofscarcity it makes sense to ensure that demand man-agement mechanisms including charges are imposedwhich will create an incentive for users to reflect onthe value of a particular journey or to consider otheralternatives. Second, to rely on cost imputation oreven road pricing is to use a market mechanismwhich still leaves operators with choice while ensur-ing a better utilization in time and space of differenttransport modes. Some other possible techniques fordealing with problems do not have these advantages.It makes sense to explore fully the possibilities forresolving problems on the basis of such a mechanismif it can avoid the need for more direct techniquessubstituting regulation for user choice, albeit a condi-tioned one.

101. The objection may be made that increasing thecharged costs of transport, particularly road transport,would be economically damaging not only to trans-port operators but to the ecOnomy generally. Oneoption that could be examined which would avoid orlimit general increases in the cost of transport wouldbe to reduce simultaneously the licence and othercharges applied to heavy goods vehicles that are usedin intermodal systems, while increasing the level ofthe charges overall, including those imposed on useof the private car. An idea to be explored in this con-text might be in the inclusion in specifications forheavy intermodal road vehicles of high standards asregards safety and protection of the environment.

The special tax regime to apply to such vehicleswould reflect the fact that they would have lowerroad mileages than ordinary ones and would alsoimpose lower external costs. The specifications wouldalso have the effect of promoting the interoperabilityof intermodal systems throughout the Community.

102. The relationship between the charged costs ofdifferent transport modes can also be modified by theuse of public financing to reduce those of the modeswhich have the potential capacity to relieve modesunder stress. However, a general policy of perma-nently subsidizing certain types of transport opera-

tion, particularly long distance passenger and freightmovements, is unacceptable. It relieves the entitiesconcerned from competitive pressure while simulta-neously disadvantaging their competitors. It isunlikely to produce viable, efficient, tong-term solu-tions. Nevertheless, aids do have a role to play notonly in modifying the cost relationship of modes butalso in rendering certain modes more attractive in

themselves. It is necessary to develop guidelines con-cerning the conditions under which they are to beconsidered acceptable under Community law. Aidsto investment,. particularly in new systems, for exam-ple, a new approach to the movement of road freightvehicles by rail, or which encourage the switch ofenvironmentally sensitive flows away from the roadwill merit particular attention in this regard. Suchguidelines would not only serve to clarify what mea.sures may be taken by national or local authorities.They would also serve to orient discussions made onCommunity fmancing of projects forming part oftrans-European networks and on positive measuresto support transport modes offering the possibility ofnew capacity under favourable environmental condi-tions; in particular, inland waterways and maritimetransport.

103. Measures affecting the charged. costs of trans-port have a direct impact on the competitive positionof transport systems and operators. It is difficult fornational or local authorities to act alone if by doingso they will prejudice the position of their enterprisesrelative to those from other regions. For this reasonmeasures of this kind are best taken within a frame-work decided at Community level. Indeed, it may bethat they can only be taken in this way. The develop-ment of a Community framework in this field cannevertheless leave scope for national or local auth-

orities to take account of their particular circum-stances, for example, in deciding on the introductionof particular road pricing schemes. Likewise, in so faras charging systems will increasingly use electronicdevices for payment, action is justified at Communitylevel to ensure that compatible technologies aredeveloped so that vehicles from different MemberStates can be processed with equal facility. Past andcurrent Community R & D work has verified thecompatibility and capability of technologies and iscurrently assisting the development of common spe-cifications for a pan-European system for chargingoperations.

Complementary measures

104. Other complementary measures to improve thequality of different modes and of intermodal servicesas such will also need to be considered.

New entrants in intermodal services

105. First, the development of more attractive inter-modal services depends to a considerable degree on

the efficiency of the management and supervisionthat is applied.

Particularly as regards international routes, existing

services have often not met performance require-ments. In this context, the railway Directive 91/440/EEC will as from next year allow new railway opera-tors into the combined transport market, which

should stimulate a higher quality of service from allconcerned. Further steps now need to be taken give full effect to the principle contained in the

Directive. An examination will be made of the needfor new measures in relation to access to and charg-ing for railway infrastructure and for the establish-ment of railway companies, since present indicationsare that in its absence, Directive 91/440 I might wellhave rather limited or unacceptably divergent prac-

tical results.

Cooperation and competition rules

106. Second, intermodal services may require coop-eration between different transport enterprises, parti-cularly in the light of the provisions of Directive 91/440. Such agreements will have to comply with Com-munity competition law. In this context, the Commis.sion will examine possible options, including thepossibility of a modification to Regulation (EEC) No1017/68 2 and will inform concerned undertakings

by appropriate means of its policy in this respect. Thetreatment of maritime undertakings operating inintermodal transport will also be reconsidered.

Technical harmonization

107. The third area of activity is the vital one oftechnical harmonization, in particular to guaranteethe interconnection of intermodal systems and theinteroperability of mobile equipment. The field isvast and complex. Accordingly it will be necessary tofix priorities and begin by addressing those problemslikely to yield useful results quickly such as diverg-ences causing problems for the transfer of loads andincompatible linkages between components. In thesomewhat longer term, more comprehensive initia-tives might be taken such as the possibility men-tioned above of developing specifications for heavy

Council Directive 9l/440/EEC of 29 July 1991 (OJ L237 24. 8. 1991).

Council Regulation (EEC) No 1017/68 of 19 July 1968

(OJ L 175 23. 7. 1968).

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goods vehicles dedicated to intennodal operations. Inaddition appropriate compatible information systemsmust be developed. Research and development pro-jects to prepare the ground for these initiatives willhave an important role to play.

108. Technical harmonization, essential to the inter-operability of systems throughout the Comrnunityand affecting the output of its equipment industriesnecessarily requires action at Community level basedas far as possible on the Community s new.approachto technical harmonization followed since 1985whereby essential requirements are established inCommunity Directives and technical specificationsare achieved through reference to European stan.dards developed by recognized standardizing bodies.Initiatives to extend the effect to the measuresbeyond the Community s borders will also need to beconsidered.

Liability and insurance

109. Fourth, at present, different regimes apply tothe liability of intermodal operators not only asbetween Member States but also to the differentmodal stages of an intermodal journey. As a UnitedNations Convention on multimodal internationaltransport of goods was adopted on 24 May 1980 buthas not yet come intq force, an investigation isneeded of the extent to which a more uniformapproach would increase the attractiveness of multi-modal services. Should it appear desirable, the differ-ent methods of realizing that objective will then

require evaluation, bearing in mind the Communityinterest in seeing rules applicable to the operators

being applied also to those from third counries, parti-cularly those from the European Economic Area andEastern and Central Europe.

Trans-European intermodal networks

110. The fifth area of activity concerns the develop-ment of trans-European networks for different modesand their progressive integration. This topic is devel.oped as a whole in points 118- 147, but certain

aspects of particular relevance to intermodal relation-ship merit attention at this point.

Freight

111. As regards freight, efforts will have to be madeto identify those corridors where the maximum

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potential for transfer exists .and also those flows ofgoods that particularly lend themselves to transfer. Astart has been made with the recent proposal for pilotactions for combined transport: PACT. Specificationsfor tracking and information systems should also bedeveloped. In order to include as rapidly as possiblecertain peripheral regions in the benefits of the exer-

cise, and bearing in mind difficulties that will beencountered with track and loading guages on certainroutes, particular attention should be given to theinterfaces between the core network and the systemswith which it connects. Hubs will have to be prov-ided with the necessary equipment to ensure efficienttransfers to spokes which will continue to have differ-ent technical specifications for some time to come.

112. Indeed, in the context of intermodality, termin-als of all kinds are of particular importance. Theyconstitute the vital interfaces which in large part willdetermine the competitiveness and utility of the sys-tems. To the extent that they become more effectivethe average distance at which combined journeysbecome competitive with road which is at presentestimated to be in the region of 700 kID, will decrease.Given the reality that most freight transport takesplace over shorter distances, as indicated in Chapter, the future contribution of intermodal transport

depends critically on improvements in efficiencywhich will allow it to compete effectively in thosemarkets.

113. Terminal efficiency can also make contribu-tions to the reduction of some other imbalances andinefficiencies. More effective ports in the western andsouthern periphery are essential if short-sea shippingis to playa bigger role, relieving some of the pressureon north-south transit across the Alps. Freight distri.bution centres located near large urban areas cancontribute in various ways. Carefully sited, they canact as intermodal hubs and, through the applicationof up-to-date technology and logistical practicesgreatly improve the efficiency of distribution in urbanareas, reducing the number of trips needed to stockshops and factories by appropriate sorting and conso-lidation of loads. Where freight centres can also bedeveloped as sites for productive activity (the conceptof the ' freight village ), they also attack some currenttransport problems at their root by reducing the needfor movement directly.

Passengers

114. Turning to passengers, intermodality needs anew appraisal if alternatives are to be developed

which, by approximating the door-to-door conveni-ence and flexibility of the private car, can competewith it. In this regard there is a strong argument thatin addition to the Community networks alreadyenvisaged, an effort should also be made to create anintegrated network for collective transport, having atits core complementary air, bus and rail systemsincluding the capillary systems that provide access toand from the longer haul terminals.

This citizens' network would include systems and ser-vices offered by different types of operator, public

and private. Combined with other measures such asthe development of user-friendly information sys-tems, appropriate mobile communications facilitiesand flexible collective transport including taxi ser-vices, such an approach would give public servicetransport a true Community dimension and so contri-bute to reducing the power of the car 'reflex ' whichso dominates many individual travel decisions atpresent. After all, it makes little sense to bring ahigh-speed train into a crowded city centre if many ofits passengers must then fight their way throughcongested streets to an airport .some distance away,not served by efficient collective transport.

115. One accompanying measure that should be

considered is the establishm~nt of a 'Quality charterfor the services forming part of the network. Such act-ion would contribute to both the future CTP and tothe development of a citizens' Europe by defining thequality of service that Community citizens would beentitled to expect.

It would address such issues as frequency, reliability,accessibility, availability and quality of informationease of interchange between services, comfort and soon. It should build on efforts already made in thisdirection, such as the International Road Union(IRU) service standards for buses and the qualityassurance movement based on the InternationalOrganisation for Standardization s (ISO) 9000 series.

116. An approach to a citizens' network based onthe trans-European network provisions of the UnionTreaty will ensure that the Community s interventionis limited to what is necessary to meet its needs whileleaving plenty of scope for authorities at other levelsto discharge their own responsibilities.

It also permits the Community to have an impact ondecisions at other levels, for example, in the field ofland-use planning, while still leaving a large measureof liberty to other responsible bodies to take accountof their particular circumstances. These issues areexposed in greater detail in points 118 - 147.

Traffic management and restrictions

117. The problems caused by road traffic, both lor-ries and private cars, have led to the introduction ofmany schemes for guiding and limiting traffic flows:bans on access to certain areas, restrictions on park-ing, obligatory routes for certain vehicles, night andweekend restrictions, car pooling, park-and-rideschemes, and traffic information and guidance. Suchtechniques clearly have their part to playas one com-ponent in the range of policy responses that need tobe made to the problems. In general, such measuresare best taken at national, regional or local level

depending on the scope of the measure. It has not sofar proved necessary to consider Community actionto harmonize these approaches, which, of course

must not discriminate against vehicles from otherMember States. This safeguard, flowing directly fromthe Treaty, may well be enough to ensure that mea-sures taken do not pose a significant problem fromthe point of view of the CTP. The Commissionaccordingly considers that, in general, no Communitymeasures are needed. However, in so far as manage.ment systems may increasingly rely on telematic tech-nologies, such as those being developed in the con-text of DRIVE, action may be needed to ensure thatthe systems are compatible, as already indicated fortechnologies used in automatic toll collection androad pricing. The Commission will also keep the situ-ation under review to identify developments that

might pose a problem for the free circulation ofgoods and persons.

System and network development

Introduction

1I8. The capacity of the Community's transportsystems to respond to the challenges already outlineddepends to a considerable extent on the ability ofEuropean industries to develop new systems usingthe latest technologies and of all those concerned toincorporate those systems in networks which maxim-ize their practical utility to the user. Successful resultsof research programmes in the transport field canensure that the latest scientific and technologicaldevelopments are applied to enhance the perform.ance and quality of transport systems serving theobjectives of transport policy. For its part, the pro-

gressive development of transport network guidelinesmust ensure that the systems, and their different com-ponents, operate smoothly and effectively together

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transcending frontiers whether these are modal, geo-

graphical, or technical.

119. The Community has an important role to playin these areas since many problems are common toall Member States, if in different degrees, and indeedhave cross-border dimensions and effects. Accord-ingly, it makes sense to find new common solutionsand develop common specifications through cooper-ation at Community and even broader European lev-els. Risks can be shared and economies of scale arelikely to be realized, assisting the development ofnew systems requiring heavy 'up-front' investment.The industrial implications of such activities areaccordingly considerable.

120. The potential synergy between research andnetwork development should also be noted. If newtechnologies are developed in common ' up-stream , itbecomes far easier to decide on the application ofthose technologies through appropriate standards andtechnical regulations for the subsequent developmentof European networks and new services in the inter-ests of compatibility, interconnection and interopera-bility. Conversely, the progressive development ofEuropean networks and new transport services willcertainly stimulate the search for new technical solu-tions to realize those same objectives. Again theindustrial implications of the relationship betweenresearch and network development are considerablefor they constitute a potentially powerful means ofimproving the competitiveness of Community indus-tries in accordance with Article 130 of the UnionTreaty.

121. Finally, it should be borne in mind that ad-vances in information and telecommunications tech-nologies are transforming the interdependence whichhas always characterized transport and communica-tions, in parallel with advances in information tech-nology, the telecommunications network operatorsare now beginning to introduce broadband transmis-sion facilities and new digital mobile communica-tions services within the open network policy of theCommunity. Broadcasters envisage the early introd-uction of digital audio transmission which will enor-mously increase the capacity available for the distri-bution of coded transport and travel information.These new techniques promise to offer unprece-dented services to support the whole transport chainand to facilitate cooperation between different trans-port modes. In addition, new electronic techniquessuch as teleconferencing, teleworking, teleshoppingand various forms of personal.electronic communica-tion are quite likely to modify significantly the way inwhich people regard the need for physical displace-

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ment. However, while the relationships betweenphysical movement and communication over dist-ance may well change significantly, it .should not beassumed that increased use of telecommunicationswill lead to a reduction in transport. For while theyreduce the need for movement, personal communica-tions actually increase the freedom to move withoutlosing access to others.

122. The hybrid character of transport and com-munications means that an appropriate regulatoryframework must be developed through cooperationbetween a diversity of actors from both sectorsincluding the final users who increasingly draw onthe combined services of transport and telecommuni-cations. This framework is vital if industry andgovernment are to contribute most effectively to theadvances in the industrial and economic infrastruc-ture in Europe.

Research and development

123. Community research and development actionsconcemingtransport should provide new tools forrealizing sustainable mobility: efficient, safe transportunder the best possible environmental and socialconditions.

Efficiency

124. Improvements in the efficiency of the transportsystem can be sought as regards the performance .individual modes and operators, the capacity of eachmode to operate with others, and the functioning ofthe transport system taken as a whole.

125. The efficiency of an integrated system will belimited by the quality of its weakest components.Availability, reliability, flexibility and rapidity of eachmode should therefore be enhanced as much as pos-sible, while at the same time any negative effects onsafety, the environment or social conditions shouldbe minimized. Improvements should be sought bothin relation to modes under stress and those whichoffer the prospect of spare capacity, actual or poten-tial. They should be sought in the material used; thedesign of equipment and infrastructure; manufactur-ing and processing techniques; and operational effi.ciency, notably through the application of informa-tion and communication technologies for thedevelopment of new tools to be used by networkmanagers, operators and users.

126. Improvements within different modes shouldbe developed, however, in the context of other

actions designed to ensure that each mode can func-tion more effectively with the others. All modesshould accordingly be regarded as part of a largersystem which should function increasingly as an inte-

grated whole. Careful attention should be given toavoiding new divergences and contradictions such asinformation or tracking systems for one mode thatcannot, or only at high cost, be connected to others ornew transhipment techniques for road and rail thatcannot be easily used for road and inland waterwayor shipping. Progress in the flow and management ofinformation and information-based services also con-tributes to the increased efficiency of physical move-ments. Compatibility, interconnection and interoper-ability should be key criteria. They are the necessaryconditions to bring about the integration of all modesinto one European transport system in which eachmode contributes where it is strongest allowing theoperator and user to choose the best combination forhis journey.

127. Indeed beyond improvements in the efficiency

of particular modes and their capacity to operate withothers, actions are needed that address the function-ingof the transport system as a whole, though distin-guishing between its local, regional and long distancecomponents. The goal would be to develop new toolsthat enable those who use or manage parts of the sys-tem to be as fully informed as possible about theirpresent functioning and likely future development inthe short and long term. Such tools are essential forthose concerned to make sound decisions, not onlyabout current operations but also the longer-termdevelopment of the system and its component parts.This combination of rapid technological change withchanges in user requirements presents a major chal-lenge if Europe is to maintain the necessary technicalcompatibility while enabling its industries to competeeffectively with the rest of the world. Collaboration inthe development of common specifications andEuropean standards is essential for the developmentof an 'open ' transport network permitting interopera-bility of mobile equipment and access to users of allmodes of transport. It is one of the domains wherethe Community can best fulfil its role.

Safety

128. The safety of transport operations, for allmodes but particularly for road transport, remains amajor preoccupation of the Member States asexplained more fully in points 148- 184. Researchand development programmes have already made

significant contributions, primarily at national leveland more modestly through Community actions suchas those on telematics systems applied to road trans-port, vessel traffic systems, air traffic control and con-trol and command systems for railways. These initialactions constitute a sound basis for the developmentof future activities, building on what has beenachieved, in particular, to produce operational resultsas soon as possible.

Environment

129. Researcb and development, when combinedwith complementary actions, can contribute toalleviate many of the .environmental problems out-lined in Chapter II and so help realize the basicobjective of sustainable mobility. Moreover, environ-mental performance is an area in which transport andenvironment policy provides a clear orientation forresearch and development programmes by setting tar-gets which are not attained by current technology butwhich can and must be achieved in the foreseeablefuture. In this context too, the possibilities for includ-ing environmental factors in traffic management andinfluencing the user of the private car and the overalldemand for transport and the implications of suchpossibilities for the vehicle industry require furtherattention.

Social dimension

130. The development of new transport technolo.

gies and systems is not simply a matter of developingnew hardware and software. The human factorremains central whether it is a question of innova-tions that improve labour productivity while requir-ing higher skill levels; automating functions pre.viouslycarried out by human operators; or permit-ting more effective enforcement of rules and systems.The development of new technical componentsneeds to be accompanied by appropriate investiga-tion of the behavioural implications of the new tech-nology, including telematics, and the best means forensuring that it will receive a positive reception fromthose who will operate it or use it as clients. More-over, the technical changes cannot be viewed in iso-lation from other measures that may be necessary toensure their effective application, for example, theuse of fiscal and other economic instruments to influ-ence user and operator choice, their incorporation intechnical standards including those associated with

guidelines for trans-European transport networks ortheir association with measures aimed at making col-lective transport more attractive. Actions concerning

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technical innovation need to be accompanied by aninvestigation of how they can be integrated into theirsocial and organizational context and by other sup-portive measures forming part of the CTP.

A new integrated approach

131. Community research and development activi-ties concerning transport have been carried on in thecontext of a number of programmes having differentprimary objectives. As a result the approach appearssomewhat fragmented and the links with the objec-tives of the common transport policy were not alwaysclearly established.

132. In the fourth framework programme, provisionwill be made so that activities concerning transport-related research .and development will be conceivedin a coherent manner ensuring that those activitieswill also serve the objectives of the CTP. Priority willbe given not only to common problems havingcross-border implications, guaranteeing the interoper-ability of equipment and the interconnection of net-works, the sharing of risk and the realization of econ-omies of scale but, in addition, the projects selectedwill reflect, wherever appropriate, objectives andpriorities of the CTP.

133. The approach will establish a transparentcoherent framework for transport-related research

and development. The framework has three maincomponents: a foundation, designed to establish thestrategic parameters for the technical changes to bedeveloped, and two technological components, onefocused on telematics in their application to transportand the other on the application of other industrialtechnologies. The foundation activity will focus onan assessment of the possible impacts of new tech-nologies on the transport and distribution system, itsusers and operators distinguishing between localregional and long-distance movements. A key issuein this domain will be the relationship betweenhuman factors and possible technical change. Thetelematics component will focus on how these tech.nologies can be applied to all modes and their moreintegrated operation. The fmal component will inves-tigate how other technologies, including generic tech-nologies developed in areas such as advanced manu-facturing, materials and processing technologies, cancontribute to the solution of transport problems andpromote synergies with industries which interfacewith transport. These activities are described in grea-ter detail in Chapter V and in the fourth frameworkprogramme itself.

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Trans-European network development

The problem

134. Until very recently, transport networks havebeen designed largely from a national point of view.Moreover, emphasis has frequently been placed onthe development of particular modal networks ratherthan on the relationships between them, much lesstheir integration as a transport system. From the pointof view of the Community, the traditional approachhas inevitably led to a number ofimportant problems.

These include the frequent abs.ence of adequate inter-connections between national networks, missing linksand bottlenecks, as well as obstacles to interoperabil-ity entailing huge inefficiencies. Such obstacles are .found both within modes, for example, as regardsdifferences in gauge and electric current in the rail-way sector, and between modes, for example, incom-patible approaches to the technical specifications forcombined transport.

A particularly significant example exists in the airtraffic area where wide divergences exist betweenincompatible national systems, standards and operat-ing practices. In addition, differences in the geo.

graphical situation and economic history of theMember States have resulted in considerable diver-gence in the availability and quality of transportinfrastructure, in general the centre and north of theCommunity being much better equipped by compari-son with the periphery and the south. The general

stagnation in investment in transport infrastructureover the last decade has not provided an environ-ment favouring the early elimination of these obsta-cles and imbalances.

135. Beyond these difficulties, the overall efficiencyof the Community's transport networks, on which thefree circulation of persons and goods depends, isincreasingly determined and indeed threatened bythe growing concentration of traffic on a certain

number of routes, modes and destinations with whichthe present organization of the networks is finding itincreasingly difficult to cope.

Examples include the unbalanced development ofthe Community's ports to which reference has

already been made in points 93 - 117; the contin-uouslyrising demand on the Rhine and Rhone corri-dors; the crossing of London and Paris by train; thestress on the air traffic management (ATM) systemparticularly in north-western Europe; congestion onroads leading to the newly opened regions of Easternand Central Europe, particularly at border crossingsand, more generally, at major motorway nodes andurban centres.

De Community's role

136. The planning and development of European

transport networks involves authorities at all deci-sion-making levels: European, Community, nationa~regional and local. Up to now the Community hashad a rather limited role, though in recent years thepace has quickened notably. Beginning in 1978 withthe setting up of a Committee on Transport infra-structure and a consultation procedure for the pur-pose of coordinating the development of transportlinks in the Community, the Community began tomake modest ad hoc financial contributions to invest-ment in projects of Community interest in 1982. In1990, a medium-term multiannual budget wasdecided for a three-year period and, at about thesame time, a network for high-speed train$ wa$ devel-oped on the basis of preparatory work by a high-levelworking group consisting of experts from govern.m.ent, industrY, transport operators and users.

The same approach has since been applied to thedevelopment of networks for combined transport forfreight, motorways and inland waterways.

137. Of much larger quantitative importance havebeen the transport infrastructure investmentsfinanced by the Community through its StructuralFunds and instruments. Since the reform of the Struc-tural Funds in 1988 and the move away from thefinancing of individual projects, the assistancerequirements of the less developed Member Satesand regions are integrated into overall economicdevelopment plans for the regions concerned. In

these development strategies accessibility considera-tions have played a major role. Under the ERDFcommitment credits for transport infrastructure since1975 have been estimated at about ECU 16000 mil-lion. This has been additional to the huge and long-standing contribution of the EIB loans to transportinfrastructure, evaluated at about ECU 14000 millionfrom 1982 to 1991 and the relatively smaller but stillimportant contribution of the European Coal andSteel Community to promote steel consumptionaround ECU 1200 million since 1987. Many of theprojects funded in these ways have had a broadCommunity interest since they have improved itstransport networks from the point of view of allpotential users.

138. Reference should also be made to the activitiesof the United Nations ' Economic Commission forEurope which has, for 10 years, with the Com-munity' s participation, been developing its networkprojects, in particular, for motorways and rail, TEMand TER. The$e have ensured at least a minimum of

coordination, for the development of those networksthroughout the larger Europe.

139. The provisions on trans.European networks inthe Union Treaty provide a new basis for Com-munity action, define more clearly the objectives andlimits of Community involvement, and introduce anew decision-making process as well as a newapproach to financing. All of these provisions pro-vide clarification as to the application of the subsi-diarity principle in this area and therefore as to howthe Community should relate its activities to those ofcompetent authorities at other levels. Environmentalprotection requirements must also be integrated intothe establishment and development of these net-works.

Objectives

140. The substantive goal of Community action isdefined as the establishment and development oftrans-European transport networks, within a frame-work .of a system of open and competitive markets,through the promotion of interconnection and inter-operability of national networks and access thereto. Itmust take particular account of the need to linkisland, landlocked and peripheral regions with thecentral regions of the Community. In brief, the goalto be pursued is not the improvement of transportinfrastructure in general but the integration of theCommunity' s transport system through the comple.tion and combination of its networks, taking parti-cular account of the needs of its more geographicallyisolated regions.

Territorial and regional aspects of the developmentof the trans-European transport network should betaken into account to enhance their regional produc-tivity. New geographical and economic disparitiesshould not be allowed to originate from a lack ofcomplementarity between the trans-Europeannational and regional networks, on the one hand, andthe absence of Interconnection between modes, forexample plane and urban transport, or between twogenerations of the same mode, for example high-speed train and conventional railway, on the otherhand.

The process

141. The realization of this goal accordinglyrequires, fIrst, an examination, on the basis of workalready completed or under way, of the strengthsweaknesses and potential of the different transport

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networks and their interrelationships, with a view toidentifying how best to proceed. This task mustnecessarily be carried out at Community level thoughwith the maximum participation of concernednational, regional and local authorities as well as net-work managers, operators and users. In particular, theimpact of new infrastructures on the directly con-cerned areas and on other affected areas should beassessed. Regional nodes of communication shouldbe further developed to ensure the optimal efficiencyof the connection between the main network and thecapillary, regional/local networks. The structures andprocedures used to prepare infrastructure initiativesalready taken can be used for this purpose and, if

necessary, further developed. On the basis of this pre-paratory work, the Commission must then proposeguidelines, indicative in character, covering the objec-tives, priorities and broad lines of measures envis-aged in the sphere of trans-European networks,including the identification of projects of commoninterest, together with any necessary accompanyingmeasures to ensure network interconnection andinteroperability of mobile equipment including theuse of telematics for transport management, in parti-cular, in the field of technical standardization. Theseguidelines are then to be adopted by the Councilunder the co-decision procedure with the EuropeanParliament and after consulting the Economic andSocial Committee and the new Committee of theRegions. Moreover, once the Community s guide-

lines have been adopted, the competent nationalregional and local authorities determine the preciseimplementation of the infrastructure projects requiredto realize the networks as defined. As necessary theguidelines can be further amended and developed toreflect changes in circumstances.

142. This process and the indicative guidelineswhich it produces thus constitute the basis for a part-nership between all those authorities involved in thedesign, realization, maintenance, management anduse of transport networks. In this way, the interests ofthe Community and the role of its institutions arebrought into harmony with those of competent auth-orities at other levels.

Financing

143. The financing of transport infrastructure in theCommunity poses a number of major problems. Onthe one hand, as already indicated, while traffic hasbeen increasing for many years, the general level ofinvestment in transport infrastructure has been stag-nating at about 1% of GDP and in some areas there

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has been a decline. On the other hand, a reasonableestimate of the volume of investment required duringthe period 1990 to 2010 to guarantee adequate func-tioning of the total transport system is of the order ofECU 1 000 to 1 500 billion, or 1 to 1.5% of GDP, andprobably towards the higher end of that range ifsig-nificant improvements are to be realized. Given thesize of the Community's total budget and the multi.pie claims upon it, the scale and nature of its finan-cial participation have to be carefully considered.There is clearly no possibility at this time of the Com-munity becoming the primary source of investment inplace of the Member States or the private. sector. Itsimply does not have the resources and, even if it did,its role under the network provisions of the UnionTreaty is not to develop transport infrastructure as

such hut to focus on the more limited objectives de-scribed above. Moreover, those provisions also indi-cate that it should privilege certain forms of interven.tion, namely the .financing of feasibility studies, loanguarantees and interest-rate subsidies. This clearlyimplies that such Community interventions areintended to support operations that are primarilyfunded by others. The Community contribution is toprovide the financial leverage that will ensure thatinfrastructure programmes funded primarily atnational or regional level will nevertheless integrate

into the larger framework and priorities which theCommunity as a whole has decided that it needs. Inthe context of the Cohesion and Regional Develop-ment Funds, the situation is different in that thebroader economic goals of those programmes requirethe Community to provide finance on a scale and inways which permit the realization of projects thatwould otherwise probably not be realized, either at allor at least in the next five years or so. This is justifiedby the fact that weaker regions of the Community arealready handicapped by insufficient levels of invest-ment and that special efforts have to he made toreduce the gap.

144. The need to make the best possible use oflimited funds will require that every effort be made tomaximize the effectiveness of Community interven-tion through the careful selection and combination ofavailable financial techniques. These include theencouragement of private investment through instru-ments like the declaration of European interest andthe realization of synergies between different formsof Community intervention, for example, loans fromthe European Coal and Steel Community instrumentor the EIB. More generally, the network guidelinesprovide a flexible tool for ensuring that Communityinvestment in transport infrastructure, in whatevercontext it is made, forms part of an overall transportstrategy.

Network development and the guidelines

145. The adoption of network. guidelines and thenecessary accompanying measures will constitute thefoundation for Community actions on transportinfrastructure. The technique is a flexible one whichpermits a broad range of issues to be addressed goingwell-beyond the establishment of a consensus routes and destinations. For example, attention canbe given to the application of information and com-munications technologies, in part developed by Com-munity research programmes, to provide useful infor-mation both to network users about alternativemodes, their costs, time consumption and to networkmanagers on the real time-use of their networksdemand forecasts, capacity, and cost. Attention canbe focused on the performance of nodes and termin-als in the interests of promoting network access inter-connection and interoperability. Environmental andsafety considerations can also be given the .attentionthat they deserve. The environmental implications ofthe different networks will be subject to analysis onthe basis of common criteria with a view to ensuringtheir compatibility with the objectives of the Com-munity s environment policy. This will permit therole of each mode, and its relationship with others, tobe assessed in order to optimize their contribution toa global transport system which is effective andwhich respects the environment. Finally, the issue ofquality assurance can also be addressed both as toinfrastructure, fixed and mobile, and as to the serviceoffered by operators. In this context, initiativesalready taken by certain operators and in the contextof quality standards based on the ISO 2000 series will

need to be taken into account.

146. Proposals on combined transport, inland wat-erways and motorways have been recently added tothe initiatives already taken concerning the high-speed train. Preparatory work has already begun onconventional railways; maritime and coastal ship-ping, including ports; airports and air traffic control.The guidelines will need to include provisions on thedeployment of telematics appropriate to the parti-cular sector. As already explained in points 93 - 117initiatives will also be taken in relation to a citizenspassenger network on an intermodal basis. Indeedthe process of developing these different networks

must have as its finality an intermodal transport sys-tem embracing, to the maximum extent possible, allof them.

147. Finally, the problems affecting Communitytransport networks also arise in relation to third coun-tries, particularly those of the Community s Europeanneighbours. The network provisions of the Union

Treaty refer to trans-European not trans-Communitynetworks and specifically provide for cooperationwith third countries to promote projects of mutualinterest and to ensure network interoperability(Article 1 29c(3)). The Community should adopt aglobal approach in its transport relations with thesethird countries as outlined in points 291- 331. Net-work development should form an important part ofthose relations in the context of both bilateral cooper-ation agreements and relevant multilateral arrange-ments. The work of the Economic Commission forEurope in this field, to which reference has beenmade above, will form a useful basis for further act-ion.

Environmental protection andconservation: improving theenvironmental performanceof transport

Introduction

148. As already indicated, the sustained growth intransport services and traffic volume 'has led to envi-

ronmental problems. These have so far been dealtwith on a case-by-case basis with the adoption ofCommunity legislation on particular issues such asmotor vehicle emissions, aircraft noise emissions andmarine pollution prevention.

149. However, growing concern about a number ofglobal environmental issues, particularly the 'green.house effect' , focused attention on the more wide-ranging effects of transport on the environment andthe need to adopt a global approach. Such anapproach was the basis for the Commission s recent

Green Paper on the impact of transport on the envi-ronment, I which presented a comprehensive assess-

ment of the overall impact of transport on the envi-ronment and suggested a strategy for the Com-munity s response. Likewise the fifth environment

action programme highlights transport as one of thekey sectors requiring integration of environmentalobjectives.

150. Assessments made so far show that transport isnever environmentally neutral, but that the effects onthe environment vary in scale and nature according

to the mode of transport. They take the form mainly

I COM(92) 46 final of20 February 1992.

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of energy consumption, operational pollution, land-take, congestion and the potential impact of the car-riage of dangerous goods.

Main environmental problems

Energy consumption and operational pollution

151. All power-driven transport consumes energyand causes operational pollution. The energy con.sumption of the transport sector represents 30% oftotal final energy consumption in the Community,virtually equivalent to that of industry. The opera-tional pollution caused by transport takes the form ofair, soil, water or marine pollution. In the case ofroad transport, the operational pollution takes theform mainly of gaseous emissions such as CO2, HC

x, carbon monoxide (CO), volatile organic com-pounds (VOCs) and sulphur dioxide (SO2), noise andvibrations. To a lesser extent it includes soil and,indirectly, water pollution. The railways cause noiseand vibrations and, indirectly, air, soil and water pol-lution. In the case of inland navigation, operationalpollution takes the form mainly of water pollutionand gaseous emissions. Shipping causes mainly mar-ine pollution, through accidental and operational dis-charges. Operational pollution in the case of aviationtakes the form primarily of noise, vibrations, gaseousemissions and, indirectly, soil and water pollution.

152. Road transport has the biggest environmentaleffect in terms of energy consumption and opera-tional pollution. Road transport consumes over 80%of the total final energy used in the transport sectorand contributes over 75% to its total CO2 output.

Congestion

153. Transport also leads to congestion where

infrastructure capacity is insufficient to cope withdemand, particularly at peak periods. Congestion notonly adversely affects the operational efficiency oftransport systems, it also increases energy consump-tion and operational pollution and thus exacerbates

environmental inefficiency. Congestion is most prev-alent for road and air transport, particularly in thecore regions as well as in and around large conurba-tions. Land-use

154. Transport does not only affect the environmentin terms of energy consumption and operational pol-

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lution, its infrastructure through land-take and intru-sion has a permanent and often irreversible impacton the environment. Again the impact varies accord-ing to the mode of transport. The total land"take ofroad infrastructure considerably outstrips that of therailways and other modes. At present the Communityroad network takes up 1.3% of the total land area ofthe Community, compared to 0.03% for the railwaynetwork. An important measure of land-take is land-use in terms of infrastructure needed to move onetransport unit, expressed in persons or tonnes offreight, over a given distance. Land-use is most effi-cient for air and sea transport due to the relativelysmall land-take for a given journey, followed by

inland navigation. It is less efficient for rail and leastfor road.

Carriage of dangerous goods

155. Transport also carries a potential risk for theenvironment as well as human life, in so far as thetransport of dangerous goods is concerned. Since thebulk of these goods are carried by sea and road, thesetwo sectors present the biggest potential impact forthe environment in the form of air, soil, water andmarine pollution.

Reactions to the Green Paper

156. The purpose of the Green Paper was to initiatea public debate on the issue of transport and theenvironment The Community s institutions took partin this debate as did the stakeholders: industry, trans-port users and operators, the consumers, environmen-tal protection groups, the social partners and regionaland local authorities. The outcome of this consul-tation provides an insight into how it should be pos-sible to integrate the environmental component intotransport policy with the participation of the differentactors.

157. The improvement of the environmental per-formance of transport cannot be achieved merely byCommunity legislation. It will require the participa.tion of all the stakeholders. A clear indication ontheir part of the need and willingness to participate inthis exercise and contribute to the objective was givenduring the public debate. The stakeholders in generalendorse the comprehensive assessment of the overallimpact of transport on the environment as well as thenew 'global' approach set out in the Green Paper.The transport industry as a whole nevertheless

emphasizes the key contribution of transport to

economic growth as well as economic and socialcohesion in the Community. Views differ, howeveras to which measures will best improve the environ-mental performance of the transport sector and, atthe same time, satisfy other important policy goals.

158. The reduction of operational pollution isviewed by all stakeholders as essential, with specialemphasis on the need to promote research into newtechnologies. Transport operators and industry stressthat the best available technology should be seen asthe best cost-effective technology or the best avail-able technology not entailing excessive costs. Envi-ronmental protection groups, consumers, local andregional authorities maintain the reduction of opera-tional pollution will not in itself suffice to improvethe overall environmental performance of transport.It will also be necessary to rationalise and managetransport demand by means of a traffic volumeoriented approach, including a shift towards environ-ment-friendly modes and collective transport and abetter utilisation of existing capacity. The develop-ment of multi-modal and combined transport, coastalshipping, the use of pipe-lines for freight transport

are viewed by industry and transport operators asways of inducing such a shift for the carriage ofgoods.

159. Limitation of land-take and land-intrusion isviewed as a key objective by the local and regionalauthorities, who stress the need to integrate transportin land-use and spatial planning.

160. The majority of stakeholders believe economicand fiscal instruments can be used in order to influ-ence .transport demand. While collective transportoperators, environmental protection groups, local andregional authorities advocate the use of environmen-tal charges and/or fiscal incentives in order to prom-ote or to provide funding for the more environment.friendly modes as well as collective transport, indus-

try warns against the possible negative effects offiscal measures on economic growth.

The Community's response: environmentprotection as an integrated themeof the CTP

161. The deliberations on the Green Paper haveaccordingly confl1111ed that if the future developmentof transport policy in the Community is to meet theobjective of ' sustainable mobility', not only will

transport need to respond efficiently to marketdemand, it will need to do so at the lowest possiblecost for society, taking fully into account environ-mental costs. This requires the pursuit of efficientpolicies in the field of pricing, including the internali-zation of external costs, infrastructure and the remo-val of market barriers as explained in points 93 - 117.

162. One of the key objectives of the CTP willtherefore be to correct environmental inefficienciesand improve the environmental performance of thetransport sector. This will require a full range of mea-sures and initiatives adapted to the needs and charac-teristicsof the different transport modes. They willalso need to allow for the progressive integration ofthe modes in order to derive maximum benefits,economic and environmental, from intermodal trans-port in the largest possible sense. Indeed many of theCommunity actions already discussed which concernthe proper functioning of the internal market, inter-nalization of external costs, intermodal competitionand complementarity as well as interoperability andintegration of systems and networks contribute at oneand the same time to both transport and environmentobjectives. They address the economic, operationaland environmental efficiency of the transport system.Protection of the environment is thus not accessory tothe CTP but one of its integral themes. In addition tothe actions already mentioned, attention will need tofocus on a broad range of measures that can contri-bute to the specific environmental efficiency of thedifferent transport systems. Some of these will b~most effectively taken at Community level, manyothers will be more appropriately pursued at nationalor local level.

Energy consumption and operational pollution

163. An essential element of the Community' s stra-tegy towards reducing pollution caused by the trans-port sector will be the setting of progressively higher

standards for gaseous emissions, energy consumptionand noise emissions for the different transport sectorsby means of proposals in accordance with technicaland technological progress.

164. In recent years the Community has made con-siderable strides in the establishment of strict emis-sion standards for motor vehicles. The standardscoming into force in 1993 , if strictly implemented andbacked up bY' efficient inspection and maintenanceshould lead to significant reductions in emissions ofthe main sources of air pollution from motor vehiclesover the next two decades. The introduction of pro-gressively higher standards in the coming years

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should help further reduce emissions though thereductions are likely to be proportionately less dra-

matic than those resulting from current legislation.Attention will also be paid to new developments intest procedures in order to take account of a broaderrange of conditions of use as well as conditionscloser to the actual driving situation.

165. Stricter inspection and maintenance require-ments and action on fuels have the potential of agreater impact on emissions as they are not depend-ent on turnover of the fleet as are standards on newvehicles. The promotion of R & D in the area of envi-ronment.friendly transport technology and manage-ment of operations will also make a contributiontowards updating and improving these and otherstandards. Advanced technologies .still have to bedeveloped in order to improve substantially the effi-ciency of present conversion techniques, for examplethrough the use of heat pumps and fuel cells. Theyare also needed to reduce the level of emissions, forexample, through the development of cleaner fossiltechnologies and advanced propulsion systems usingnew fuels.

166. While the main attention so far has beendirected at gaseous emissions from motor vehiclesthe problem of emissions from civil aviation willneed to be addressed more fully. Although civil avia-tion is responsible for a relatively small percentage ofgaseous emissions from all forms of transport, it isthe only mode where these emissions are directlyinjected at critical altitudes.

167. Discussion on the Green Paper has shown thatboth the stakeholders and the Member States viewimproved technical standards as essential in improv-ing the environmental performance of the transportsector and consider they should be taken at Com-munity level. Introduced at that level they will ensureconformity throughout the Community which .isessential in view of the implications for manufactur-ing industry and the free circulation of goods.

168. Standards can be .made more effective anddeadlines for their implementation can be acceler-ated, if they are accompanied by 'targets ' for both thevalues of the standards and the dates of implementa-tion. Fiscal incentives could further encourage indus-try to meet these targets as quickly as possible, whilefiscal penalties could be imposed on manufacturerswho do not meet the deadlines. For example, fiscalincentives could encourage the user and the operatorto opt for the technically most environment-friendlyvehicle or aircraft, for example, before a 'target dateand thus in turn put pressure on industry to achieve

the performance in question.

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169. Fiscal and economic instruments have a num-ber of advantages. They can be focused on the sourceof pollution and give equal treatment to differentsources and uses. They can be made equivalent inamount to the external costs associated with pollu-tion and are thus a particularly direct application ofthe principle that the polluter should pay through theinternalization of external costs. They are flexible inthe sense that .they can be used as an incentive or toavoid or limit certain behaviours. Tax incentives candirectly encourage the user, for example, to opt for arnore energy-efficient vehicle while a progressively

heavier charge on the user of less energy-efficientvehicles can discourage their use. The Commissionhas already adopted an approach of this kind in itsproposal aiming at reducing the excise duties on bio-fuels, as the new fuels allow a significant reduction inCO2 emissions. I Such instruments can easily takeaccount of new situations by a variation in the rate ofthe fiscal charge or benefit with almost immediateeffect to deal specifically with a local problem. Thusa surcharge on parking space in congested urban

areas can rapidly discourage the user from taking

his/her car into the city centre, particularly if tax

relief is available on attractively priced season ticketsfor weekday commuter journeys. Although the choiceof the user will thus be influenced and guided, the

full range of options remains available.

170. Given the financial impact of many such mea- .sures on manufacturing industry and on transportoperators, and the impact of some of them on thefree movement of persons and goods, Communityaction is required in order to prevent distortions ofcompetition. However, this should not exclude thepossibility of allowing scope for some differences inapproach at national or local level within a commonframework.

171. Such a global approach is particularly neces-sary in relation to the main greenhouse gas - carbondioxide. Transport is responsible for around 25% oftotal Community CO2 emissions and its share is ris.ing. On current trends CO2 emissions from the trans-port sector will rise by some 24% between 1990 and2000 and road transport alone will account for 30%of CO2 emissions by 2010. The Community has setitself an interim target of stabilization of CO2 emis-sions by 2000 at 1990 levels and a reduction in the

years beyond. Addressing the issue of reducing roadtransport s CO2 emissions will require in the first ins.tance considerable improvements in fuel efficiency.Fuel consumption standards could be made more

1 COM(92) 36 final.

effective and deadlines. fortheir implementation canbe acceleratedbyfiscatincentives.

172. However, in view of the expected growth in thecar fleets and therefore traffic, technical norms tar-geted towards reducing CO2 emissions will not suff-ice by themselves or in conjunction with fiscal mea-sures. For example, calculations for CO2 show thateven with a 40% increase in fuel efficiency in passen-ger cars by 2005, stabilization of CO2 would not beachieved by 2010. As regards other pollutants, suchmeasures may also prove to be only a partial solu-tion.

173. is mainly due to the fact that the initialbenefits of energy efficiency improvements will notbe sufficient to compensate for the projected growthin the fleet. The technical and fiscal measures willtherefore need to be accompanied by complementarymeasures addressing the demand for transport, parti-cularly that currently satisfied by the private car.These measures will also help to tackle problems ofcongestion.

Congestion

174. Optimal use of spare capacity in the lessencumbered sectors, as mentioned in points 93 - 117

will be essential in order to reduce the pressure in themost encumbered sectors. In addition, in the roadsector, transport authorities will need to take actionin order to deal more specifically with the congestioncaused by the use of the private car. Such actionshould be twofold in order to be fully effective. It willrequire promotion of collective and environment-friendly transport and at the same time the dissuasionof private car use.

Promotion of collective and environment-friendlytransport

175. Promotion of collective transport is a vitalcomppnent of efforts to integrate environmental

objectives into transport policy especially with regardto improving the urban environment. Public and pri-vate investment will be essential to promote collec-tive transport as an alternative to the private car. Col-lective transport systems which .offer a high-qualityserviCe, traffic management schemes which provideeasy passage and enhanced ac(;essibility for collectivetransport as well as attractive pricing and paymenttechnologies should encourage the user to opt for col-lective transport, particularly for urban and inter-urban journeys and more specifically during certain

periods of the day and certain times of the week andyear. This shift can be made easier by a proper link-up of the different stages of a journey: from point ofdeparture (home/office) to metro/bus stop to trainstation/airport to metro/bus stop to final destination.Such policy instruments could be supplemented bypublic information initiatives, providing the user withinformation, if possible, on-line, about available ser-vices, fares, frequencies and special facilities as wellas by guaranteeing frequent, reliable and rapid ser-vices.

176. Action to promote the use of environment-

friendly forms of transport such as the bicycle andthe electric car can also make a useful contribution.

177. ... Theroleof'national and, more specifically,loCal. authorities will be important in the use of theseinstruments in order to promote collective and envi-ronment..friendlytransport, whereas the Community'role will be more limited; Community action is never-theless)1istinedinsuchareasas introducing the citi-zens'

..

l1etworkand the quality charter as well asR & D into the development and use of innovativetechnologies, such as the electric car, telematics andtelecommunications. The Community contributionmight also include clarification of the scope for aidsfor urban collective transport, bearing in mind thelimited effect of such aids on trade between MemberStates and the soCial benefits derived from the wideruseofenvironment'-friendly forms of urban transport.The Community could further provide the frameworkfor the use of tax incentives which make environ-ment-friendly transport solutions more .attractive.Employers find/or employees could, for instance, begiven tax relief for collective tral1sp()rt fares. Suchincentives could be recovered through fisCal. deter-rents and charges introduced to discourage use of theprivate car in .sensitive areas.

Discouragement of private car use

178. The behaviour of the private car owner will beessential in reducing congestion. While leaving theowner the utlimate freedom of choice, it may never-theless be useful to dissuade himlher from makinginefficient use of his/her motor vehicle. The policyinstruments available for this purpose, particularly incertain circumstances such as at peak times duringthe week and for intra.city journeys, include trafficdemand management schemes which reduce accessi- .bility to the most congested areas at peak times formotor vehicles, such as parking policies, congestionpricing and use of traffic lanes for high"occupancyvehicles only.

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179. High occupancy rates are essential to the man-agement of road traffic volume. Increasing the occu-pancy rate of passenger cars will require a more envi-ronmentally conscious approach to its use. Informa-tion campaigns to promote carpools and othersimilar arrangements based on a change of attitudetowards the private car constitute the flI'St step. Suchapproaches could be reinforced by the introductionof economic measures, for example, a progressive

environmental charge on the annual mileage of pri-vate cars.

180. These measures are not primarily the Com-munity s responsibility but a common frameworkand guidelines for the use of economic instrumentscould contribute to their effectiveness while Com-munity involvement may be justified to ensure thecompatibility of technical systems used for trafficmanagement. These will in any event be kept underreview as indicated in points 93 - 117.

Land-use

181. Although land-use and spatial planning areprimarily a national and/or local matter, there is aCommunity dimension. This was examined in theCommission s report 'Europe 2000 - The outlookfor the development of the Community s territoryand will be further considered in the follow-up workto that report. At the national level, urban and indus-trial planning as well as regional development cancontribute to changes in travel patterns and thusreduce pressure points. Local authorities can alsocontribute by anticipating possible areas of conflictarising from transport development prospects, thusmaking it possible to take preventive action in theform of land-use rules, for example, in the case of air-port development.

Environmental impact assessment

182. Improvement of the environmental efficiencyof transport infrastructure requires careful assessmentof the environmental impact at the planning stage oftransport infrastructure, according to common cri-teria, with the possibility of alternative options. Whenassessing such options transparency of the methodol-ogy used for the cost-benefit analysis, includingexternal costs and benfits, of infrastructure invest-ment for the different transport modes would allowfor a better comparison of the different infrastructureoptions prior to investment decisions. A standardmethodology of this kind would provide a useful toolin assessing the external costs and benefits of a parti-

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cular project in the context of the development oftrans-European networks. It would also encouragethe responsible authorities to adopt more convergentapproaches.

183. Complementarity between transport modes

will be given effect by interconnection and interoper-ability of the different infrastructure networks whichin turn will contribute to the environment-efficiencyof the overall transport system.

Dangerous goods

184. The environmental performance of transportwill be further enhanced by the safer carriage of dan-gerous goods. Strict Community requirements forsuch transport will reduce the risks inherent to suchtransport. As outlined in points 185- 249 generaltransport safety measures, particularly in the maritimeand road sectors, will, however, need to be supple-

mented by Community initiatives geared specificallytowards the potential harmful effects of dangerous

substances in the .case of accidental discharge. How-ever, the organization .of rapid and efficient interven-tion in the case of accidents will necessarily continueto be done by national and local authorities.

Transport safety for the protection

user and non-user alike

General

185. The safety of transport, in the interests of userand non-user alike, is a major concern. of those res-ponsible for transport policy in the Community.Unsafe transport can have catastrophic effects anddespite improvements in safety standards in manyareas, the scale of the damage caused by unsafetransport is still very great.

186. The completion of the internal market in trans-port, together with the continuing integration of theeconomies of the Member States, necessarily entailsincreased transport movements across frontiers andwithin Member States other than the country of ori-gin of the transport operator. The need for appro-priate Community action on safety is thus underlinedand, for this reason no doubt, the Union Treaty con-tains a modification of the transport chapter in

Article 75 to make explicit for the flI'St time that theCTP should include 'measures to improve transport

safety . Safety requirements may fall in any casewithin the area of the Community' s exclusive powersfor example, because they affect the free circulationof vehicles or transport services. Where they do notfall within that area, the application of the subsidiar-ity principle may lead to the conclusion that .action isbest taken at other levels. But the amendment ofArticle 75 now makes it quite clear that, even in theabsence of an exclusive power, transport safety is amatter which should be addressed by the Communitywhen it is in a position to act usefully.

187. The main areas of concemin the field of trans-port safety relate to accidents on the road, at sea andin the air and, for all transport modes, to the move-rnent of dangerous goods.

Road safety: the current situation

188. Each year, accidents are the cause of about50000 deaths and more than 1.5 million injuries onthe roads of the Community. Since the Treaty wassigned, almost 2 million people have been killed inthe 12 countries which are now Community membersand almost 40 million injured. But road accidents donot only have dramatic consequences in humanterms; the economic cost is also substantial. For theCommunity, these losses can be valued at aboutECU 70 000 million a year from estimates thataccording to the method used, range between ECU45 000 million and 90 000 million.

189. At the Community level, the principal actionstaken so far in the area of road safety have been con-cerned with the harmonization of rules relating tovehicle construction, through the adoption of over

100 directives; maximum driver s hours; minimumtyretread depth for private cars; the periodic inspec-tion of vehicles including harmonized standards forthe testing of brakes; the general standards forobtaining a Community model driving licence; andthe mandatory wearing of seat belts including the res-training of children and speed limiters for heavy vehi-des. In addition, two important draft directives areon the Council table: harmonization of speed limitsfor commercial vehicles and maximum permittedblood alcohol concentration.

190. Nevertheless, even with the advances that havebeen made in technical and behavioural standardsthe road safety record of Member States varies signi-ficantly.

The fatal accident rate (expressed per kilometre oftravel) differs more than sevenfold as between themost advanced Member States and those with theworst figures. Moreover, the trend also varies consi-derably with some States improving their positionmuch better than others while in a few the situation isactually deteriorating. Using the same basis of mea-surement, the average risk on Community roads isnearly twice that in the United States: if it were possi.ble to attain the US level more than 20 000 deathsevery year could be avoided. The scope for improve.ment is clearly considerable.

191. The reasons for the differences in road safetylie in the measures taken to .enforce Community andnational road safety legislation, the degree and effec-tiveness of national legislation and the particularsocial, geographical, demographic and infrastructuralpeculiarities that exist between and within MemberStates. Of particular relevance, but difficult to quan-tify, is the variance in general behavioural character-istics. All of these factors have an impact on the typeof measure that should be envisaged at Communitylevel.

Scope for action and the Community programme

192. A Community programme on road safety willbe presented which proposes an integrated approachbased on qualitative targets and the identification ofpriorities. The process of harmonization by means oflegislation and the development and application ofcommon research projects continue to be the maintypes of Community action which will cover threemain areas: users ' behaviour , vehicles and infrastruc-ture.

Users

193. Human behaviour is the major factor contri-buting to road accidents: according to some estimatesin as many as 90% of cases. 1 The Community pro-gramme must therefore address these issues whilerecognizing that since human behaviour necessarilyreflects its social and cultural context, an approachshould be adopted which takes account of presentdivergences in their regard.

Report of the High-Level Group of Experts on a Euro-pean Road Safety Policy (Gerondeau report), February1991 , p. 24.

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194. It follows that in the field of legislation, theprogramme should concentrate on aspects of theproblem where action at Community level can makean effective contribution. Measures have alreadybeen taken. on driving licences and use of safetybelts, and have been proposed concerning speed lim-its for heavy vehicles and blood alcohol limits. Tocomplement these, consideration should accordinglybe given to basic rules of the road and road signs; theimprovement of the Community model driving lic-ence from the enforcement point of view; and mea-sures to protect vulnerable road users particularly.

195. Outside the legislative field, the Commissioncan also playa useful role, in conformity with thesubsidiarity principle, in providing input and supportfor education, including road safety education inschools, training of professionals and public aware-ness campaigns. Such activities are primarily the res.ponsibility of others, but Community support, parti-cularly through the compiling and presentation ofrelevant information based on experiences gainedthroughout the Community, would add considerablevalue to them at a lower cost than uncoordinated

individual efforts could achieve. In addition, research

and development actions in the application of tele-matics are demonstrating the potential of these toolsfor tutoring and assistance.

196. The objective of promoting so-called 'calmdriving' is a general target which can be reached inpart by such measures and also by combining themwith measures concerning vehicles and infrastructure.

Vehicles

197. There are some 50 basic directives harmonizingrequirements for vehicle characteristics, most which cover issues relating to vehicle safety. TheCommunity has now realized the definition of aEuropean whole-vehicle type-approval standard forpassenger cars ensuring that the legislative standardsfor cars in the Community are the same in all Mem-ber States. Once achieved, the next task is to harmon-ize standards for other road vehicles, notably lorries,buses and trailers.

198. Adoption of Community directives has made amajor contribution to the improvement of the safetyand environmental performance of vehicles. In thelight of continuing research and technical progress,

the existing directives will need to be adapted andcomplemented. Emphasis should be placed on vehi-cle crashworthiness in association with the use

lightweight structures. Safety should not be prejud-

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iced by the move towards smaller, lighter, more fuel-efficient cars.

199. Roadworthiness testing will ensure that thevehicle is as safe as cost-effective technology willallow. Periodic inspection will guarantee that vehiclesare adequately maintained to comply with safetystandards. Directives are currently in force for COm-

mercial vehicles and most Member States haveschemes for passenger cars. However, periodic testingfor passenger cars will not commence for certainMember States until 1998. It will be necessary todefine the performance of vehicles in service. Testingstandards are already on the Council's table forbrakes and emission testing. These Directives shouldbe adapted and complemented over time to take

account of new technology.

200. A particulary interesting issue with regard tonew technologies and telematics is the currentDRIVE research programme concentrating on vehi-cle and traffic management. The objective of the pro-

gramme is the improvement of road safety, transportefficiency and environmental quality. Future resultsof on-going DRIVE projects (Phase II) will equally

. contribute to the Community's integrated programmeon road safety. The results of this and other researchprojects can then be used as the basis for appropriatenew initiatives both on construction standards andon the development of a safer road network, as dis-cussed further below.

201. Technical standards applying to theconstruc-

tion and roadworthiness of vehicles, having as theydo important implications for the free circulation ofvehicles, are particularly suited to action at Com-munity level and indeed constitute one of its corefunctions.

Infrastructure

202. Road networks play an important role in roadsafety, as part of the total traffic system; improvingthe quality and capacity of road networks constitutesone of the most effective and 10nglasting exercises insafety improvement. The development of guidelinesfor the trans-European road network provides thecontext in which complementary measures can beenvisaged concerning the planning, design, construc-tion and maintenance of roads constituting the net.work and their associated facilities. Technical stan-dards on road signs and signals should form animportant part of this activity.

203. In parallel, a coordination role could be playedby the Community on a non-legislative basis by

means of an exchange of know-how and experienceor by means of recommendations (technical 'refer-ence documents'

204. To the extent that the Community, in the con-text of the development of trans-European networks,supports the development and modernization of theroad system, it is wholly appropriate that it gives fullattention to the measures needed to reduce the acci-dents on the network which at present constitute sucha terrible toll in both human and economic terms.

Maritime safety: the current situation

205. Most of the goods transported to and from theCommunity are transported by sea in ships flying theflags both of Member States and third countries.Transport by sea is indeed a global business and mar-itime safety accordingly raises issues having world-wide implications.

206. Every year ships continue to be involved in

accidents, many of them serious. Since 1986, on aver-age, 230 ships, or 1.1 million gross tonnes, have beenlost every year, involving an annual average loss ofmore than a thousand lives. The highest percentageof accidents involve general cargo (46%), fishing ves-

sels (26%), bulk carriers (6%) and tankers (5%). Alimited number of accidents to passenger ships inrecent years, because of their dramatic nature, has

contributed to growing public concern about theissue. Moreover, there are indications that the situa-tion could deteriorate in the near future. Approxi-mately 35% of all bulk carriers sunk in the last years were lost in the last two years, 74% of all ton-nage lost in 1991 was more than 15 years old, whilethe world fleet as a whole is ageing and many flagswith relatively good safety records, including severalCommunity flags, are losing vessels to other registerswith poorer records.

207. Directly related to ships' safety is the issue ofpollution of the sea, whether through operational oraccidental pollution or deliberate violation of inter-national rules. While the total amount of oil enteringthe marine environment has been decreasing over thelast two decades, it is still considerable and muchhigher in the Mediterranean than in other Com-munity waters.

208. Indeed it is striking that despite the existenceof international conventions designed to establish auniversal safety regime for the world's fleets, wide

variations exist in the safety levels actually achieved.The loss ratio of the fleet with the worst record is 114times the best. Even within the Community the worstlevel is 50 times the best. Statistics derived from portState controls show a ratio of deficiencies overinspections of almost 79% for the worst flag com-pared with 12% for the best. Community MemberStates have ratios ranging from 52 to 12%.

209. Most of the rules .and requirements for sea-going vessels are negotiated in the International Mar-itime Organization (IMO), a specialized agency ofthe United Nations, of which all Member States aremembers. The international framework developed bythe IMO is of fundamental importance to maritimesafety and, given the global character of the shippingindustry, must remain so. At the same time, it is clearthat the Community has an important role to playboth within and in support of the IMO to ensure thatships trading in Community waters respect commonstandards providing the effective guarantees of .safeoperation required by its geographical condition andthe demands of its citizens. Su~h Community actionis fully justified since it is clear, as shown by the datareferred to above, that in its absence adequate com-mon standards are not being observed in practice.Also the IMO requirements do not apply to passen-ger vessels on national voyages. The liberalization ofcabotage, opening domestic trade to ships from otherMember States, thus emphasizes the need for appro-priate initiatives which must of course also respectthe roles of other authorities: international, nationaland local.

The Community's programme: general principles

210. In order to ensure that Community .actions inthe field of maritime safety form a coherent and

effective ensemble, an approach is being developedbased .on three basic principles.

211. First, requirements should, to the maximumextent possible, be worldwide in their application.The IMO should therefore continue to play its pre-eminent role in the development and adaptation totechnical progress of international agreements thatwill provide the necessary guarantees. In exceptionalcases, higher standards for particular regions may bejustified but the general objective should be interna-tional .standards guaranteeing high levels of safetythroughout the world and at the same time avoidingdistortion of the conditions for competition betweenshipping companies.

212. Second, for the most part, the existing interna-tional agreements constitute a satisfactory framework,

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the main problem being the inadequate and unevenapplication and enforcement by States of the rulesthat have been agreed. Such divergences not onlyhave an adverse effect on safety, they can fragmentthe internal market for the maritime supply industry.Accordingly, the Community can make an importantcontribution by developing common approaches tothe implementation of IMO rules and to their properenforcement in relation to all ships in Communitywaters.

213. Third, a proper balance is needed between theroles and responsibilities of flag and coastal States.While the flag State has the primary responsibility forensuring that its ships comply with international stan-dards, both port and coastal States must accept theirresponsibility for ensuring that respect for those stan-dards is effectively controlled. In the absence ofeffective port State controls, given the global natureof the industry, international standards will inevitablytend to be better respected on paper than on the highseas.

214. The application of these principles leads to a

Community programme consisting of four maintypes of initiative: action to ensure convergent imple-mentation of IMO standards; reinforcement of portState control; the development of the modem infra-structure necessary to ensure that maritime safetyenters the electronic age; and standard setting, pri-marily in the IMO. The work of the Maritime indus-tries Forum has confl1111ed in its final report the desir-ability of action of this kind.

Convergent implementation of international standards

215. Action by the Community to ensure conver-gent implementation of IMO standards by MemberStates can be taken in a number of ways, for exam-ple, by ensuring that all Member States adhere toIMO conventions, by giving legally binding effect tointernational rules that are not mandatory or byCommunity directives adopting common interpreta.tions of rules that are framed as general principles.Where necessary, these could provide for thedevelopment of additional European technical stan-dards. These and other techniques should permitpresent divergences in safety levels to be reduced towithin acceptable limits.

216. In addition, the international standards couldalso be extended, as required, to vessels falling out-side the scope of the international conventions, for

example, passenger vessels on national voyages orcargo vessels below the IMO thresholds. This would

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ensure that the same safety requirements will apply

throughout the internal market.

Port State control

217. The reinforcement of port State controls, for

example, through the establishment of harmonized

criteria for priority inspections and detention, is

essential if substandard ships are to be eliminatedfrom Community waters. Action within the frame-work of the Memorandum of Understanding on PortState Control to which a number of European thirdcountries are parties, including within its Committee,could permit such measures to be given broader

European application.

Infrastructure

218. Finally, Community action to develop vesseltraffic management (VIM) using advanced technolo-gies on shore and on ship as part of the Communitytrans-European networks will enable maritime safetyin Europe to take full advantage of the possibilitiesof the electronic age and thereby achieve improve-ments which would be hard to realize in any otherway.

219. The action programme includes measures ineach of these main areas of activity as explained inChapter V. A more detailed presentation and explan-ation of all the measures under consideration will becontained in a specific communication on maritimesafety and pollution to be presented in the nearfuture.

Standard setting

220. Given that the IMO is the body responsible forsetting standards on maritime safety at internationallevel, it follows that the Community needs to ensurethat the IMO's work develops in a way which willproduce adequate solutions for ships sailing in itswaters. Action is needed so that coordinated posi-

tions can be taken favouring the adoption of neces.sary new rules and the modification of old ones. Pro-cedures will have to be developed which will allowthe Community to act effectively to this end whilerespecting the IMO' s methods of working and thetechnical character of much of its activity, as well asminimizing possible negative reactions to thedevelopment of a regional voice within the organ-ization. In this context, one of the areas on which the

Community should concentrate its efforts is measuresto reduce the risk of human error since this elementhas been recognized as the major cause of maritime

accidents.

221. Standard setting by the Community itself willbe limited to exceptional cases where efforts withinthe IMO have failed to produce a solution meetingthe Community s particular needs and where actionis imperative to guarantee an adequate level .ofsafetyin European waters.

Civil aviation: safe but perfectible

222. Civil aviation is recognized as being a very safemode of transport. Although there is no entirely satis-factory index to measure the absolute safety of air-craft operations, the number of fatal accidents andthe number of fatalities give a useful indication of thegeneral safety level. Fortunately, there is a verylimited number of accidents in the commercial opera-tion of civil air transport aircraft and, therefore, indi-vidual annual figures are to a certain extent meaning-less because .one major accident W.ould seriouslyinfluence the yearly result. For this reason, it is bettert.o consider the yearly average in the last decadewhich is 37 accidents accounting for 1 022 fatalitiesworldwide. I This figure has to be compared with themore than I billion passengers a year carried by theairlines of the world.

223. In addition, the level of safety varies consider-ably in different parts of the world. Europe has a verygood record in this field, being involved in onlyabout 10% of fatal accidents although it accounts forapproximately 34% of world air traffic. In the Com-munity alone, there were 22 civil air transport fatalaccidents between 1980 and 1990, an average of 2accidents a year compared with the world average of37.

224. However, the industry has expressed concernthat safety levels in commercial aviation, which untilnow have been constantly improving, are beginningto plateau out. This could mean that the number ofaccidents could start to increase proportionally to theincrease of traffic. It will therefore be necessary toexplore new avenues permitting the achievement ofsubstantial progress without unduly increasing bur-dens on operators, human factors being implicated inone way or another in about 80% .of air accidents. Inaddition, increased congestion on the ground and inthe air means that the space to spare over the safety

margins built into the system is reducing and coulddisappear. Safety will of course remain the fIrst prior-ity of the A TM/ ATC system but, if nothing is donethis will be ensured at the expense of the smoothnessand efficiency of operations.

225. Civil aviation also includes general aviationand aerial work which comprises such activities astraining, pleasure flying, business aircraft operations,aerial photography, crop spraying, medtcal evacua-tion and so on. However, these activities are far lessdeveloped in Europe than in some other regions ofthe world. For this reason and due to their diversity, itis very difficult t.o obtain reliable statistics and there-fore to obtain a correct picture of the safety level ofsuch aviation activity in Europe. As such activityincreases . which it probably will, it will be necessaryto ensure that its implications for aviation safety areproperly evaluated and, if necessary, anticipated.

The Community' s contribution to air safety

226. At the Community level, a number of mea-sures in the field of air safety have~lready beenadopted. They are in the fields .of accident investiga-tion, 2 mutual recognition of crew licences, 3 andtechnical harmonization. 4 There is also a proposalfrom the Commission in the field of A TM 5 which

has been transmitted to the Council and a number ofmeasures concerning accident investigations andincident-reporting have already been announced in acommunication from the Commissi.on. 6 In additionto those specific safety measures, other Communitylegislation will also indirectly have beneficial effectson safety, for example, the licensing of air carriers, asprovided for in the third package .of liberalization, 7 is

dependent upon the possession of an air operator

Source: World airline accident summary, published annu-ally by the United Kingdom Civil Aviation Authority.Council Directive 80/1266/EEC of 16 December 1980-OJL375 31. 12. 1980, p. 32.Council Directive 91/670/EEC of 16 December 1991

OJL373 31. 12. 1991 21.

Council Regulation (EEC) No 3922/91 of 16 December1991 OJL373 31.12. 1991

Proposal for a Council Directive on the definition anduse of compatible technical and operating specificationsfor the procurement of air lraffic management and sys-tems - COM(92) 342 final, 22 December 1992.

Commission communication to the Council on Com-

munity initiatives concerning air transport incidents andaccidents ~ SEC(91) 1419 final, 4 September 1991.

Council Regulation (EEC) No 2407/92 of 23 July 1992OJ L24O, 24. 8. 1992

, p.

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certificate, the criteria for which ensure that operatorsmeet certain safety standards.

227. Advances in technology will lead to the inte-gration of airborne pilot systems and ground airtraffic control into a single system .structure. This willprogressively utilize advanced satellite-dependentcommunication, navigation and surveillance capabil-ities. The introduction of this approach on a globalscale sponsored by the International Civil AviationOrganization will begin to affect Community airtraffic . management and industrial strategies in theimmediate future. The operational chMges couldbegin to be effective during the second half of thisdecade. A Community response to this challenge hasyet to be determined. Changes are necessary toensure that safety levels do not deteriorate as thenumber of flights increase. The need for more avail-able capacity will only be met by higher precisionsemi-automated air traffic control methods in areasof high traffic movements together with a reorganiza-tion of the .air space routeing systems.

228. Future Community action in the field of airsafety will be based on the work already achievedand on the perceived needs created by the politicaland technical evolution of this sector. The Com-munity should act accordingly to realize its safetyobjectives within the general international context ofcivil aviation and the work of the relevant interna-tional organizations such as the International CivilAviation Organization (ICAO), the European CivilAviation Conference (ECAC), the Joint AviationAuthorities (JAA) and Eurocontrol. In the .light of thebasic principles established by the ICAO, Com-

munity action should permit the application through-out Europe of the strictest standards reflecting theCommunity s level of technological progress. It willbe focused on measures which add value to actionsat both national and international level, primarily inthe fields of personnel licensing, technical harmoni-zation, air traffic management and control, reportingon accidents and incidents, research and develop-ment as well as analysis of the long-term challengesto air safety.

Licences

229. The Directive of December 1991 on mutualrecognition applied only to cockpit personnel. How-ever, given important differences in national require-ments, some of which do not meet ICAO recommen-dations, there is a need to arrive as soon as possibleat common requirements for the granting of cockpitcrew licences. Only these can provide the guarantee

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that the qualifications of the personnel will continueto meet acceptable standards. In addition, attentionshould be given to the possibilities of extending thesystem to other categories of personnel, for example

ground engineers and air traffic controllers.

230. The efficient management of common licen-sing requirements would be facilitated by the settingup of a support infrastructure including Communitycentral databases containing a wide choice of exami-nation questions submitted by Member States, medi.cal information on licence-holders and pertinent datafor licensed individuals such as type of licence, rat-ings, validity, and so on. Consideration will be givento the development of such systems.

Technical harmonization

231. The work already be~n by the Council Regu-lation of December 1991 will have to be pursued.Further regulations to to take account as appropriateof new requirements developed by the JAA will besubmitted to the Council for adoption.

Air traffic control

232. As explained further in Chapter V the objectiveof the Commission is to contribute to the develop-ment of a single unified system for air traffic manage-ment in Europe in association with Eurocontrol

ECAC and national authorities. Such a system willform a fundamental part of the Communityapproach to aviation safety.

Accidents and incidents

233. In its communication to the Council of Sep.tember 1991 , the Commission expressed its opinionthat a sensible air safety policy should be based .the early detection of weaknesses, needs and trendsconcerning the aviation system. The limited amountof data (accidents and incidents) available in eachMember State do not allow such an early detectionwhile large worldwide databases pose problems ofmanagement and correct interpretation of data; inparticular, they tend not to give adequate informationabout regional situations.

234. For this reason, Community initiatives in thisfield could be particularly beneficial and efficientand the communication contains a work programmeaddressing three items: mandatory incident reporting

systems, confidential reporting systems and accidentinvestigations.

235. The aim of the fIrSt item is to improve air saf-ety by bringing together the knowledge derived fromthe collection of incompatible occurrence reporting

systems existing in a number of Member States bythe setting up of a central database. The specificationdeveloped for this database could also be used to setup harmonized national reporting systems in theMember States having presently no such . system.

Each Member State would therefore have access to alarge source of valuable safety data. Common ana-lysis would permit deeper study of incident causes.The Joint Research Centre of the Community hasstarted to work on a pilot project which should befinished in 1994.

236. The setting up of a confidential reporting sys-

tem is considered by many safety experts as one ofthe most important steps to improve the knowledgeof human factors in aviation. As most of the acci-dents are human-factor related, this initiative ispotentially very promising. The realization of a proto-type system launched in September 1992 should lastbetween 24 and 30 months before final evaluation.

237. With regard to accident investigations, it willbe necessary to take a series of measures to guaranteethe availability of adequate investigation organiza-tions in each Member State and ensure that theywork effectively together. In this way, without exces-sive centralization, machinery can be developedwhich is at once of high quality and more cost-effec-tive than national authorities could achieve on theirown. The objectives would be: to adapt the existingnational regulations taking into account the proposedmodifications to ICAO Annex 13 to the ChicagoConvention; to ensure the availability of a basic acci-dent investigation structure in each Member State; toreinforce the national investigation bodies, establishcloser contacts between members of these bodies; toprovide the framework to allow improved coopera-tion, promote joint training of investigators; to studythe possible creation of an air disaster fund; and toimprove the dissemination of information.

238. Consultations with national experts havealready started on a draft directive setting up the fun-damental principles governing aircraft accident inves-tigations. The five basic principles contained in thisproject are: mandatory investigation of aircraft acci-dents and serious incidents; status of the technicalinvestigation sufficient to allow its unhampered reali-zation; a permanent and independent investigationbody; publication of a report containing recommen-

dations for corrective measures; and follow-up of theimplementation of those recommendations.

Reserach

239. Research is also an important aspect of an airsafety policy. Current activities include the EURETATLAS, Fanstic and GAAS projects in the field ofATe. There may also be a need from.time to time foradditional research in other areas, one of those beinghuman factors, where significant safety' benefitscould be obtained. The correct interpretation andanalysis of safety data would also require the study ofdevelopment of indices for safety measurement andrisk evaluation. Similarly, the statistical categorizationof aircraft operations and good data-gathering wouldalso be useful to help improve research material.

Preparing the longer-termfuture

240. The rapid political and technical evolution ofcivil aviation obliges us to look ahead to find outwhat would be the future challenges for air safety. Anumber of questions already appear which should beaddressed without delay. The following list is not atall exhaustive but could constitute a good start for aCommunity think-tank on civil aviation safety. Whatwill be the consequences of the evolution of civilaviation worldwide to a multilateral system for theresponsibilities of the aviation authorities? How dowe share the responsibilities when an accident hap-pens to a leased aircraft if the States of registry, of theOWner and of the operator are different? What influ-ence will the seventh freedom have on operationalcontrol? How shall we cope with measures to reducecongestion (reduction of horizontal or vertical spac.ing, use of parallel or convergent runways)? Whatinfluence will increasing automation have on humanbehaviour?

Transport of dangerous goodsby all modes

241. Recent years have seen a significant increase inthe volume and range of dangeous goods transportedby all modes. At a time when public opinion isincreasingly aware of the impact of accidents causedby the transport of dangerous goods on both manand the environment, great efforts need to be madeto devise measures to avoid accidents or at least con-tain their impact.

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Safety standards

242. At the international level, transport of danger-ous goods is regulated by international conventionsand agreements developed under the auspices ofinternational or organizations which draw on sourcesof considerable experience and expertise in this field.These have been successful in providing solutions tomany problems, solutions which have the addedmerit of broad international acceptance. I

243. However, in recent years, public concern overthe safe transport of dangerous goods has led to theconception of various Community measures toreduce risks inherent in this type of transport, irres-pective of modal choice. The overall aim is the trans-port of dangerous goods under the safest possibleconditions. Without prejudice to the role of the inter-national organizations responsible for the agree-

ments, the Commission began initiating Communityaction to support and supplement the existing inter-national legislation, whilst at the same time avoidingduplication of work. These efforts, were aimed atdealing with lack of transparency, inadequancy ofcertain provisions in the Community context and fre-quent recourse to diverging national safety standards.

244. Community action has been based on fouressential principles:

(i) the adoption at the Community level of measuresaimed at plugging the gaps in existing internationalregulations;

(ii) the legal enforcement of the international regula-tions at national level to achieve genuinely harmon-ized standards;

(iii) avoiding barriers to trade created by divergentnational technical standards;

(iv) ensuring legislation coherent with other Com.munity policies, for example, environment protec-tion, such as the safe containment of geneticallymodified organisms.

On this basis, measures have been adopted or pro-posed on topics as varied as training of personneltechnical standards and the monitoring and supervi-sion of movements of dangerous goods.

Future action

245. In the future, the Community should contri-bute to the work of responsible international organi-zations in the field and, at the same time, continue tosupport and supplement their efforts through the

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adoption of measures addressing its particular needsand circumstances.

Harmonization

246. At present, despite the measures adopted atinternational and Community levels, rules coveringthe transport of dangerous goods are far from beinguniform. International rules are applicable to interna-tional transport operations. While in some casesStates apply them to domestic movements, in othersthey do not. Under the cabotage freedoms being real-ized .under the 1992 programme, transport of danger-ous goods undertaken by non-resident operators willbe subject to provisions governing dangerous goodsin the host State. These may differ in some respectsfrom the provisions applicable both to domesticoperations in the home State and to operations underinternational rules. Accordingly it would appeardesirable to ensure that in future rules for domesticoperations are aligned with those applicable to inter-national ones. 247. Action is also necessary to harmonize certainrequirements which differ, depending on the mode oftransport being used, without there being any realjustification for the differences. Harmonization ofrules applying to the classification, labelling andpackaging of dangerous substances across the trans-port modes will not only simplify the life of thoseconcerned but make a significant contribution to theefficiency of intermodaltransport.

United Nations, New York, USA: ' United Nationsrecommendations on the transport of dangerous goods1957 (as amended); United Nations Economic Commis-sion for Europe, Geneva, Switzerland: ' European agree-ment concerning the international transport of dangerousgoods by road' 1959 (as amended); Central Office forInternational Rail Transport (OCTI), Berne, Switzerland:Annex I to Appendix B of COTIF, Annex I of CIMRegulations concerning the international carriage ofdangerous goods by rail' (as amended); InternationalCivil Aviation Organization, Montreal, Canada: 'Tech-

nical instructions for the safe transport of dangerousgoods by air' (as amended); International MaritimeOrganization, London, England: ' International maritimedangerous goods code' (as amended); InternationalAtomic Energy Agency, Vienna, Austria: 'Regulations forthe safe transport of radioactive material, safety series 6'1985 edition (as amended); Central Rhine CommissionStrasbourg, France: 'European Agreement concerning theinternational transport of dangerous goods on the Rhineinland waterway' (as amended).

248. Additional harmonization measures will alsobe needed in the fields of training and environmentprotection and common specifications of the tech-nical systems needed for the location and follow-upof dangerous loads.

Liability

249. The transport of dangerous goods is a high-riskactivity, which is reflected in the insurance prem~u

l1!srequired from those involved in the transport ch~1n Inorder to cover liability in the event of an acCIdent.Each Member State has its own legal practice, whichit applies to national transport covering civil liabilityfor damage caused by the transport of dangerousgoods. There is, as yet, no harmon!z:d . ~~pean-

wide legislation in place to cover Clvd liabIlity fordamage caused by dangerous goods in national orinternational transport. However, the inland Trans-port Committee of the United Nations Economic

Commission for Europe has recently (1989) con-

cluded a 'Convention on civil liability for damagecaused during carriage of dangerous goods by roa~,rail and inland navigation vessels' (CRTD). ThIS

Convention is based on strict liability with very highinsurance premiums, and shifts liability from the con-signor to the carrier involved in national or interna-tional transport. The Convention has not yet beensigned by a sufficient number of ECE States toaUowit to enter into force, thus leaving the European scenedotted with differing liability regimes. Careful consid-eration should therefore now be given to whether aCommunity initiative is needed to bring about amore uniform approach, bearing in mind also theCommunity interest in seeing operators from th~dcountries in particular from the European EconomIcArea and from Eastern and Central Europe, subjectto similar obligations as its own.

Social policy and transport

Community social policy and the socialdimension of the CTP: complementaryinstruments

250. From the outset, the European Community hashad as one of its general objectives improved work-ing conditions and an improved standard of livingfor workers. This objective was to be realized throughapplication of the Treaty s provisions and proceduressuch as those relating to the functioning of the com-

mon market and the CTP, as well as through the

particular provisions of the social policy title. The lat-ter included provision for close cooperation betweenMember States in the social field, equal pay, andemployment, promotion and training through aSocial Fund.

251. The European Single Act deepened thisapproach by prescribing the harmonizatio~ of he~lt~and safety conditions at work on the basIs of mIni-mum requirements (Article 118a) and creating anexplicit basis for a dialogue at European levelbetween social partners, including the possibility forcollective bargaining (Article 118b). In 1989, theCommunity Charter of the Fundamental SocialRights of Workers was adopted, subscribed to by aUMember States except the United Kingdom, togetherwith an action programme including initiatives in thesocial field.

252. On this basis, progress has been made in twocomplementary ways. On the one hand, social policyinitiatives have been taken which have had applica-tion in the transport field as they do in other sectors.

The Social Fund has a major role in promotingemployment and retraining workers; equalitybetween sexes; strict rules on child work have beenadopted; and standards on working and health con-ditions have been created. 1 Social partners have been

associated with Community decisions through JointCommittees and the Economic and Social Com-mittee. On the other hand, in the context of the CTPmeasures are on the way to be taken concerning theliving and working conditions of transport w~rkers as

part of the realization of the internal market In trans-port services. The opening up of national ~arkets tocompetition from other States has nec:ssItated t~eadoption of certain common standards In the socIalfield both to ensure that the essential interests ofworkers are protected in the new liberalized environ-ment and to eliminate certain distortions of the con-ditions of competition between transport enterpriseswhich could arise in the absence of standards fixedfor the Community as a whole.

253. When signing the Union Treaty in February

1992 all the Member States, except the United King.dom: concluded an agreement on social policy byway of a protocol which is to be implemented by

Council Directive 89/391/EEC of 12 June 1989 on theintroduction of measures to encourage improvements inthe safety and health of workers at work (OJ L 183, 2~. 6.

1989, p. 1), and individual Directives within the meanIngof Article 16(1) ofDirective 89/391/EEc.

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recourse to the institutions, procedures and mechan-isms of the Treaty. Among the main provisions ofthis agreeement are the consolidation of the Charterof the Fundamental Social Rights of Workers; therole of primary importance given to social partners inthe consultation process leading to the option of leg-islation with social implications; development ofmeasures for disabled persons; increased andimproved vocational training, including the integra- .tion of people from the labour market; primacy of

collective bargaining over legislation in some areas;and respect for the principle of subsidiarity. The pro.tocol and the social policy agreement are withoutprejudice to the provisions of the Union Treaty or

fortiori to existing Treaty provisions relating to socialpolicy or the CTP.

254. Initiatives will be developed on the basis of thesocial policy provisions of the Union Treaty and, insome cases, the social policy protocol and agreement.These initiatives may well have application in thetransport field. In addition the proper functioning ofthe internal market in transport services will almost

certainly call for further action affecting the living

and working conditions of transport workers, some ofwhich are considered further below. At this point, itsuffices to note that in responding to social pressures,some of them flowing directly from the liberalizationassociated with the completion and functioning ofthe internal transport market, authorities at nationalor regional level will find it difficult to act alonewhere their unilateral initiatives could prejudice theprice competitiveness or operational flexibility oftheir transport enterprises relative to those from otherMember States.

255. The two sources of Community social mea-sures concerning transport, and the new dimensionadded by the Maastricht protocol and social policyagreement, will require particular attention to be paidto the type and content of initiatives to be proposed.First, it is important that measures proposed on thebasis of general social policy provisions take properlyinto account the specific character of transport activi-ties such as the varying operational conditions andrequirements of different types of transport systemand their inherently mobile character. Second, on theother hand, measures taken in the context of thefunctioning of the internal market in transport ser-vices should reflect and be fully compatible with theCommunity s generally applicable social policies.Third, when social measures will affect the function-ing of the transport market, particularly the competi-tive conditions of transport enterprises, they shouldbe adopted whenever possible by the Community asa whole. S. 3/93

Principal areas of activity

256. Community action to protect and promote theinterests of transports workers can be convenientlyconsidered under four headings: the establishment ofa social dialogue and collective bargaining; measuresconcerning access to the different professions andtraining; actions related to living and working condi-tions; and measures that protect and promoteemployment.

Social dialogue and collective bargaining

257. Joint committees attached to the Commissionmost of which are recently created, have alreadyproved to be a valuable complement to the Econo-mic and Social Committee. Five of the nine existingcommittees are in the transport sector (rail, roadinland waterways; maritime and civil aviation) and anew one is in the course of being established (ports).The transport joint committees provide a forum inwhich representatives of employees and employerscan deliberate with each other and with the Commis-sion on the formulation of policies concerning theirsector and issues arising from their implementation.The contribution that they can make is particularlyimportant in relation to matters directly related tosocial issues such as access to the profession, training,living and working conditions and employmentpromotion and protection. In such areas, the achieve-ment of broad consensus on how to approach a parti.cular problem could make a vital contribution to therapid adoption of Community legislation which oth-erwise would be difficult to achieve.

258. Indeed dialogue between the social partnerscan, if both partners consider it desirable, lead tosolutions based on collective agreement alone(Article 118b and article 4 of the Agreement on SocialPolicy). Such solutions constitute an alternative tocurrent legislative procedure and are an example ofdecisions being taken closer to the citizen. This iswhy the Commission is reflecting on arrangementswhich would enable the implementation of consul-tation, dialogue and possibly negotiation proceduresforeseen by the agreement concluded on 31 October1991 between the European Trade Union Confedera-tion (ETUC), the Union of Industrial and EmployersConfederations of Europe (UNICE) and the Euro-pean Centre of Public Enterprises (CEEP), and bythe Protocol on Social Policy annexed to the UnionTreaty.

259. Accordingly, the Commission intends toensure that, in the transport field, the social partners

are fully involved in the preparation of initiativeshaving social implications. Where joint committeesexist, they will be consulted with a view to develop-ing solutions supported by as broad a social consen-sus as possible. If it should appear that arrangementsby way of collective agreement are feasible, it willseek to give preference to such solutions. WhereCommunity legislation is necessary in order to ensurethat relevant national regulations are amended, it willnevertheless seek to base the substance of its propo-sals on any relevant agreement of the social partners.This approach is currently being followed, for exam-ple, in relation to the question of flight-time limita-tion in the civil aviation sector, a matter consideredfurther below.

Access to the professions and training

260. In order to facilitate competition betweentransport operators and to allow workers in the trans-port sector to benefit from their libertypnder theTreaty to work in other Member States, measureshave already been taken to ensure that qualificationsare mutually recognized by the authorities of theMember States. In addition, given the risks inherentin many transport activities, minimum standardshave been established to ensure that those engaged inproviding transport services are sufficiently qualifiedfor their tasks.

261. A beginning was made with the adoption ofmeasures for the road haulage and passenger indus-tries. I This was followed by measures applying toinland navigation; 2 and to cockpit crews in the fieldof civil aviation. 3 Further initiatives are alreadyunder consideration in this field, notably in relationto flight crews, and also as regards qualifications ofseafarers in the maritime sector.

262. Parallel to these measures in the transport fieldthe Community has been developing its general sys-tem for the mutual recognition of diplomas. 4 Thissystem applies to the regulated professions in theabsence of specific Community measures such .those on cockpit crews. The general system should

permit many problems, notably those of mutual

recognition, to be addressed without the need for fur-ther legislative provision at Community level. How-ever, for a number of reasons, the general system willnot provide a complete answer to all the problemsarising in the transport sector.

263. In particular

, .

as explained above, the risks

inherent in transport activities continue to pose parti-cular problems for transport authorities. The human

factor is still identified as a significant contributingfactor in transport accidents, although in significantlydifferent proportions from mode to mode. The issueof raising standards in the interests of improved saf-ety, particularly the weaker ones, cannot be avoidedand it clearly makes sense for any such activity to beundertaken at Community level so that new stan-dards are applied in a coherent manner in all Mem-ber States, necessary allowance being made for thetime needed to implement them.

264. Indeed higher standards are not only neededfor safety reasons but also .because of profound adap-tations of the transport sector associated with the

important changes already discussed including therealization and development of the internal transportmarket and the integration of transport systems andservices. To meet the challenge of sustainable mobil-ity in a liberalized Community-wide market, trans-port enterprises will have to adapt themselves in avariety of ways, for example, to provide efficientflexible service in the context of increasingly inte.

grated systems using advanced technologies. To facil-itate this process of adaptation transport authoritieswill need to address the question of the qualificationsand training needed to respond to this challenge, notleast in the case of smaller transport enterpriseswhich will find it more difficult to make the neces-sary changes. In addition, action should be taken tofacilitate the retraining of workers affected by thedisappearance of certain activities and their adapta-tion to new technologies. Much of the action neededin this context is undoubtedly best taken at levelsother than that of the Community. But given that theproblem is shared by all Member States, if in differ-ent degrees, and the risks that entirely uncoordinatedaction entail for the proper functioning of the inter-nal transport market and trans-European networksthe continued development of a Community frame-work and possibly accompanying measures areclearly justified.

Respectively, Council Directive 74/5611EEC of 12 Nov-ember 1974 (OJ U08, 19.11. 1974

, p.

18) as modifiedand Council Directive 74/562/EEC of 12 November1974 (OJ L 308, 19. I I. 1974, p. 23) as modified.Council Directive 87/540/EEC of 9 November 1987 (OJ

L322, 12. I I. 1987, p. 20).

Council Directive 911670/EEC of 16 December 1991 (OJ

L373, 31.12. 1991 , p. 12).

Council Directive 89/48/EEC of 21 December 1989 (OJ

L 19, 24. I. 1989, p. 16), completed by Directive 92/511EEC of 18 June 1992 (OJ L209, 24. 7. 1992) on thesecond general system, coming into force on 18 June1994. In the meantime, Member Sta.tes must in any eventrecognize qualifications on the basis of the case-law ofthe ElJI'opean Court of Justice.

S. 3/93

265. As to priorities, the structure of the road-hau-lage industry suggests that action is most urgent inthat context, as confl1111ed by recent events in severalMember States indicating that the current situation is

giving rise to unacceptable stresses.

Living and working conditions

Working, operating and other times

General

266. Rules and practices concerning working, oper-ating, duty, waiting and rest times raise issues of var-ying complexity in the transport field due to theparticuiar characteristics of different transport activi-ties. The mobility of many transport workers whichmay take them far both from home and the transportestablishment for which they work; the considerablelength of some voyages; the irregular nature ofothers; the particularly high level of alertness andconcentration needed to perform certain key func.tions are some of the important factors which need tobe taken into account. At the same time, a number ofpressing considerations have led policymakers toregulate these matters. Safety in the interests of boththe public and the workers themselves has been a

prime motivation. The elimination of distortions ofcompetitive conditions between operators has beenanother, while those countries which limit workingtime as a matter of principle for reasons of general

social and employment policy seek to apply the sameapproach to the transport sector in so far as they can.

Road

267. At the Community level, in the road-transportsector, common rules on driving hours and restperiods have existed for more than 20 years. At pres-ent, Council Regulations (EEC) Nos 3820/85 on theharmonization of certain social legislation relating toroad transport I and 3821/85 on recording equipmentin road transport 2 contain the main Communityprovisions in this area. In 1988, Council Directive88/599/EEC introduced some standardization ofcontrol procedures for the implementation of thesetwo measures. However, there is evidence thatobservance of these rules is far from adequate even inthose States where controls are relatively strict, whilethe frequency and intensity of the controls varygreatly between Member States as does the level ofsanctions imposed on offenders.

268. In other sectors the Community has not so farenacted legislation.

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Rail

269. As regards railways, working conditions ar~defined at the national level. In many cases thenational railway companies are authorized to definesuch rules and often railwaymen have the status ofcivil servants as public employees. Given that therailways function as highly structured networks, andalso normally as monopolies, the issue of workingand other times has not attracted the same attentionas it has in the road sector and a need for any specificCommunity intervention has not yet been felt.

Inland waterwa~

270. Under the auspices of the Central Commissionfor Navigation on the. Rhine, rules have come intoforce on maximum working hours for crews. ForCommunity waterways other than the Rhine, no suchrules exist. Operators have recently expressed interestin seeing uniform rules adopted rather than a patch-work of national ones.

Civil aviation

271. Work and rest times are currently governed bynational legislation on collective agreements. Theprovisions vary considerably between Member Statesand there exists to date no satisfactory internationalarrangement. The Chicago Convention only requiresStates to formulate rules limiting the flight time andflight duty periods of flight-crew members but doesnot seek to set any standards. In recent years thisissue has emerged as a matter of concern, a concernno doubt stimulated by the new competitive pres-sures beging generated by the liberalization of thesector. This has led to discussions of possible initia-tives both within the Joint Aviation Authorities andthe Joint Aviation Committee.

Maritime

272. In the maritime sector, specific problems arisebecause of the nature of the activity, particularly thelength of many voyages. The matter has been dealtwith by national legislation, collective agreementsand individual employment contracts or some combi-nation of these. An International Labour Organ.ization Convention 3 failled to come into force due toan insufficient number of ratifications.

I OJ L370, 31. 12. 1985, p. 1.2 OJL370 31.12. 1985

Convention No 109 of 1958.

The Community's general regime on working time

273. In 1990, as part of the realization of the SocialCharter, the Commission proposed the adoption of adirective on working time for all economic sectors ofactivity including transport. I Given the specific prob-lems arising in the field, the Council has indicatedthat road, air, sea, rail and inland waterways will beexcluded. The Commission has indicated that itreserves the possibility to present proposals as soonas possible for the different transport sectors taking

account of their particularities.

Future Community initiatives

274. The issues raised by requirements on workingand other times accordingly need to be examined foreach transport sector. Three main aspects must betaken into account: the specificity of each of the sec-tors, the importance of safety and .the maintenance ofa high level of social protection.

Road

275. As regards the road sector, both the structure ofthe industry and the ineffectiveness of the presentregime on driving time suggest that .a new Com-munity approach is needed as a matter of urgency.

276. The industry is characterized by low barriers toentry leading to a relatively large number of smalloperators trading alongside a smaller number of lar-ger ones. The liberalization of the market at a timewhen a general decline in economic growth isdepressing demand is raising the competitive pres-sures on all operators, particularly the smaller oneswhether they are working directly for their ownclients or sub-contracting. The pressures on operatorsand drivers not to respect driving and rest times hasbecome much greater.

277. At the same time, a number of factors can beidentified which explain the inadequacy of the pres-ent regime. 2 These affect in particular, enforcementof the rules.

278. First, the rules are too complex for easy appli-cation with current technology, whether by control

. authorities or indeed operators or drivers themselves.In order to know whether someone can drive lawfullyit may be necessary to consult records going backseven days or even longer. Interpretation of the tacho-

graph discs needs considerable expertise and experi-ence and this lack of immediate transparency contri-

butes to temptations to manipulate the system. Asimplification of the rules, combined with the appli-cation of new technology to provide unambiguous,secure data rapidly, would constitute a considerablestep forward. Such a development would be furtherenhanced if the new technology provided additionalinformation and service to operators and driversalike.

279. A second area of weakness is the limited anduneven efforts made by competent authorities to con-trol operators. This is in part due no doubt to thecomplexity and difficulty of the task as explainedabove. It is also due to resource constraints, a rela-tively low priority given to the activity by comparisonwith other law enforcement, different degrees of will-ingness to confront the economic and politicalconse-quences of stricter enforcement and, in some caseslack of technical capacity in the responsible adminis-trations.

280. The prime responsibility for improvingenforcement must continue to lie with authorities atnational and local levels. The Community should notseek to become directly involved in enforcement inthis area as it will not be able to act more effetivelythan the authorities at national or local level How-ever, in addition to the simplification and technicalmodernization of the Community regime, it maybeable to contribute indirectly to more uniform andeffective enforcement regimes in the Member States.Initiatives might include action to bring closertogether national approaches to control procedures

and sanctions. In addition to harmonization mea-sures of the traditional type, though focused on pro-cedures and sanctions, other initiatives might also betaken, for example, to bring together national offi-cials concerned in common training programmes orto organize through an exchange mechanismdevelopment programmes whereby a small group ofselected national inspectors could disseminate bestpractice throughout the Community.

281. The introduction of effective control proce-

dures in relation to driving time, particularly neces-

sary for long-distance journeys, and, at the sametime, the clarification of rules concerning the dura-tion of working time, are priority tasks. Given themobility of drivers, controlling working time poses

I OJ C254, 9. 10. 1990.

Study 'Pour line meilleure mise en reuvre des reglementssociaux dans Ie domaine des transports par route , Euro-pean Institute of Public Administration, Maastricht, 2. 12.1987.

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considerable difficulties. The operation of the vehicleand the presence of a particular driver when it isbeing used can be controlled technically and muchmore effectively than is the case at present. If this canbe achieved in the context of a simpler regulation ondriving time, it will then be easier to evaluate howbest to approach the additional dimension of work-ing time.

Railways

282. While there has been no pressing need for act-ion in this sector in the past, the moves towards pri-vatization in SOme Member States and the opening ofthe n~twork to new operators are changing the econo-mic environment for railway workers. This evolutioncalls for a careful examination of the need for a

Community initiative and its possible content, inclose consultation with concerned organizations, inorder to ensure a high level of social protection.

Civil aviation

283. Once the current discussions within the Joint

Aviation Authorities and the Joint Aviation Com-mittee have produced some conclusions on flight andworking time, the Commission, also in close consul-tation with all the organizations concerned, willdecide on the initiatives that it intends to take.

Maritime

284. In the maritime field, discussions will be

undertaken to assess the need for Community inter-vention and its possible form and content. The parti-cular characteristics of the industry will have to befully explored, in particular, its need for flexibility tomaintain its competitiveness with third country oper-ators and so sustain a high level of employment.

Working conditions: occupational safety and health

285. Improvement of the occupational safety andhealth conditions in the transport sector is the subjectof a proposal for a Directive to. be submitted by theCommission to the Council. I It prescribes minimumsafety and health requirements for transport activitiesand workplaces on means of transport. If adopted bythe Council, this directive, along with the generalDirective on the introduction of measures to encour-age improvements in the safety and health of workersat work (89/39l/EEC), 2 will consolidate andimprove the prevailing conditions in the transportsector generally. It is foreseen that this Directive will

S. 3/93

apply from 1995 to new vehicles with a derogation ofthree years for old ones; due to this extended timeta.ble and to the complexity of its rules, proper enforce-ment will be the major priority. A new analysis ofoccupational safety and health conditions in the

transport sector will then be made on the basis of theexperience provided by the application of the Direc-tive.

Transport for people withreduced mobility

286. In addition to policies to protect and promotethe interests of workers, social policy also includesmeasures in favour of those with reduced mobility.

287. On 16 December 1991 , the Council adopted aResolution concerning a Community .action pro-gramme on the accessibility of transport to personswith reduced mobility, 3 requesting the Commissionto 'formulate a Community action programmeincluding proposals for concrete measures designedto improve accessibility to all modes of public trans-port and to the access points thereto , while takinginto account the principle of subsidiarity.

288. Indeed, most initiatives in this area can be bet-ter taken at national, regional or local level. Coopera-tion at Community level, as well as the adoption ofcertain common standards or accessibility to trans-port, could nevertheless help to improve transportconditions for people with reduced mobility .actions within the framework of the telematics andTIME research programmes are already demonstrat-ing.

A threefold approach will be used in order to attainthis objective: Community cooperation on informa-tion programmes; where the Council asks for themproposals for legislation on minimum standards; andresearch programmes which can make a contributionto this area.

Protection and promotionof employment

289. In the context of the Community policy toencourage maintain and increase the Communityfleets under Member States' flags, the Commission

I COM(92) 234/3.2 OJ L 183, 29. 6. 1989, p. 1.3 OJ C 68, 16. 3. 1991.

has elaborated a number of positive measures aimingat both restoring the competitive position of theCommunity shipping industry and increasingemployment of EEC nationals. The main element ofthese measures is the creation of a Community regis.ter (EUROS) which would provide for incentives toshipowners registering their ships in this register. Spe-cific provisions have also been proposed requiringthat all officers and at least half of the rest of thecrew members to be employed on BUROS-registeredvessels should be EC nationals. The Commission iswell aware of the problem of the .declining number ofCommunity seafarers employed in the Communityfleets and h'aS put it as a priority to reverse this nega-tive .situation by taking all possible action anddevelop further ideas in the context of its ' positivemeasures ' policy.

290. As regards the Community inland waterwayfleet, the Commission is considering measures toimprove its competitive position compared to othertransport modes. These should improve its competi.tiveness and so help maintain employment in the sec-tor.

Strengthening the externaldimension of the CTP

The external dimension: progress to date

291. Given the international character of manytransport activities, the Community Treaty from theoutset envisaged that the CTP should have an exter-nal dimension. The progressive completion of theinternal market in transport services has emphasizedthe need fora Community approach to transportrelations with third countries, while the defence andpromotion of the Community s commercial interestshave also increasingly called for common action. Pro-

gress in the realization of these objectives has beenmixed.

292. On the one hand, considerable progress has

been achieved, though more in some areas thanothers.

293. The international facets of sea transport are atthe very heart of the Community' s shipping policy asdeveloped up to now. A consultation procedure onrelations between Member States and third countriesin shipping matters and on action in international

organizations was adopted in 1977 (Regulation(EEC) No 587/77). In 1979 the UN Liner Code wasimplemented through the Brussels package (Regula-tion (EEC) No 954/79). Then, in 1986, four Regula-tions were adopted, covering: freedom to provide .ser-vices between Member States and third countries(Regulation (EEC) No 4055/86); the application ofthe competition rules of Articles 85 and 86 to mari-time transport, a matter of considerable importanceto shipping relations with third countries, for exam-ple, in connection with the functioning of confer-ences (Regulation (EEC) No 4056/86); unfair pricingby third-country shipowners (Regulation (EEC) No4057/86); and actions of third countries restrictingaccess to cargoes in ocean trades (Regulation (EEC)No 4058/86). The third and fourth Lome Conven-tions contained specific articles on maritime trans-port, in particular, relating to the harmoniousdevelopment of efficient and reliable shipping ser-vices based on the principles of unrestricted access totrade on a commercial basis at competitive rates.Indeed most Community association and coopera-tion agreements contain specific transport provisionshaving application to the maritime sector. Provisionsrange from reference to cooperation in transport tospecific commitments on freedom to provide servicesand access to trade. Finally the EUROS proposalsstill under active consideration by the Communitylegislative institutions, have been designed primarilyto address the competitiveness of the Communityfleets in relation to its main third-country competi-tors, particularly flags of convenience.

294. In the field of inland transport, negotiations ontransit for heavy goods vehicles were successfullycompleted in 1991 with Yugoslavia and in 1992 withAustria and Switzerland, though of course the formeragreement has not had a chance to realize its objec-tives. In view of the political situation there newsolutions must now be found.

295. In civil aviation, a consultation procedure onrelations between Member States and third countriesand on action in international organizations wasadopted in 1980. Furthermore, the recent agreementwith Sweden and Norway extends the Communityexisting internal regime to those countries.

296. More generally, the entry into force of theagreement on the European Economic Area will inprinciple ensure the application of the Community'legislation on the internal market in transport servicesin all countries concerned and will ensure theirinvolvement in the preparation of new Communitylegislation. The agreements concluded or being nego-tiated with the countries of Eastern and Central

S. 3/93

Europe establish transport as one of the main areasfor further cooperation. The Pan-European TransportConference in Prague, organized jointly by the Com-mission and the European Parliament in October1991 , underlined the need for concerted action in thebroader Europe with a view to the integration of itstransport markets and the development of the corres.ponding trans-European networks. Transport hasalso emerged as., one of the main themes in the var-ious assistance programmes for these countries, forexample, PHA.RE and T ACIS. 1

297. Progress has also been made in developing theCommunity s role in international organizations andthe multilateral agreements for which they are res-ponsible. Important examples are the European Con-ference of Ministers of Transport and, in the UNframework, the Economic Commission for Europe.Under the working arrangements established withboth organizations, the Community has carried out asatisfactory dialogue with third countries. In theGA TIcontext, the Commission is negotiating onbehalf of the Community and its Member States forthe possible liberalization of important aspects oftrade in transport services in the context of the Uru-guay Round.

Current problems

298. A number of important problems remain to besolved.

299. First, the Member States have over a period ofmany years developed a system of bilateral agree-ments with third countries regulating transport rela-tions. These agreements deal with a whole range ofvital economic issues such as market access, includ-ing access of third-country operators to the Com-munity' s internal market. Little progress has beenmade in replacing these bilateral arrangements withappropriate agreements between the Community andthe third countries concerned.

300. Moreover, most of the existing bilateral agree-ments on issues like market access have been con-cluded by Member States on a basis of reciprocityand often include nationality clauses which requireprivate parties to violate the Community s competi-

tion rules or are otherwise incompatible with full anduniform application of Community law. Such clausesare contrary to Community law since they violate theprinciple of non-discrimination on grounds ofnationality and limit the scope of the internal market

S. 3/93

in transport services. They are also not conducive tothe economic efficiency of transport operations.These agreements, therefore, will have to be amendedor terminated. However, it may well be the case thatsuch action will have commercial implications andwill therefore need to be addressed by the Com-munity.

301. Member States have resisted the exercise of

Community competence in this area and continuedto negotiate new and modified agreements in viola-tion of Community law. They have done so even insituations where the Commission has already seizedthe Council of the problem, for example, in the fieldof inland navigation. By continuing to act separately,they have not merely failed to exploit the bargainingpower of the Community but have allowed situationsto develop in which some third countries have beenallowed to divide and rule. This is perhaps bestexemplified by the route maps in Annex II indicatingthe different ways in which US and Community aircarriers have been allowed to develop traffic-generat-ing networks on either side of the Atlantic.

302. Likewise, in some international organizationsit has proved difficult to develop the Communityrole, the difficulties varying depending on theorgani-zational context. For example, in the IMO andICAO, Member States have on occasion resisted thenatural development of the Community's current sta.tus as an observer to keep pace . with developingCommunity competence. This has led to friction andmade it difficult for the Commission to ensure thatwork in those forums takes proper account of devel-opments in the Community. This is all the more ser-ious in areas like maritime safety where a consensusexists that the International Maritime Organization(IMO) should be the main, even almost exclusive

forum for establishing the level of regulation to applyto cross-frontier transport operations, including thosebetween the Member States. Given the important roleof IMO worldwide on maritime safety, arrangementshave to be found which permit the Communityinstitutions to participate fully in setting standardshaving a direct effect on the functioning of the inter-nal market and the safety of ships within the Com-munity.

303. As a consequence of these difficulties, the fulleffect of CTP instruments is limted by the absence of

I ECU 50 million has been committed by the 1992PHARE programme in the transport sector. A large com-ponent of the 1991 TACIS programme is in the field oftransport to which ECU 53.5 million was committed.

a parallel and coherent dev~lopment of the externaldimension of the Community s policy of internal lib-eralization. This applies to .all transport sectors but ithas been particularly obvious in the maritime sectorwhere the basic objective of freedom of access tointernational trade has yet to be fully achieved. Whilea more stringent application of Community competi-tion rules to this end may be able to compensate tosome extent, it needs in any cClS~ to be comple-mented by complementary action in the field ofexternal relations if it is to be truly .effective andavoid creating undue friction with the third countriesconcerned.

304. Finally, the entry into force of the EEA Agree-rnent may in some cases require, if not the harmoni-zation of existing policies of the different EEA part-ners, at least some coordination with that of theCommunity. Should the need .arise in the transportfield, it will be the easier to meet to the extent that theCommunity will have already prepared, or at leastbegun effectively to prepare, a clear policy as to itsexternal regime.

Community powers in the external field

305. The Court of Justice (Opinion 1/78) has heldthat the notion of 'commercial policy' referred to inArticle 113 of the Treaty is a dynamic one and fol-lows developments in international trade. I The Com-mission has accordingly concluded that measuresconcerning trade in services form part of commercialpolicy and therefore fall under Article 113 of theTreaty. Consequently, it concluded that the Com-munity has exclusive competence to conclude bila-teral or multilateral commercial agreements on ser-vices, and notably on transport, that include rules onmarket access and capacity, traffic rights, tariffs orother measures accompanying these rules. This

indeed, is the approach advocated in recent propo-sals to the Council and is consistent with that alreadytaken within the framework of the Uruguay Round.

306. Earlier the Community had begun to exerciseits external competence based on Articles 61 , 75 and84(2) of the Treaty. The European Court of Justiceheld in Case 22/70 that as the Community developscommon internal rules it also acquires authority overexternal negotiations which might .affect these com-mon rules (ERTA doctrine). 2 Later, Opinion 1/76 ofthe Court of Justice constituted an important step inthe definition of the external powers of the Com-

munity, declaring that if the Community has an inter-nal competence to achieve a specific objective, it

implicitly disposes of the exclusive external compet-ence on that subject as far as such an ext~mal exer-cise is necessary toachiev~ that objective. 3 Accord-ingly, the legislation adopted to complete the internaltransport market gives the Community an importantexclusive power in accordance with the ERTA doc-trine for agreements which are not related to trade inservices, and are therefore not covered by Article 113of the Treaty, and are not ancillary to a, commercialagreement.

307. However, notall agreements with a third coun-

try in the field of transport should be considered asfalling entirely within the scop~ of trade in transportservices or affecting the functioning of the internalmarket within the ERTA doctrine. Such agreementsmay still be concluded by the Member States.

308. Finally, even where the Community has anexclusive power, in certain circumstances, MemberStates can be authorized by the Council to negotiatebilaterally. The Court of Justice in a number of judg-ments has set out the principles for such a proce-dure. 4

309. These principles have not so far been recog-nized by the Member States. However, the adoptionof Council measures completing the internal marketin transport services will, it is hoped, produce a signi-ficant evolution in the debate. But in any event thepresent situation cannot be allowed to continue.Transport relations with third countries should beconducted only within a Community framework infull accordance with the Treaty.

New approach: priorities

310. The completion of the single market and theestablishment of the EEA, continuing growth in theinternational mobility of goods and people, recentchanges in Eastern and Central Europe and the

Opinion 1/78 (1979)ECR 2871 (on the InternationalRubber Agreement).

Case 22/70 Commission Counci/(1971) ECR263.Opinion 1/76 (1977) ECR 741 (on the Agreement estab-lishing a European laying-up fund for inland waterwayvessels).Citations of Donckerwolke, Tezi, Bulk Oil.

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increasing interdependence in world trade and ser-vices, call for the development of a new approach tothe external dimension of the CTP.

311. The main components in this new approachshould be the progressive transformation of existingbilateral regimes so that they fit into the new Euro-pean order and the internal market by means of aframework of Community agreements and proce-dures; the development of a global approach to thetransport services and systems of Europe, includingthose of the EEA and Eastern and Central Europeso that they can develop in as integrated a way aspossible across the continent; and the reinforcementof the Community s role within relevant internationalorganizations to reflect the full development of theCTP.

Progressive transformation of bilateral regimes

General principles

312. First, it is important that Member States informthe Commission adequately of agreements in forceand of their intention to negotiate new agreements ormodifications to existing ones. Such information isthe essential prerequisite for effective machinery,beginning with consultations between the Commis-sion and the Member States, to ensure that Com-munity competence is respected and the most appro-priate solutions found for the different types of prob-lem that will arise. Existing instruments, in particularCouncil Decisions 69/494, 77/587 and 80/50 havenot proved adequate in this regard. It is accordinglyimportant that they be modified as quickly as possi-ble.

313. Second, as regards matters falling within the

powers of the Community, a Member State will haveto be authorized, in the context of a transitionalregime, by a Council decision based on a Commis-sion proposal, to negotiate an agreement. A coordi-nation procedure will be essential and conditionsmight also be necessary going beyond the communi-cation of the result. These might relate for example tothe content of the agreement to be negotiated, inparticular, to take account of the interests of otherMember States and eliminate existing incompatibili-ties with Community law including discrimination on

grounds of nationality.

314. Third, in those areas in which the Communityshould negotiate, practices may need to be developedin specific cases to ensure the close involvement of

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the Member States in the process and the associationof relevant interest groups.

315. Fourth, attention also needs to be given to thesensitive question of how the Community shoulddeal with the allocation of traffic rights to differentoperators in situations where access to the relevantmarket will be subject to restrictions. Mechanismswill need to be found which give due weight to exist-ing rights while at the same time taking into accountthe proper functioning of the internal market.

316. These general principles are being applied

within the context of initiatives relating to differentpriorities, taking into account the complexity andvariety of the economic and technical characteristicsof the different transport sectors.

Priorities

317. In addition to work on initiatives already takenin the field of inland navigation and road transport inEurope, efforts will need to be concentrated on keyissues in the field of civil aviation and shipping. Mar-itime transport is fundamentally a. world market andany ambitious air carrier must have a global strategy.The CTP should accordingly support Communityoperators through the definition and implementationof shipping and aviation policies capable of keepingthe Community competitive in transport markets.

318. In aviation, for reasons explained in greater

detail elsewhere, I attention should be concentratedon relations with the USA, Japan and Eastern andCentral Europe. As regards the fIrst two countriesthere are clear indications that lack of a Communityapproach leads to unfavourable negotiating results.Also these markets are strategic sectors of the globalaviation market in which it is essential that Com-munity carriers have full opportunity to compete withtheir principal rivals. Eastern and Central Europeincluding the countries of the former Soviet Unionand countries formerly part of Yugoslavia, demandsattention for reasons explained below.

319. Other probable initiatives will need to studied for possible action probably in the longer

term. Developments in South-East Asia and South

America will have to be monitored and, if necessary,exploratory discussions might begin. Protectionistaviation policies in the various African States have

Communication to the Council on Air Transport rela-tions with third countries.

been applied not only to European cou~tries but a~soin their relations with one another. Afncan countriesas a whole are still committed to such policies but itis possible that in some cases a willingness todevelop closer trade and transport rel~tions wit~ ~he

Community might lead to opportunities requmngfurther exploration. This applies, for example, to theMagreb countries (Morocco, Algeria, Tunisia) and tothe Air Africa member countries. I

320. Finally, attention should be given to the possi-bility of negotiating a multilateral air c~go ~gree-ment.' In this sector, the European market IS basICallyopen to third-countrY operators. As restrictions arenot in the interests of the industrY as a whole, theoption of negotiating access for Community cargocarriers to other markets has to be given serious con-sideration . Amongst other benefits, a multilateral aircargo agreement can act as a catalyst for bringingabout further arrangements of this kind in other areasof civil aviation.

321. In shipping, it is fundamental that the Com-munity follows up the implementation of the . 19~6package, aiming at implementing non-protectIOnistpolicies in world shipping and at extendIng as muchas possible the application of market econo~y rulesto maritime transport. It has to be emphasized thatcontrary to air transport, which is govern~d by a ne~-work of bilateral agreements on traffic nghts, man-time transport is basically an open activity whereaccess to the international market is free for every-body. The need for bilateral agreements on commer-cial matters is therefore the exception and not therule.

322. The openness of the maritime transport marketis however limited by some existing bilateral agree-ments with cargo-sharing provisions; by cargo reser-vation policies of a number of countries, mainlydeveloping countries; and by restrictive or protection-ist policies in shipping and related activities by cer-tain third countries.

323. In order to resolve these problems, it will benecessary fIrst to ensure the proper implementat~onof Regulation No 4055/86 on freedom to providemaritime transport services between Member Statesand between Member States and third countries.Second, it will be necessary to consider how theCommunity should now develop its relations withthird countries in the maritime field. The Commis-sion intends to present a communication on this sub-ject in the near future, taking account of experiencesgained under the 1986 .Regulations and develop-

ments in the Uruguay Round. As far as the develop-

ing countries are concerned, the Community wil!have to continue to use, on the one hand, the LomeConvention provisions and, on the other hand, thecooperation agreements to ensure a degree of con-

vergence in shipping policies and help them developcommercially competitive shipping services.

A global approach to the transportservices and systems of Europe

324. The Pagrue Declaration adopted by the Pan-European Transport Conference in 1991 emphasizedthe necessity of developing transport networks on atruly European scale and of integrating the greaterEuropean transport market. Measures already takensuch as the EEA Agreement and the transit agree-ments with Switzerland and Austria, now need to becomplemented by other measures. These are neededin particular in relation to the countries of East~rnand Central Europe including the CIS and countriesformerly part of Yugoslavia.

325. Political developments in Eastern and CentralEurope made possible the negotiation of associationagreements with Poland, Hungary and Czechoslova-kia, thus establishing an initial framework for cooper-ation on transport issues. Specific agreements arenow needed to give effect to this objective. Theseagreements will aim at finding mutually satisfact?ryways of applying the principle of freedom to provideservices and at introducing progressive liberalizationof markets , taking into account the progress. made bythese countries in transport-sector restructunng alongmarket principles. Of equal importance is coopera.tion in the infrastructure field in order, in particularto promote the compatibility, interconnection andinteroperability of European transport systems takenas a whole.

326. European agreements now being negotiatedwith Bulgaria and Romania will provide a goodframework for cooperation in transport matters andhelp them to restructure their transport systems alongmarket-economy principles. Cooperation will interalia, include the development of alternative transitroutes to link Greece with other Community coun-tries. .

I Benin, Burkina Faso, Central African Republic, ChadCongo, Cote d'Ivoire, Mauritania, Niger, Senegal andTogo.

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327. Trade .and cooperation agreements with theBaltic States and Albania have been concluded, thusestablishing a framework for transport cooperation.Attention will be given to helping them to reinforcetheir transport links withthe Community.

328. The break.up of Yugoslavia created the needto establish with the newly recognized countries con-tractuallinks dealing with transport matters, in parti-cular inland transit, in order to avoid isolating Mem-ber States or hindering the development of a bal-anced network in the Balkan region. The conclusionby the Community of a transit agreement with Slov-enia would be a fIrst step in that direction with thehope th~t political evolution in the region will allowrebuilding of the transit arrangements that were nego-tiated and incorporated in the agreement signed inJune 1991 with Yugoslavia.

329. With regard to Russia and other countries ofthe former Soviet Union, cooperation in the field oftransport will develop in the framework of the newagreements which will be negotiated in the near

future by the Community and the new republics. Theobjectives of this cooperation will be to assist them tointroduce market-economy structures in transportoperations and to modernize their transport infras-tructure in ways which promote its compatibility,interconnection and interoperability with Communitysystems.

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International organizations andmultilateral conventions

330. At present, the Community holds onlyobserver status in major international organizations

dealing with transport and there are only a few multi-

lateral agreements to which the Community is aparty. The completion of the internal market and thedevelopment of a global CTP, having as its objectivesustainable mobility, constitute impomnt develop-ments which raise the question of the Communitystatus in relation to those organizations and conven-tions. A re-examination of each of the different situa-tions is required in order to evaluate the need forchange which, in some cases, may call for the Com-munity to seek membership of the organizations ashas recently occurred in other fields, for example, inthe case of the FAO. Similar considerations apply tomultilateral conventions dealing with matters fallingwithin the scope of the CTP. The Community mayneed to become a full party to such arrangements asit already has in the case of the ASOR Agreement. I

331. The opportunity should also be taken, in the

broader European context, of re-evaluating the res-pective roles of the different structures dealing withtransport issues: the EEA, the ECMT, the ECEECAC, Eurocontrol and the JAA. The objectiveshould be to define the different roles in such a waythat duplication of effort is avoided and maximumsynergy achieved.

Agreement on the international caITiage of passengers byroad by means of occasional coach and bus services.

v -- Community pol.icies and priorities

The action programme

332. In the light of the above analysis, an actionprogramme for the further development of the CTPshould have five main components: the developmentand integration of the Community's transport sys-tems on the basis of the internal market; safety; envi-ronment protection; a social dimension; and externalrelations. The main actions which should belaunched in the next two years (1993- 1994) are listedin Annex III. This Annex lists also those measurescalled for as a result of legislation already adopted.

333. The programme does not claim to be defini-tive. Over such a period of time new issues mayemerge and priorities may change. The action pro-gramme is not intended to be a rigid prescription butto give concrete expression to the main policy linesthat the Commission now intends to pursue. Such anapproach will increase the overall coherence of thedevelopment of the CTP. It will thereby assist in theformation of the necessary political consensus foreffective decision-making by the Community s legis-lative institutions, not least as regards the applicationof the subsidiarity principle as described in ChapterIII. The Commission intends to update the actionprogramme regularly at the time when it adopts itslegislative programme for the coming year. By givingthe action programme a rolling character, it intendsto reinforce its capacity to establish and maintainconsensus on the CTP' s objectives and priorities.

334. A detailed justification of each of the indivi-dual measures would make this paper far too long,even if it were feasible at the present time, which isnot always the case. For this reason this chapter seeksonly to deal concisely with the key issues, comple-menting explanations already given in other chapterswhile leaving detailed analysis and explanation toother communications, some of which are alreadyavailable or in preparation, such as those on roadand maritime safety or external relations in civil avia-tion.

The development and integration of the Community'transport systems

335. This component breaks down into four mainsub-components: the economic and regulatory frame-

work, technical harmonization, research and develop-ment and trans-European networks.

The economic and regulatoryframework

336. In addition to future legislative activity calledfor as a result of existing internal market legislationin the field of freedom to provide services (see points65 - 74), further measures of liberalization and har-monization are necessary in relation to a number ofactivities.

337. In the road transport sector, present restrictionson access to the market of own-account transport ser-vices and on the rental of goods vehicles and busesshould be abolished.

338. Extending the definition of own-account trans-port laid down in Regulation No 881/92 to coversubsidiaries and holding companies will enableown-account operators to organize their activitiesmore efficiently and reduce empty running.

339. As to be liberalization of vehicle hire, propo-sals will be made to improve the conditions for therental of goods vehicles for international transportoperations. Existing restrictions prohibiting in prac-tice the hire of vehicles in other Member States, suchas provisions that the vehicles hired must be regis-tered in compliance with the law of the MemberState of the hiring companies, will have to be doneaway with. Similar proposals are envisaged for thehire of buses and coaches. These measures wouldallow operators to accommodate the expected growthin international passenger transport services whilepermitting a more rational use of factors of produc-tion avoiding unnecessary capital investment.

340. As regards taxi services, priority should begiven to those markets in which there is real potentialfor economic gains such as the liberalization of inter-national taxi services, particularly in frontier regions.At present national and local restrictions frequentlyoblige operators to run empty when they could beproviding a useful service, for example, on return

journeys.

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341. However, the liberalization of the trade, for

example, through the general opening of cabotage,would need to take into account the requirement fortaxi drivers to be fully aware of the details of localgeography. An examination of the conditions andrestrictions imposed on taxi services might neverthe-less be useful to see how liberalization measuresmight assist in the development of a new type of ser-vice as an alternative to the use of the private car orthe usual 'one client at a time' taxi service. Flexibleminibus services, using modern telematic technology,might enable the multiclient taxi to make a new con-tribution to urban and rural transport, including theservice and interconnection of terminals in trans-European networks such as high-speed train stationsand airports. Whether legislative intervention to thisend is needed is at present unclear. It is possible thatother forms of initiative would be as. effective, forexample, actions in the research and developmentfield or non-binding policy instruments.

342. Finally, problems related to certain specializedinternational transport operations and services suchas security transport and ambulances do not appearto raise transport policy questions. They mainly con-cern public order, mutual recognition of qualifica-tions not related to expertise in transport, and officialapproval of equipment much of which is also nottransport related. They are therefore being examinedby the Commission in the context of Article 59.

343. In the rail sector, as already indicated, furtheraction is desirable to give effect to the liberalizationagreed in the context of the 1992 programme, in

particular, the establishment of criteria for access toand charging for infrastructure and also for the set-ting up of railway undertakings. Without better defi-nition of these criteria at Community level, there is areal danger that the liberalization already agreed willbe very uneven and, in some areas, may give rise tosuch conflicts that it may not happen at all or at bestfor a very long time.

344. As regards civil aviation, the adoption of thethird liberalization package provides the necessaryframework for scheduled and unscheduled transportservices for third parties, including air taxis. Otheraviation activities, some of which do not involve theprovision of transport services or indeed the provi.sion of any service to a third party, such as corporateown-account flying, have not so far produced clearlyjustified calls for Community intervention. In anycase, some of these activities which do not involvethe provision of a transport service, like aerial survey-ing or photography, are already governed by generalCommunity rules on establishment and freedom to

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provide services. For these reasons, no new liberaliza-tion initiatives are planned at present, though thefield will be kept under observation. The Commis-sion will, however, publish in an appropriate formthe methods which it intends to use to evaluatewhether air fares are too high or too low when com-plaints are made under the third liberalization pack-age.

345. On the harmonization side, the main emphasiswill be on the development of a Community frame-work for the charging of infrastructure and othercosts to users. Such a framework is the essential foun-dation for the realization of the objective of sustaina-ble mobility for the Community asa whole. If costsare not being properly allocated, stresses are boundto arise as users favour disproprortionately the trans-port services and systems that do not charge their fullcost. If costs are being allocated on the basis of signi-ficantly different principles in different States orlocalities, not only will significant diStortions affectcompetition between transport operators but it will bevery difficult to develop Community-wide transportsystems in a more integrated way. Furthermore, widevariations in cost imputation will make it more diffi-cult to develop a coherent approach to Communityaids policy as a means, in appropriate cases, of reliev-ing pressure on systems under stress through thepromotion of alternatives. The conditions underwhich aids may be used for this purpose by reducinguser costs should be based on a common approach tothe charging of costs in the first place.

346. Given the complexity of this problem, it makessense to proceed in stages. In the short term, empha-sis will be placed on the development of a frameworkfor the imputation of infrastructure costs. Particularattention will be given, in the light of the limited pro-

gress made in the 1992 programme on the harmoniza-tionof excise duty on diesel fuel, road tolls andcharges, to possibilities for adopting a truly territorialsystem of taxation of heavy goods vehicles. In themedium term, proposals will need to be made con.cerning charging for externalities so that environmen-tal problems will be addressed by the fundamentaleconomic mechanisms at work in the transport sec-tor.

347. Regimes applicable to civil liability and insur-ance .will also require attention. At present, damageto property and persons caused by transport activitiesis subject to a variety of national rules and practices.Some sectors are not subject to any Community orinternational framework at all. In others, notably air, 1

I Warsaw Convention (1929) The Hague Protocol

(1955) ~ Montreal Carrier Agreement (1955).

sea 1 and rail 2 transport, international frameworks doexist but they will often leave considerable scope forrather divergent national solutions. Moreover, theseinternational arrangements are not necessarilyadapted to current conditions, for example, becausemonetary ceilings do not reflect current values. Inany event, they were not designed with the needs of asingle transport market in mind. The proposal for adirective on the liability of suppliers of services, ifadopted, would introduce a measure of harmoniza-tion for damage to passengers and their baggagewhen the damage concerned is not covered by inter-national agreements ratified by the Member States.However, it is uncertain whether the directive will beadopted in this form. In any case, its adoption wouldnot affect the situation as regards freight.

348. Whether further Community initiatives areneeded and, if so, what form they should take arequestions which involve a number of complex issues.These need to be investigated for different modesand trades as well as for intermodal transport as awhole. The investigation will need to address thepotential contributions of different levels of policy-making and execution: national, Community, andinternational. Preparatory work has already begunconcerning, in particular, the aviation sector, inter-modal transport and dangerous goods.

349. Initiatives will also be taken in the area of a idspolicy, after discussion on a multilateral basis withMember States and taking into account the views ofthe transport industry and its customers. These ini-tiaves will seek to eliminate unnecessary bureaucracywhile ensuring that the distortive effects of aid mea-sures will not compromise the establishment of alevel playing field within the single market and thatan 'aid race' is not started due to the wishes of Mem-ber States to protect their national transport indus-

tries.

350. On the one hand, it may be possible to modifyCommunity requirements on notification of aids bythe adoption of a de minimis rule and, in addition

the present exemptions applicable to inland trans-port, notably as regards public service obligationsmight be extended to air and maritime transport.

351. On the other hand, as already explained, theopening up of transport markets to more competitionas a result of the 1992 programme means that greaterattention has to be paid to subsidies which couldunfairly advantage particular operators. To this endthe Commission intends fIrst to develop and main-tain an inventory of State aids in the different trans-port sectors. It will also propose measures, where

necessary, to increase the transparency of the finan-cial accounts of the entities responsible for providingtransport infrastructure and services so that the inven-tory will better reflect the reality of the different waysin which they may be supported. For the samereason, it will examine whether prior notificationrequirements could be developed to cover, in addi-

tion to interventions which are undoubtedly aidsother interventions involving a real possibility of sub-vention, though not necessarily in all cases. It willalso re-examine its guidelines .on the criteria used toevaluate whether State aids are compatible with theTreaty with a view to adapting them to the currentcharacteristics of the sector while ensuring that theyremain coherent with the Commission s approach inother fields. One of the main objectives of this latterexercise will be to indicate as clearly as possible to

national and local authorities the scope which isavailable for interventions within the limits of

Article 92.

352. Beyond the issue of the Community frame-work for national and local aids is the question ofCommunity-level action to support the adaptationand development of particular transport sectors,often referred to as 'positive measures

353. In the maritime field, further action will beneeded to address the continuing problem of the ero-sion of the Community s fleets. National initiativeshave so far not produced a satisfactory solution tothe problem which poses a threat to the viability ofthe Community s maritime industries taken as awhole. A coordinated approach is called for includ-ing further development of the proposed EUROSregister and measures to ensure. that Community ship-owners are not put at an unfair disadvantage by thefailure of the authorities of States responsible for

flags of convenience to enforce accepted standards.This matter is addressed further in the section on saf-ety below. Attention will also be given to thedevelopment of short-sea shipping in the new contextof a liberalized internal market and its extension tothe European Economic Area and beyond into East-ern and Central Europe. The Maritime industriesForum has indentified this field as one in which act-ion should be taken as a priority matter.

354. In inland navigation, the scrapping scheme todeal with overcapacity will be re-examined with a

view to the continued modernization of the Com-

Brussels Convention (1957) Athens Convention

(1974).2 COTIF ~ CIV (1980).

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munity fleet and further measures will be proposed toassist the process of its adaptation to the needs of theCommunity market and the opening of the canal net-work to east.

355. As to road haulage, the industrY in some Mem-ber States faces considerable problems of adaptationto competition in a Community-wide market, parti-cularly where large numbers of very small fl1111s havebeen able to survive in protected national and evenlocal markets. The process of adaptation will have tobe managed if possibly disruptive crises .are to beavoided. To assist that process, the conditions foraccess to the profession as well as the regimes for

ensuring compliance with licensing conditions andfor roadworthiness-testing of vehicles will be re-examined. The objective will be to see whether adap-tations to the Community framework are needed inorder to assist the necessary restructuring and moder-nization of the industrY and, at the same time, toensure fair competition between operators. The roleof quality assurance on the basis of internationalstandards like ISO 9000 will be the subject of parti-cular attention in this context. It may contribute to asolution which is particularly attractive from the sub-sidiarity point .of view by reducing the need for bothdetailed rules at Community or national level andmore burdensome controls Qn a case-by-case basis.

356. In relation to intermodal transport, considera-tion will be given to favourable tax treatment for

road vehicles respecting high safety and environmentstandards used in intermodal operations. Guidelineswill be developed for aids to attract operators tointermodal transport, particularly aids to investment.Furthermore, proposals will be put forward to facili-tate cooperation between transport enterprisesengaged in intermodal operations and to take intoaccount recent developments on cooperation in therailways field on the basis of Directive 9l/440/EECFinally, the absence of common liability for intermo-dal operations makes it necessary to establish whatinitiatives might be appropriate at Community leveltaking account of activities in relevant internationalorganizations.

357. Finally, measures shQuld betaken to improvethe availability and quality of information on thefunctioning of the internal transport market.

The existing statistical system will need strengtheningand extending to new areas for which so far no Com-munity.wide data are available. The future of thepresent 'temporary' system for market observationshould be decided in this context.

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Technical harmonization

358. Technical harmonization is essential both to

the elimination of competitive distortions and to theinteroperability of the Community's intermodal sys-tems.

359. As regards inland transport, priority actionswould include improvement of technical standardsfor inland waterway vessels and standardization ofnetwork interoperability for high-speed trains.

360. Technical harmonization in civil aviation willbe pursued through action aimed at the standardiza-tion of ATC/ATM equipment and procedures. Fur-ther action would also include Community legisla.tion on the basis of new joint aviation requirements

(JARs).

361. In relation to shipping, the need for harmoni-zation of operation of vessel traffic-management sys-tems calls for and justifies Community action. Furth-ermore, the Community should playa role in supportof development of port electronic data interchange(EDI) systems compatible with Community direc-tives on notification requirements for vessels carryinggoods to and from EC ports.

362. Finally, .action in the field of combined trans-port will include technical harmonization of loadingunits, railway equipment, containers and terminals.

Research and development

363. The Commission will propose a more promi-nent role for transport within the fourth frameworkprogramme for research and development. This willbuild upon experience and progress already achievedin previous programmes and will require, as in thepast, the active involvement of private enterprise, thescientific community and final users.

364. Transport R&D efforts will be directed fIrSttowards supporting the development of a multimodaltransport system, focusing on the complementarity ofthe different transport modes and developing scena-rios and analyses at the urban, rural, regional andtrans-European level, as well as the interrelationshipbetween human factors and technology. A standardmethodology will be established for analysing theircompatibility with the objectives of Community envi-ronment policy. Special attention will also be givento organizational aspects in order to safeguard an

effective implementation of technical innovationsincluding telematics, in such a way that the overallimpact is an improvement of complementarity andefficiency adapted to the needs of an integratedtransport system.

365. This approach will be supported by the

development of technologies for integrated andoptimized transport systems.

366. Telematics technologies should ensure theimproved functioning of the multimodal transportsystem, interconnection and interoperability acrossthe different modes. At the modal level, telematicsR&D will be pursued further in order to demonstratethe performance of solutions based on integrated sys-tems and to solve a number of specific problems likeair traffic management. Advanced technologies inthis field, currently being developed within the Com-munity and in other international organizations

should be taken further with the aim of establishing asingle unified system.

367. Research on industrial technologies other thantelematics will continue to be an important factor forthe realization of the different components ofthesus-tainable mobility principle. It will include: vehiclesincluding their engines, materials, design; infrastruc-ture; and systems, urban, rural and trans-Europeanas well as the economic and ergonomic aspects ofthese componentS.

Trans-European networks

368. Community action in this field is focused onthe strategic definition of the network concept foreach mode. This will be done by adopting a newframework regulation fixing objectives, priorities andmethods and by establishing the necessary guidelinesfor long-term development and by incorporatingrequirements for pan-European systems covering thecountries of Central and Eastern Europe and theEEA.

369. The existing network guidelines will be furtherdeveloped and complemented. The environmentalaspects of the road network will be given particularattention, as will the need for improved mobility tobenefit the Community's peripheral and more iso-lated regions. The road network guidelines will alsobe extended to cover as quickly as possible thedeployment of telematic technologies for improvingthe management of the network. Work on the inland

waterways network will concentrate on evaluating themarket potential of different corridors and on feasi-bility studies for priority projects. The developmentof the high-speed train network's key links will con-tinue with a view, in particular, to improving inter-connection and interoperability both within thehigh-speed system and in relation to conventional

. rail and other modes. Pilot projects will be launchedto realize the key links of the intermodal transportnetwork, including its maritime dimension.

370. The system will be completed with thedevelopment of network guidelines for other modesor sectors. Conventional rail guidelines will be putforward to include links to the high-speed train andcombined-transport networks, so as to form an inte-

grated basic rail system. The maritime sector calls foraction on two fronts. First, the role of ports as nodesof the network has to be defined. Second, sea corri-dors as alternative to land ones, and their intercon-nection with the continental axes, will be identifiedto enhance the efficiency of the system as a whole.Both lines of action will be included in a proposal for

guidelines for ports.

In parallel with work on technical harmonizationCommunity guidelines will be proposed for a VTSnetwork for maritime transport that incorporates saf-ety and environmental objectives. Priority will begiven to the development of the Mediterranean Seanetwork. Airports also playa fundamental role asnodes of the Community transport system. Theirinterconnection to land modes, interfaces with urbansystems and potential capacity to meet the probable

growth in transport demand will be incorporated intoguidelines defining the airports network. In additionthe Community working within the appropriateframework and in close cooperation with the interna-tional organizations and national authorities con-cerned, will present guidelines for the developmentof a single unified A TM/A TC system for Europe.

371. The need to introduce intermodal alternativesin the field of passenger transport currently markedby the predominance of private-car and air transportprovides the basis for a new initiative. In addition tothe existing and future Community networks, there isscope for a 'citizen s network' for collective transportcomposed of interconnected air, bus and rail systemsand services offered by public or private operators.User-friendly information systems and other facilitiessuch as flexible taxi services and quality standardswould provide added value to such a schemedesigned to give a Community dimension to high-quality public service transport.

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372. Finally, guidelines will be prepared for theCommunity' s intermodal system taken as a whole,integrating the guidelines for the different modes andsectors. The objective will be to optimize the contri-bution that each can make, in combination with theothers, to an efficient, safe transport system whichmeets the Community' s environmental objec~ives.

Safety for the protection of theuser and non-user alike

373. In the field of road safety, the Commissionenvisages the adoption of a programme based onpriority action in the fields of driver education andbehaviour, technical standards for vehicles andinfrastructure aspects of safety. Bearing in mind theconsiderable difference in the levels of road safety

between the Member States, a first priority will be topromote exchanges of information and experienceand set up a Community databank. The Com-munity' s approach will not always rely on legislation;other non-binding instruments can contribute toachieve the safety objective.

374. In the context of action related to driversbehaviour priority will be given to measuresdesigned to provide support for driver education andawareness programmes at national and local level.The basic objective will be to promote less aggressivedriving by drawing on experiences gained throughoutthe Community. Legislative measures will concen-trate on basic .rules of the road and road signs. Inrelation to vehicle safety, measures will be adopted toimprove passive .and active safety through R&D, con-struction standards and roadworthiness testing. As toinfrastructure, the Community should playa rolethrough the development of standards and the gener-alization of best practice in the context of the trans-European road network as well as more generallyapplicable recommendations on road design, con-struction and maintenance.

375. Community action in the field of air safety willhave to take into account the work of the relevantinternational organizations such as the ICAOECAC, JAA and Eurocontrol. This will enable theCommunity to pursue technical harmonization onthe basis of new joint aviation requirementsestab-lished by the JAA and to develop a single unifiedATM system for Europe in close cooperation withEurocontrol and the ECAc. Research in ATM cur-

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rently undertaken through the EURET, ATLASFanstic and GAAS projects will also contribute tothis goal.

376. Priority actions will also cover common licen-sing requirements for cockpit crews and eventually

for other categories of personnel, such as ground

engineers and air traffic controllers.

377. Finally, the Commission will seek to improvedata quality and collection methods through Com-munity action on mandatory incident reportingsys-tems, confidential reporting systems and accidentinvestigations.

378. Community action in the field of maritime saf-ety will include strengthening the work and rules ofthe IMO by making important existing IMO resolu-tions mandatory and by setting up a framework for amore systematic implementation of future importantIMO resolutions in the Community. In so far as isnecessary, accompanying directives or standards willbe developed to avoid different safety levels withinthe Community. Commission proposals for animproved and more effective coordination of the act-ion of Member States within the IMO are also fore-seen.

The effectiveness of the existing Memorandum ofUnderstanding on Port State Control will be enh-anced through mandatory rules for inspections ofships presenting an internationally recognized safety

or environmental risk and harmonized detention cri-teria. Proposals will be made for providing a uniformlegal basis for the enforcement of internationally

agreed rules, applicable to all ships plying to andfrom European ports, should such a framework notexist at international level.

379. Framework directives fixing essential safety

requirements and putting forward guidelines for theirnon-divergent implementation within the Com-munity will be proposed to cover non-convention

ships such as passenger vessels in national trade,cargo vessels of lower tonnage, smaller fishing vesselsand recreational craft. Internationally agreed safetyprinciples and national safety rules, when and wherethey exist will be taken into account as much as pos.sible in the Commission proposals.

380. In relation to the transport of dangerous goodsattention will be given to the need for more conver-gent liability regimes in case of accident. Harmoniza-tion measures will be put forward on classificationlabelling and packaging of dangerous goods acrossmodes.

Environment

381. Beyond measures given in points 332 to 380

above environment protection will require stringentstand~ds at Community level for gaseous emissions,energy consumption and noise emissions for the dif-ferent transport means. Legislation and strict applica-tion of technical directives on inspection and mainte-nance of vehicles in the field of environmental per-formance will be essential to achieve the reductionsin emissions that current technology can bring about.Existing Community legislation in this field willrequire updating and strengthening.

382. In relation to noise disturbance affecting thepopulation living in and around airports it will beneces~ary to ensure that the areas surrounding the air-ports are adequately protected against an increase innoise volume, due to the growth in air transport, andthat no new noise-sensitive activities are allowed nearairports. Community action in this field will focus onthe establishment of a standard method of calcula-tion of noise exposure levels and standard noiseexposure indices, the introduction of noise monitor-ing, land-use rules and noise zoning around airports.These measures will need to take account of the char.acteristics of individual airports. Community actionrelated to environmental performance .of individualaircraft will include non-addition rules for the noisi-est aircraft and similarly will establish stricter stan-dards for NOx emissions. Community action willhave to take account of the work of the relevant inter-national organizations such as the ICAO and ECAc.

383. Strategic environmental impact assessment willbe an integral part of the decision-making process fortransport infrastructure policies, programmes andinvestment decisions on individual projects. In orderto provide a level playing field for investment de~i-

sions in transport infrastructure, the CommunItyshould recommend a standard methodology for theircost-benefit analysis, including externalities, even ifthe infrastructure in question does not form part of atrans-European network.

Social protection

384. Social measures in transport policy shouldestablish criteria for access to the profession andtraining, seek to improve living and working condi-tions, protect and promote employment of transport

workers and encourage social dialogue and collectivebargaining.

385. The Commission intends to ensure that socialpartners are fully associated in the making of policymea$ures having social implications. Where dialoguebetween the partners leads to solutions based on col-lective agreements, Community intervention willeither be redundant, or, if need be, defined along thesame lines.

386. Further Community action will be designed tostrengthen criteria and conditions for access to theprofessions and training on grounds both o! improve-ments in safety and the necessary adaptation of thesectors to the single market. The structure of roadhaulage requires further strengthening of existingrules on access. Common training specifications willbe put forward for certain professions in . ci~il avi

tion (see points 373 - 380). The Commission willpresent a proposal for uniform criteria for issuiboat master certificates in inland waterways and willexamine whether to propose legislation on minimumlevels of education and training of maritime officersand captains.

387. Social considerations, safety and the elimina-tion of competitive distortions constitute the reasonsjustifying future Community initiatives in the field ofworking, operating and other times. Any relevantmeasures however, must be adapted to varying regu.latory situations across modes. In the road sectormodification of Community rules on driving hoursand rest periods is required as a matter of urgency.

To improve weak enforcement methods in this area,the Community will seek simplification and technicalmodernization of the current system through thedevelopment of the modern digital recording equip-ment as an altemative for the tachograph, as well asnon-legislative techniques to generalize best practice.The Community will then examine how to proceedin the area of working time. In the field of inlandwaterways, rules on manning and working hours arealready in force for navigation in the Rhine. TheCommission intends to propose similar rules for therest of the Community waterways network. TheCommission will evaluate whether, and, if so, whatprovisions are called for in the railway~, shi~ping andcivil aviation sectors in close consultation WIth all the

organizations concerned, to accompany marketpolicy developments in these sectors.

388. Protection and promotion of employment oftransport workers will continue to be the objective

pursued by Community proposals on 'positive mea-sures' for certain sensitive transport industries. Fur-

S. 3/93

ther development of the proposed EUROS registerand positive measures for inland navigation will con-tribute to developing employment in these areas.

389. In addition to policies to protect and promotethe interests of workers, the social dimension of theCTP will also include measures in favour of userswith reduced mobility. The Community will . contri-bute with cooperation on information programmesand, where needed, proposals for minimum stan-dards on improved accessibility.

External relations

390. The completion of the single market and theestablishment of the EEA, continuing growth ininternational mobility of goods and people and thedemocratization process in Central and Eastern

Europe call for the strengthening of the externaldimension of the CTP.

391. A three-fold strategy is now proposed consist-ing of the progressive transformation over a given

period of existing bilateral arrangements so that theywill fit within a framework of Community agreementand procedures; the development of globalapproach to the provision and functioning of trans-port systems in Europe, including those of the EEA

S. 3/93

and Eastern and Central Europe; and the reinforce-ment of the Community's role in relevant interna-tional organizations.

392. A$ regards the transformation of existing bila-teral arrangements between Member States and thirdcountries, the Commission will present proposalsconcerning shipping and inland transport to the

Council. In some cases it may be necessary for theCommunity to go beyond the framework of Com.munity bilateral arrangements and consider thedevelopment of a system of multilateral negotiationswith groups .of countries.

393. The necessity to develop Europe-wide trans-port networks and integrate the broader Europeantransport market must be pursued further as stressedin the Prague Declaration adopted by the Pan-Euro-pean Transport Conference in 1991. Steps already

undertaken in this direction now need to be comple-mented by other measures to cover, in particular, theCIS and the newly independent Balkan States.

394. The Community' participation in interna-tional organizations should be re-examined with aview to ensuring that it can participate as effectivelyas possible in work on matters falling within its com-petence. The possibilities for the COmmunity tobecome a member of international organizations

should be explored. At the same time, the opportun-ityshould be taken to re-evaluate the roles of the dif-ferent organizations dealing with transport issues

particularly in Europe, with a view to achieving themost effective division of responsibilities.

Annexes Annex I

Table 1 -, EC freight transport

(thOU$fJ1Id miUiIJn tonne-ki/ometres J)

Rail RoadInland water-

Pipeline Totalways

1970 207 3772 101 745

1975 177 4592 800

1980 194 5813 104 959

1985 181 6344 971

1989 181 7844 104 1131

1990 176 7975 105 1141

Average annual growth rates

(%)

1970- 75 3.1 +4. 1.2 +1.0 +1.31975- + 1.8 +4. 1.8 + 1.0 +3.71980- 1.2 + l.l 1.3 5.3 +0.1985- 0.1 +6.7 + 1.7 +0. +3.1989- 2.7 + 1.7 + 1.0 +1.6 +0.

Modal shares

(%)

1970 27. 50. 13. 100

1975 22.1 57.4 11.9 100

1980 20.2 60. 10. 8.4 100

1985 18. 65.3 6.3 100

1989 16. 69.3 5.5 100

1990 15.4 69. 100

Source: ECMT.I EURI2.~ Without P, IRL.3 Without GR.4 WithoutP.5 Without P, GR, IRL.

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Table 2 EC passenger transport

Rail Buses and coaches Private cars Aie2 Total

1970 182 2143 13903 18271975 200 2493 17013 22161980 209 2783 20333 26121985 218 2843 22003 138 28401989 231 3024 26854 180 33981990 231 3135 2 7764 196 3516

(thousand miUion passenger-kilometres

A verage annual growth rates

1970- 75 + 1.9 +3.1 +4.1 +10. +3.1975- +0. +2. +3. +3.31980-85 +0. +0. + 1.6 8.4 + 1.71985- + 1.4 + 1.6 +5.1 + 6. +4.1989- +0.5 +3. +3. +3.4

(%)

Modal shares

1970 10. 11.7 76.11975 11.2 76.1980 10. 77. 3.51985 10. 77.51989 79. 5.31990 79.

(%)

Source: ECMT.I EURI2.2 Estimates; traffic departing

andlanding inside EC only.3 Without L, IRL.

. Without L, IRL, GR.5 Without B, GR, IRL, L.

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Annex II

European Community airlinesFIFTH FREEDOM OPERATIONSBEYOND USA(ZERO US CABOTAGE)(SUMMER 1991) M.-

. T$mp$ Orl$ndo San Juan

"iJ/\ a-. A~ua

San Jose

US airlinesFIFTH FREEDOM OPERATIONSWITHIN AND BEYONDTHE EUROPEAN COMMUNITY(SUMMER 1991)

'1J

Nairobi

S. 3/93

Priorities for the commontransport policy

Axes:

1. Development and integration of Communitytransport systemsEconomic and regulatory frameworkTechnical harmonizationResearch and developmentNetwork development

2. Safety in transport

3. Environment protection

4. Social protectionS. External relations

Measures called for by existing legislation

1. Development and integration ofCommunity transport systems

Economic and regulatory framework

Charging of infrastructure costs and externalitiesincluding the use of fiscal incentives, and a territorialCommunity heavy goods vehicles tax system.

Abolition of restrictions on rental of goods vehiclesand buses in other Member States and own-accounttransport services (follow-up to Regulation No 881/92).

Positive measures for the development of inland wat-erways.

Strengthening of EUROS proposals, positive mea-sures and promotion of short-sea shipping.

Inventory of State aids

, .

criteria for State aids evalua-tion, notification requirements for State aids.

Setting up statistical systems on transport of goods bysea and road accidents.

Freedom to provide international services in the taxisector.

Technical Harmonization

Technical harmonization for inland waterway ves-

sels; road vehicles; combined transport and railways

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Annex III

in particular, network interoperability for high-speedtrains.

Evaluation of the effect of increasing dimensions ofcontainers on the economy, infrastructures and saf-ety; harmonization of loading units (swap-bodies and

containers).

Standardization of air traffic control (ATe) equip.ment, development of vessel traffic systems (VTS)and electronic data interchange (EDI) systems forports.

Research and development

Establishment of a coherent transport-related R&Dapproach in the fourth framework programme.

Continuation of actions concerning traffic manage-ment, logistics and demand for all modes of trans-port, transport related to environment issues.

Establishment of practical cooperation with otherEuropean R&D organizations in the field of trans-port, notably Eureka, Eurocontrol, COST andOECD.

Network development

Framework regulation; guidelines for conventionalrailways, ports and airports, air traffic management(AIM) and vessel traffic management (VTM);actions to ensure system integration .and multimodal-ity.

Deployment of telematics within guidelines alreadyproposed, notably roads.

Guidelines for a ' citizens' network' of intermodalpassenger services.

Framework for contributing to transport network

infrastructure in third countries (notably Eastern andCentral Europe).

2. Safety in transport

Implementation of a road safety programme includ-ing priority actions in the field of driver educationand behaviour, vehicle safety and infrastructure.

Strengthening of Community legislation on the .car-riage of dangerous goods for national and interna-tional transport operations.

Community specifications and operational proce-dures based .on Eurocontrol standards, mandatoryincident reporting (MIR) systems and aircraft acci-dent investigations.

Convergent application in the Community of inter-national rules on safety and pollution prevention atsea; strengthening and effective application of portState control.

3. Environment protection

Revision and strengthening of technical directives onroadworthiness of vehicles in the field of environ-mental performance (emissions, noise).

Encouragement and promotion of safe public trans-port and support for local initiatives in favour ofcyclists and pedestrians to make a contribution to thequality of the urban environment.

Standard noise exposure method of calculation andindices, non-addition rules for noisiest Chapter IIIaircraft and NOx emissions.

Development of systems to manage waste streams

and pollution prevention from ships.

4. Social protection

Modified rules on access to the profession, training,driving hours and rest periods in road haulage.

Manning and working conditions in inland water-ways.

Improved transport for people with reduced mobil-ity; a~essibility requirements.

Community flight-time limitation schemes and mini-mum training requirements for certain professions incivil aviation.

Minimum level of education. and training of officerson ships.

Working time in different transport sectors.

5. External relations

Proposals for and execution of mandates for negotia-tion of agreements with third countries.

External relations in maritime transport, including

actions to remove restrictions on the market and toaddress shipping relations with third countries.

Technical assistance to CECE and countries of theformer Soviet Union including cooperation inATM/ATc.

Strengthening EC participation and status in interna-tional organizations dealing with transport.

Follow-up of the conclusions of the fIrst pan-Euro.pean Conference held in Prague (October 1991) andthe Baltic Conference held in Szczecin (March 1992).

Measures called for by existing legislation

A number of legislative measures are also called forby existing legislation: improvements in the availabil.ity and quality of information on the functioning ofthe internal transport market; criteria relating to thefurther liberalization of railways; the next phase inthe scrapping programme to deal with overcapacityin inland waterways; criteria and methods to evaluateexcessively high/low air fares; further liberalizationof national regular road passenger services by busand coach; summer time arrangements.

3/93

European Communities - Commission

The future development of the common transport poliCy - A global approach to the constructionof a Community framework for sustainable mobility

Supplement 3/93 Bull. EC

Luxembourg: Office for Official Publications of the European Communities

1993- 72pp. 17.6 x 25.0cm

ISBN 92-826-5911-

Price (excluding VAT) in Luxembourg: ECU 6