The European Union is negotiating its next Multiannual Financial Framework (MFF). The current Irish Presidency recently put forward a new proposal. In it, funding for transport projects is cut relatively harshly, to the dismay of rail freight.
Compared to the initial budget proposal by the European Commission, the Irish Presidency’s proposal cuts the overall budget by 8%: a difference of around €160 billion euros. Transport funding is hit significantly harder, with a proposed cut of 11%.
The European Rail Freight Association (ERFA) protests this plan in collaboration with other sector-relevant parties, such as UIRR, UIP, CER, AERRL and ETF. In a joint letter, they say that political compromises should not impact transport investment negatively. Europe’s financial instrument to fund transport and infrastructure projects, CEF, could suffer deeper cuts than the overall budget.
With a cut of 11%, the transport budget in CEF could fall from €45,8 billion to €40,6 billion (measured in 2025 prices). In that scenario, transport would only receive 2.5% of the overall EU budget.
The need for transport funding
ERFA argues that CEF is an important instrument to allocate money to cross-border infrastructure, missing links, EU-wide interoperable systems such as on-board and track side ERTMS, and key rail freight parameters.
Moreover, the joint letter points out that 1.4 million European transport companies with 10.4 million employees generate 4.8% of the EU’s value added. All other industries depend on their services to reach markets, it says.
“Efficient and resilient transport networks contribute directly to Europe’s energy security, particularly in times of supply disruptions. At the same time, Europe’s transport infrastructure, including railways, roads, ports, airports and inland waterways, is essential for military mobility, ensuring the rapid movement of troops, equipment and critical supplies across the continent”, the letter notes.
The letter’s signatories call upon the EU Member States to:
- Restore the transport envelope of the Connecting Europe Facility at least to the level proposed by the Commission (reverse the proposed 11% cut),
- Guarantee a minimum share of the National and Regional Partnership Plans to be reserved for transport,
- Open the European Competitiveness Fund explicitly to transport as a complement to dedicated infrastructure funding, but never as a substitute for it.
“The MFF deal will show us if there is political will and commitment by the Member States towards a European and corridor vision when investing in rail infrastructure, modal shift and supply-chain resilience. We urge the European Council to keep this in mind when approaching this budget negotiation”, concluded ERFA Secretary General Maria Price.
Discussions on the next MFF continue at the ongoing European Council meeting of 15 and 16 October.