Five major European railway associations have urged the European Commission to create a follow-up to the EU-Rail Joint Undertaking partnership under the Horizon Europe programme. They cautioned that continuous public funding is vital to maintain the competitiveness of Europe’s rail sector in the future. This request comes when the Commission is preparing the MFF for 2028–2034, and the European Competitiveness Fund (ECF) is also being proposed.
Five Major Associations Behind the Call
The joint position is the work of the Community of European Railway and Infrastructure Companies (CER), the European Rail Infrastructure Managers (EIM), the International Union of Private Wagon Keepers (UIP), the International Association of Public Transport (UITP), and the Association of the European Rail Supply Industry (UNIFE). In total, the five associations represent European operators, manufacturers, infrastructure managers, and mobility providers.
€3bn R&D and €15bn Deployment Target
On their part, the railway groups want the next joint undertaking of EU-Rail to have at least a €3 billion budget to cover research and innovation, together with €15 billion for pre-implementation and deployment to cover the costs. Such a level of support, they say, is what it takes to encourage long-term private investment, to build up the clean energy supply chain for Rail Europe, and to facilitate the political objectives of the Single European Railway Area. Most significant of all, this would not only be a programme for long-distance rail but also for the regional and urban rail to revitalize the entire European rail ecosystem.
Flexible Participation for SMEs
Moreover, the associations emphasized that a legal and financial framework that is flexible enough to allow participation from members without the need of cash contributions should be in place. Rather than money, technology in the form of development, testing, or engineering expertise should be allowed. This, the associations said, would remove some barriers for small and medium-sized enterprises (SMEs), especially those in the local and urban rail markets, and yet assist the long-term commitment of the industry to innovation.
Call for Simpler Rules and Budget Certainty
Consonant with the wider goals of Horizon Europe, the groups suggested that there should be simple administrative procedures and a greater focus on the technical rather than the bureaucratic aspects. They also proposed that successor partnership should provide certainty and predictability about the budget and suggested that the funding be divided equally between the EU and the industry. Currently, the EU contribution is limited to 50%, so if there is a decrease in the contribution, it has to be compensated by the industry—an agreement which the associations say leads to financial uncertainty and risk.
Rail Groups Highlight Wider EU Budget
The rail groups, however, did not stop at this; they pointed out the bigger financial picture of the next MFF besides research funding, which amounts to €1.8 trillion, out of which €243 billion are for the European Competitiveness Fund and €51 billion for the Connecting Europe Facility (CEF) Transport programme. They accepted these as signs of the EU’s commitment to technological sovereignty, the green transition, and global competitiveness but cautioned that the funds must be converted to real benefits.
Key Additional Funding Demands
Besides other demands, the railway associations have asked for:
- A long-term research and innovation budget, with half from Horizon Europe and the rest from industry, plus €15 billion for pre-deployment.
- The retention of an inclusive partnership model involving the European Commission, ERA, industry, operators, infrastructure managers, research institutions, and SMEs.
- Stronger synergies among EU transport funding tools, particularly CEF-Transport as the backbone of infrastructure investment.
Push for €100bn CEF-Transport Budget
The rail industry is additionally advocating for a massive increase in infrastructure funding and is asking for the CEF-Transport budget to be raised to €100 billion to be able to fulfill Europe’s long-term mobility and climate goals. Furthermore, the groups stated that the options for transferring from national and regional partnership plans (NRPPs) to the CEF should still be there to keep flexibility.
Clear Links Between EU Funding Programs
In the end, the associations called on the Commission to define clearly the linkages between Horizon Europe, NRPPs, and CEF-Transport. They also suggested that this be done in close contact with the stakeholders so that the impact of EU rail investment could be maximized.
Industry Seeks Long-Term Stability and Faster Deployment
Together, the proposals demonstrate the rail industry’s increasing demand for long-term policy stability, stronger innovation support, and faster deployment, as Europe tries to achieve its climate goals and enhance the competitiveness of its transport sector at the same time.
