Ripa di Meana, C.

Archive of European Integration

European CommunitiesEUROPEAN PARLIAMENTWbrking Documents1981-19829 October l9tl DOCUMENT I.564/8IReportdrawn up on behalf of the Committee on Transporton the proposals from the Commission of the European Communities tothe Council (Doc. l{92l80) forI. a Regulation setting the time limit and conditions for theachievement of financial balance by railway undertakingsII. a Decision amending the DecisionT5/327/EEc on the improvementof the situation of railway undertakings and the harmonization ofrules governing financial relations between such undertakings andStatesRapporteur: Mr C. RIPA DI MEANAEnglish Edition PE 72.649/fn.By letter of 9 February 1981 the council requested the urrroo""n parriamentto deliver an opinion on the proposals from the commiseion of the Europeancommunities to the council for a reguration setting the time limit and conditionefor the achievement of financial balance by railway unqertakings, and for adccieion amending the Decision 75/3277T;EC on the improvement of the situationof railway undertakings and the harmonization of rures governing financialrelations between such undertakings and States.The President of the European parliament referredCommittee on Transport.these_ pr_oposals to theOn 22 February 1981_ the Committee appointed !j!r RIPA di MEANA rapporteur.rt considered the draft report at its meetings of 26 June and r octoberI98l and at the latter meeting unanimousry adopted the motion for a resorutionand explanatory etatement.Present: I'1r seefeld, chairmanr Dame shelagh Roberts and Mr carossino,vice-chairmeni lilr Ripa di Meana, raPPorteuri Mr Albers, Mr Baudis,Mr Buttafuoco, !!r Cottrell, Mr K. Fuchs (deputizing for Mr Hoffmann),Lord Harmar-Nicholls, Mr Klinkenborg, Mr ltoreland, Mr Travaglini, andMr Veronesi (deputizing for !,Ir Cardia) .-3 PE 72.549/fLn-CONTENTSAmendnentA. I.,IOTION FOR A RESOLUTI0DIB. EXPI.ANAIORY STATEMENT ..Paqe56I-4 PE 72.649/fi.n.The Conunitt€c on Transport hereby submits to the European Parliament thefollowing anendment and Motion for a Resolution together with explanatorystatement:AMENDMENTCommiesion ProPosalfor a Councll regulation setting the time-limit and conditions for theachievement of financial balance by railway undertakings-1.Artic1e_2: Replace the words 'covered by its revenue each year' and' covered by its revenue taE!ry--gng.--Y9-U.-ly.ith another' .I " 37, zo.z.Lgat, p.7-5- PE 72.649/fLn/An.Al4oTroN FoR A RE9oLUTIONembodying the opinion of the European Paru.rment on the ProPoeals frorn theconmission of the European conmunities to the council for:I. a Regulation setting the time llmit and conditions for the achievementof financial balance by railway undertakingsII. a Decision amending the Decision 75/3721E8c on the improvement of thesituation of railway undertakings and the harmonizatl'on of rules govern-ing financial relationg between such undertakings and stateeThe European Parliament,- having regard to the proposals from the Commission of the EuropeanCommunities to the CounciIl,- having been consulted by the Council pursuant to Article 75 of the EECTreaty (Doc. 1-892/801,- having regard to Article I5(1) of the Council Decision of 20 t'tay 1975on the improvement of the situation of railway undertakings and the har-monisation of rules governing financial relations between such under-takings and States2,- having regard to its resolution of 11 JuIy 1980, in particular paragraph8 thereof r 3- having regard to the report of the Committee on Transport (doc.1-554/ALl,I. Welcomes the Commission proposals inasmuch as they are designed tofurther the fundamental Community objectives of a soundly basedrailway system and closer cooperation between national railway under-takings;Z. Stresses that the achievement of financial balance by railway under-takings is aLso bound up with the harmonization of conditions ofcompeEition vis-i-vis other modes, and that the target date ofJanuary I990 for achieving financial balance is also depcndent oneai:Iy action having been taken to harrnonize competitive conditions;3. Believes that, with regard to the granting of aid for rail infra-structure, due account should be taken of the net social benefitsof the railways;1 oJ no.c 37 , 2o.2.I981 , p.7 and I02 oJ *o . L L52, 12.6.Lg75, p.33 o,l no. c Lg7, 4.8.1980, p.73- 6- P872.649/fLn.4. strecaee that greater comparabirity of profit and lose aceounts,while rccognieed as vital, ehourd not be progresged so far inadvance of the normalisation of national accounting systema thatany raihay administration is placed under the obrigation ofproducing tlro teparate scts of accounts, thus increasing its costsand disadvantaging it stitl further vis-i-vis competitive transportmodea.5. Calls upon the Commission to amend its definition of financial balanceso that the expenses of a railway undertaking are required to becovered iTaking one year with another" instead of ,,each year', in orderto allow for the normal fluctuations of trade in a constantly changingmarket sUbJect to different economic factors;6. Emphasises the need for the Commission to dispose of sufficient staffresourceE if it is effectively to 'advise the Member States on themeans of echieving financial balance'I;7. Calls upon the Commission to adopt the aforegoing amendrnent pursuantto Article I49, second paragraph, of the EEC Treaty,8. APProv€s tha Commieaion pro;rcaa1s aubject to the above conditiong.I COr(gO) gOO final, Explanatory memorandum para. 13(b)-7- PE 72.649/fin.BEXPIAMIORY SBTE!4ENII Backqround1. The submission of these two Propositions corresPonds to the wishexpressed in the IIYBORG rePort (Doc. La2/781 on'the Corunission proposalfor a regulation amending Regulation @EC) No. LL92/69 on cornmon rulesfor the normalization of the accounts of railway undertakings.Paragraph 3 of the resolution contained in thig rePort 'reguests theCommission to drav, up further proposals aimed at placing the finances ofrailway undertakings on a sounder footing and at bringing about closercooperation between national railway cotnPaniest.2. Furthermore, the proposals also correspond to the wish reflected inthe COTTRELL report on the integration of railway undertakings at Corununitylevel (Doc. 1-267/801, which points out (Part VI, paragraph 6) that, underthe terma of Article 15(I) of the Couneil Decision of 20 l,[ay 1975, 'beforeI January 1980, the Commission shall submit to the @uncil proposalsfor achieving the financial balance of the railway undertakinga' .3. It is thus clear from the above that, even if the Commission hasencountered some difficulty in meeting the deadllne originally fixed,these two proposals, the legal basis for which is provided by theCouncil Decision ot 20 llay 1975, are designed'to fulfil a long-standing Community objective in the railway sector. Indeed, the recentCommission communication entitled 'Comrnunity railway policy: review andoutlook for the 1980's' lays down two basic objectives for Corununityrailway policy:(i) elimination of distortions in bhc inland LranaPortmarket, and. (ii) improvement of the railway service perforrnance andfinancial situation.II Broposal for a requtation settinq the time limit and conditions for theachievement of Financial balance bv railwa,v undertakincrs4. Follorring consultations with government and rail ex5rrts and the tradeuniong, the Commission has drawn up a multi-stage Progranme for theachievement of financial balance. With a view to implementing thisprogramme, the Commission is now proposing a regulation fixing a suitabletime-limit and conditions.-g- P872.649/fLn.5- Your rapporteur shares the conunission's view that this proposalought to herp the rairways to regain their flnanciar balance, and thusimprove their competitiveness on the market. Hohrever, he stresses in thisconnection the need to ensure the harmonization of conditions of competitionvis-i-vis ottrer modes.6. On a more specific point, your rapporteur fully endorses the view thatprogress is needed towards greater comparabirity of profit and lossaccounts, and trusts that the Advisory committee set up under councirReguration (EEC) No. 2B3o/77 wirr work rapidry towards this end.7 ' with regard to the granting of infrastructure aid to railways as referredto in ;nragraph 8 of the commission's explanatory memorandum, due accountshould be taken of the social benefits of the rairways when fixing thevolume of guch aid.8. The comnission takes the view that the Member states should be able toimplement the first part of this Regulation by 31 December Lgg2, and theproposal provides that a1I the railways should achieve financial balanceby 1 January 1990 at Lhe latest. The commission nevertheless recognizesthat after this date States will necessarily continue to retain a degreeof freedom in their rail investment g:olicy.rrr Proposal for amendinq thc Decision 75l327,/EEc on the improvement of.the9. the text of the 1975 Decisionbusiness and financial programmesenabling the railways to plan thebalance.makes it clear that the railwalzs,are regarded as an essential means ofmeasures designed to achieve financialIt is therefore proposed that:(i) the progranmes be multiannual,(ii) the comrnission should be informed of these prograrunes beforethey are adopted in order to advise the Member states on themeans of achieving financial balance, and(iii) guidelines should be set out for drawing upfinancial prograrunes (see proposed Annex tobusiness and, the Decision).-9- pE 72.oqg/fin.10. your rapporteur suPPorts these proposed measuresr and the proposalthat the application of this Regulation should be covered in the two-parly report on the operation of the 1975 Decision- lle would stress,however,theneedfortheCommissiontodisposeofsufficientstaffresources if it. is effectively to advise the Menber States on the meansof achieving financial balance, pursuant to Article 2 of thle proposeddecision amending Decision 75 /327 /EEc'IV CONCLUSIONIl. Subject to the above considerations and the following amendmentthe Committee on TransPort apProves the two Corunission ProPosals, inthe general interest of Community railway policy and, in particular,r*ith a view to improving the financial situatiolr of the national rail-way undertakings.L2. 11lhe Committee nonetheless urges the Commission to amend Article 2of the first proposed regulation by replacing the final phrase with'covered by its revenue takinq one year with another'-lo- PE 72.649/tin.

Report
drawn up on behalf of the Committee on Transport
on the proposals from the Commission of the European Communities to the Council (Doc. 1-892/80) for I. a Regulation setting the time limit and conditions for the achievement of financial balance by railway undertakings II. a Decision amending the Decision 75/327/EEC on the improvement of the situation of railway undertakings and the harmonization of rules governing financial relations between such undertakings and States. EP Working Documents, document 1-564/81, 9 October 1981.

Name not available

Report drawn up on behalf of the Committee on Transport
on the proposals from the Commission of the European Communities to the Council (Doc. l-892/80) for

I. a Regulation setting the time limit and conditions for the achievement of financial balance by railway undertakings

II. a Decision amending the Decision 75/327/EEC on the improvement of the situation of railway undertakings and the harmonization of rules governing financial relations between such undertakings and States. EP Working Documents 1981-82, Document 1-564/81, 9 October 1981

European Communities
EUROPEAN PARLIAMENT
Wbrking Documents
1981-1982
9 October l9tl DOCUMENT I.564/8I
Report
drawn up on behalf of the Committee on Transport
on the proposals from the Commission of the European Communities to
the Council (Doc. l{92l80) for
I. a Regulation setting the time limit and conditions for the
achievement of financial balance by railway undertakings
II. a Decision amending the DecisionT5/327/EEc on the improvement
of the situation of railway undertakings and the harmonization of
rules governing financial relations between such undertakings and
States
Rapporteur: Mr C. RIPA DI MEANA
English Edition PE 72.649/fn.

By letter of 9 February 1981 the council requested the urrroo""n parriamentto deliver an opinion on the proposals from the commiseion of the Europeancommunities to the council for a reguration setting the time limit and conditionefor the achievement of financial balance by railway unqertakings, and for adccieion amending the Decision 75/3277T;EC on the improvement of the situationof railway undertakings and the harmonization of rures governing financialrelations between such undertakings and States.
The President of the European parliament referred
Committee on Transport.
these_ pr_oposals to the
On 22 February 1981_ the Committee appointed !j!r RIPA di MEANA rapporteur.
rt considered the draft report at its meetings of 26 June and r october
I98l and at the latter meeting unanimousry adopted the motion for a resorution
and explanatory etatement.
Present: I'1r seefeld, chairmanr Dame shelagh Roberts and Mr carossino,
vice-chairmeni lilr Ripa di Meana, raPPorteuri Mr Albers, Mr Baudis,
Mr Buttafuoco, !!r Cottrell, Mr K. Fuchs (deputizing for Mr Hoffmann),
Lord Harmar-Nicholls, Mr Klinkenborg, Mr ltoreland, Mr Travaglini, and
Mr Veronesi (deputizing for !,Ir Cardia) .
-3 PE 72.549/fLn-
CONTENTS
Amendnent
A. I.,IOTION FOR A RESOLUTI0DI
B. EXPI.ANAIORY STATEMENT ..
Paqe
5
6
I
-4 PE 72.649/fi.n.
The Conunitt€c on Transport hereby submits to the European Parliament the
following anendment and Motion for a Resolution together with explanatory
statement:
AMENDMENT
Commiesion ProPosal
for a Councll regulation setting the time-limit and conditions for the
achievement of financial balance by railway undertakings-1
.Artic1e_2: Replace the words 'covered by its revenue each year' and
' covered by its revenue taE!ry--gng.--Y9-U.-ly.ith another' .
I 
" 
37, zo.z.Lgat, p.7
-5- PE 72.649/fLn/An.
Al4oTroN FoR A RE9oLUTION
embodying the opinion of the European Paru.rment on the ProPoeals frorn the
conmission of the European conmunities to the council for:
I. a Regulation setting the time llmit and conditions for the achievement
of financial balance by railway undertakings
II. a Decision amending the Decision 75/3721E8c on the improvement of the
situation of railway undertakings and the harmonizatl'on of rules govern-
ing financial relationg between such undertakings and statee
The European Parliament,
- having regard to the proposals from the Commission of the European
Communities to the CounciIl,
- 
having been consulted by the Council pursuant to Article 75 of the EEC
Treaty (Doc. 1-892/801,
- having regard to Article I5(1) of the Council Decision of 20 t'tay 1975
on the improvement of the situation of railway undertakings and the har-
monisation of rules governing financial relations between such under-
takings and States2,
- having regard to its resolution of 11 JuIy 1980, in particular paragraph
8 thereof r 3
- having regard to the report of the Committee on Transport (doc.1-554/ALl,
I. Welcomes the Commission proposals inasmuch as they are designed to
further the fundamental Community objectives of a soundly based
railway system and closer cooperation between national railway under-
takings;
Z. Stresses that the achievement of financial balance by railway under-
takings is aLso bound up with the harmonization of conditions of
compeEition vis-i-vis other modes, and that the target date of
January I990 for achieving financial balance is also depcndent on
eai:Iy action having been taken to harrnonize competitive conditions;
3. Believes that, with regard to the granting of aid for rail infra-
structure, due account should be taken of the net social benefits
of the railways;
1 oJ no.c 37 , 2o.2.I981 , p.7 and I0
2 oJ *o . L L52, 12.6.Lg75, p.3
3 o,l no. c Lg7, 4.8.1980, p.73
- 6- P872.649/fLn.
4. strecaee that greater comparabirity of profit and lose aceounts,
while rccognieed as vital, ehourd not be progresged so far in
advance of the normalisation of national accounting systema that
any raihay administration is placed under the obrigation of
producing tlro teparate scts of accounts, thus increasing its costs
and disadvantaging it stitl further vis-i-vis competitive transport
modea.
5. Calls upon the Commission to amend its definition of financial balance
so that the expenses of a railway undertaking are required to be
covered iTaking one year with another" instead of ,,each year', in order
to allow for the normal fluctuations of trade in a constantly changing
market sUbJect to different economic factors;
6. Emphasises the need for the Commission to dispose of sufficient staff
resourceE if it is effectively to 'advise the Member States on the
means of echieving financial balance'I;
7. Calls upon the Commission to adopt the aforegoing amendrnent pursuant
to Article I49, second paragraph, of the EEC Treaty,
8. APProv€s tha Commieaion pro;rcaa1s aubject to the above conditiong.
I COr(gO) gOO final, Explanatory memorandum para. 13(b)
-7- PE 72.649/fin.
BEXPIAMIORY SBTE!4ENI
I Backqround
1. The submission of these two Propositions corresPonds to the wish
expressed in the IIYBORG rePort (Doc. La2/781 on'the Corunission proposal
for a regulation amending Regulation @EC) No. LL92/69 on cornmon rules
for the normalization of the accounts of railway undertakings.
Paragraph 3 of the resolution contained in thig rePort 'reguests the
Commission to drav, up further proposals aimed at placing the finances of
railway undertakings on a sounder footing and at bringing about closer
cooperation between national railway cotnPaniest.
2. Furthermore, the proposals also correspond to the wish reflected in
the COTTRELL report on the integration of railway undertakings at Corununity
level (Doc. 1-267/801, which points out (Part VI, paragraph 6) that, under
the terma of Article 15(I) of the Couneil Decision of 20 l,[ay 1975, 'before
I January 1980, the Commission shall submit to the @uncil proposals
for achieving the financial balance of the railway undertakinga' .
3. It is thus clear from the above that, even if the Commission has
encountered some difficulty in meeting the deadllne originally fixed,
these two proposals, the legal basis for which is provided by the
Council Decision ot 20 llay 1975, are designed'to fulfil a long-
standing Community objective in the railway sector. Indeed, the recent
Commission communication entitled 'Comrnunity railway policy: review and
outlook for the 1980's' lays down two basic objectives for Corununity
railway policy:
(i) elimination of distortions in bhc inland LranaPort
market, and
. 
(ii) improvement of the railway service perforrnance and
financial situation.
II Broposal for a requtation settinq the time limit and conditions for the
achievement of Financial balance bv railwa,v undertakincrs
4. Follorring consultations with government and rail ex5rrts and the trade
uniong, the Commission has drawn up a multi-stage Progranme for the
achievement of financial balance. With a view to implementing this
programme, the Commission is now proposing a regulation fixing a suitable
time-limit and conditions.
-g- P872.649/fLn.
5- Your rapporteur shares the conunission's view that this proposal
ought to herp the rairways to regain their flnanciar balance, and thus
improve their competitiveness on the market. Hohrever, he stresses in this
connection the need to ensure the harmonization of conditions of competition
vis-i-vis ottrer modes.
6. On a more specific point, your rapporteur fully endorses the view that
progress is needed towards greater comparabirity of profit and loss
accounts, and trusts that the Advisory committee set up under councir
Reguration (EEC) No. 2B3o/77 wirr work rapidry towards this end.
7 ' with regard to the granting of infrastructure aid to railways as referred
to in ;nragraph 8 of the commission's explanatory memorandum, due account
should be taken of the social benefits of the rairways when fixing the
volume of guch aid.
8. The comnission takes the view that the Member states should be able to
implement the first part of this Regulation by 31 December Lgg2, and the
proposal provides that a1I the railways should achieve financial balance
by 1 January 1990 at Lhe latest. The commission nevertheless recognizes
that after this date States will necessarily continue to retain a degree
of freedom in their rail investment g:olicy.
rrr Proposal for amendinq thc Decision 75l327,/EEc on the improvement of
.the
9. the text of the 1975 Decision
business and financial programmes
enabling the railways to plan the
balance.
makes it clear that the railwalzs,
are regarded as an essential means of
measures designed to achieve financial
It is therefore proposed that:
(i) the progranmes be multiannual,
(ii) the comrnission should be informed of these prograrunes before
they are adopted in order to advise the Member states on the
means of achieving financial balance, and
(iii) guidelines should be set out for drawing up
financial prograrunes (see proposed Annex to
business and
, the Decision).
-9- pE 72.oqg/fin.
10. your rapporteur suPPorts these proposed measuresr and the proposal
that the application of this Regulation should be covered in the two-
parly report on the operation of the 1975 Decision- lle would stress,
however,theneedfortheCommissiontodisposeofsufficientstaff
resources if it. is effectively to advise the Menber States on the means
of achieving financial balance, pursuant to Article 2 of thle proposed
decision amending Decision 75 /327 /EEc'
IV CONCLUSION
Il. Subject to the above considerations and the following amendment
the Committee on TransPort apProves the two Corunission ProPosals, in
the general interest of Community railway policy and, in particular,
r*ith a view to improving the financial situatiolr of the national rail-
way undertakings.
L2. 11lhe Committee nonetheless urges the Commission to amend Article 2
of the first proposed regulation by replacing the final phrase with
'covered by its revenue takinq one year with another'
-lo- PE 72.649/tin.


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