03 June 2022


On 2 June, the European Commission approved, under EU State aid rules, a €8 million Slovenian scheme to encourage freight transport to shift from road to rail and to remove barriers to interoperability.

The scheme, which will be funded through the Recovery and Resilience Facility (‘RRF'), aims to remove technical barriers to rail interoperability, and to promote the modal shift of freight transport from road to rail. Under the scheme, the support will take the form of direct grants to rail freight companies to finance the integration of the European Train Control System (‘ETCS') Level 2 into the existing rolling stock. The ETCS is the signalling and control component of the European Rail Traffic Management System (ERTMS). The scheme will therefore support the implementation of the ERTMS, which enhances cross-border rail interoperability and improves the competitiveness of rail transport. The scheme will run until 30 June 2026.

The Commission assessed the measure under EU State aid rules, and found that it is necessary and proportionate to support interoperability and promote the use of rail transport. Furthermore, the Commission found that the aid will have an 'incentive effect' as the beneficiaries would not carry out the investments in the absence of the public support. On this basis, the Commission approved the scheme under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.100432 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.

Source: European Commission