Public service obligations in railway transport

Abstract

European authorities have defined a detailed and comprehensive legal regime on public service obligations to be imposed on railways undertakings /Regulation 1370/2007). The general regime on services of general economic interest facilitates the interpretation of the Regulation. Spanish legislation, both the transitory regime in LOTT and LES and the definitive regimen in the Railway Industry Act, need to be amended to be fully compliant with the European regime. Furthermore, liberalization on July 31, 2012 requires a further review of the national policy on railway transport. Uncertainty is increased as the European Commission has presented a proposal to amend Regulation 1370/2007 in the framework of the Fourth Railway package.