Critical Call from the European Railway Sector

The European railway sector has a strong commitment to future research and innovation, EU-Rail Joint Undertaking (Shift2Rail)made an official application to the European Commission for the continuation of the model. The five major European railway associations (CER, EIM, UIP, UITP and UNIFE) insist that this partnership model be continued within the scope of the 2028-2034 Multiannual Financial Framework (MEF) and gain a solid place among the EU’s financing priorities. The aim is to maintain the development momentum of the entire European railway sector, from mainline operations to regional and urban systems.

EU-Call for Rail Successor for Rail Innovation

The associations state that this new structure is vital to promote technological sovereignty, green and digital transformations and increase Europe’s global competitiveness. Moreover, 2028-2034 EQFwithin the scope of a new European Competition Fund (ECF)They also support the proposal to create ECF is seen as a key tool to accelerate the transition of rail innovation to commercial implementation.

Financing Needs within the Scope of Horizon Europe and ECF

The industry has set ambitious but necessary funding targets for the successor partnership:

Successor Partnership Investment:With the aim of mobilizing long-term private capital and achieving the objectives of the Single European Railway Area, minimum of 3 billion eurosfor an investment and pre-implementation phase 15 billion eurosAdditional support is requested.

Pre-Distribution Financing:ECF, through national plans and private investments, to mature technologies and distribute them to the market faster 15 billion eurosA pre-distribution financing proposal is offered.

Budget Breakdown:In the next EQF’s total budget of 1.8 trillion euros, 243 billion euros to the European Competitiveness Fund (ECF)And 51 billion euros to the Transport component of the Connectivity Europe Facility (CEF)is planned to leave. The organizations want half of the railway R&D budget to be covered by Horizon Europe and the rest from the industry.

Inclusive Partnership and Simplification

The partnership framework is intended to encourage the broadest possible participation of public and private organizations. Therefore, members exemption from the obligation to make direct financial contributionsIt is emphasized that it is necessary.

In-Kind Contributions:Particularly in local and urban rail markets Small and Medium Enterprises (SME)It is requested that in-kind contributions be accepted as a valid means of participation.

Reducing Administrative Burden:The aim is to better involve SMEs and reduce administrative burden while focusing on technical content.

It is essential to maintain an inclusive partnership framework linking the European Commission, the European Union Rail Agency (ERA), industry, operators, infrastructure managers, research institutes and SMEs. This framework should ensure the active participation of all key stakeholders in shaping future research and innovation priorities for rail.

Synergies Between CEF-Transport, NRPP and Horizon Europe

The associations are calling for stronger synergies between the transport finance components of the Multiannual Financial Framework. CEF-TransportationThey expressed their strong support for the instrument, describing it as the backbone of the EU transport infrastructure investment policy.

Increasing the CEF Budget:CEF budget for adequate financing of transportation investments to 100 billion eurosand preserving the option of transferring resources from National and Regional Partnership Plans (NRPP) to CEF.

Organizations want the differences, commonalities and connections between the Horizon Europe, NRPP and CEF-Transport programs to be clearly defined together with industry stakeholders. It is believed that by clarifying how these vehicles work together, the EU can make the most of these ambitious programs and ensure that the planned successor to the EU-Rail Joint Undertaking will deliver tangible benefits across the entire European rail system.