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| Regulation (EC) No 1370/2007 | |
|---|---|
| Title | Regulation (EC) No 1370/2007 |
| Type | European Union regulation |
| Adopted | 23 October 2007 |
| Published | 2007 |
| Repealed | 2021 (by later instrument) |
| Subject | Public passenger transport by rail and road |
| Legal basis | Treaty establishing the European Community |
Regulation (EC) No 1370/2007
Regulation (EC) No 1370/2007 is a European Union instrument governing public passenger transport by rail and road within the European Union framework. It was adopted amid debates involving European Commission, European Parliament, Council of the European Union, and national authorities including Bundesregierung, Government of France, and Government of Italy. The text aimed to reconcile market liberalisation pressures associated with World Trade Organization rules and World Bank advice with social priorities championed by institutions such as International Labour Organization and European Trade Union Confederation.
The regulation emerged from a policy process involving the European Commission Directorate-General for Mobility and Transport, consultations with the European Economic and Social Committee, and deliberations in the European Parliament influenced by rapporteurs from Christian Democratic Group and Progressive Alliance of Socialists and Democrats. Historical precedents included directives on Railways Act 1993-era reforms in the United Kingdom, measures following the Treaty of Maastricht, and initiatives prompted by rulings of the Court of Justice of the European Union. Debates referenced experiences of operators such as Deutsche Bahn, SNCF, and Ferrovie dello Stato Italiane and drew comparisons with New York Metropolitan Transportation Authority reforms and procurement practices in Japan and Germany.
The regulation applied to public service obligations for passenger transport by rail and road provided within member states including Kingdom of Spain, Republic of Poland, Hellenic Republic, and Kingdom of Sweden. Its objectives echoed policy aims of Treaty on the Functioning of the European Union: to ensure continuity of services, improve quality for passengers traveling to hubs like Gare du Nord, Berlin Hauptbahnhof, and Roma Termini, and to establish uniform rules for compensation and contracts involving authorities such as London Boroughs and regional administrations like Catalonia and Bavaria. It sought balance between instruments promoted by Organisation for Economic Co-operation and Development and social safeguards advocated by Confédération Européenne des Syndicats.
Key provisions defined the concept of a public service obligation, eligibility for compensation, and conditions under which authorities could award exclusive rights to operators such as National Express Group, Veolia Transport, and Arriva. The regulation required transparency in compensation, limited distortive subsidies linked to cases considered by the European Commission Directorate-General Competition, and set procedural safeguards consistent with jurisprudence from the European Court of Justice and precedents like Case C-280/00. It stipulated requirements affecting infrastructure managers like Infrastructure Manager of Poland and rolling stock providers including Alstom, Siemens, and Bombardier Transportation.
The text permitted negotiated and competitive procedures for awarding public service contracts, referencing procurement frameworks similar to those used by European Investment Bank-funded projects and public tenders conducted by municipalities such as City of Paris and City of Rome. It allowed direct awards under strict conditions, required objective and non-discriminatory award criteria as practised in procurement by City of Ljubljana and City of Vienna, and set maximum contract durations comparable to concessions seen in Port of Rotterdam agreements. The regulation interacted with directives like the Public Procurement Directive and standards applied by bodies including European Committee for Standardization.
The regulation contained provisions to protect staff affected by transfers of public service contracts, drawing on principles from the Acquired Rights Directive and case law such as Süzen v Zehnacker Gebäudereinigung GmbH. It required continuity of employment terms for workers moving between operators like Transdev and FirstGroup and promoted social dialogue involving actors such as European Transport Workers' Federation, Trades Union Congress, and national unions including CGT and IG Metall. Measures addressed pension rights, collective agreements exemplified by arrangements in Swedish Transport Workers' Union, and transition arrangements comparable to those negotiated during restructurings at British Rail.
Member states were required to transpose administrative arrangements through national authorities such as Ministry of Transport (Poland), independent regulatory bodies like Office of Rail and Road (UK), and regional governments in Scotland and Catalonia. Enforcement relied on complaint mechanisms before the European Commission and litigation before the Court of Justice of the European Union; cases involving rail liberalisation had parallels with disputes heard by the General Court of the European Union. The regulation interfaced with state aid rules enforced by the European Commission Competition Directorate and monitoring by agencies such as European Union Agency for Railways.
Subsequent EU legislation, evolving case law from the Court of Justice of the European Union, and policy initiatives by successive European Commissioners led to amendments and eventual replacement by later instruments aligned with the Fourth Railway Package. The regulation’s legacy influenced contract models used by operators like SNCF Voyageurs, regulatory practices in Netherlands, and debates in forums such as European Transport Conference and International Association of Public Transport (UITP), while informing discussions in national parliaments including Bundestag and Assemblée nationale about public service provision and market opening.