Transport in the European Union

Ismail Ertug, Member of the European ParliamentEAPA Conference, 4. June 2015

Overview

I. Introduction• Personal background• The European Parliament• TRAN Committee

II. Infrastructure• Trans-European Transport Network (TEN-T) • Connecting Europe Facility (CEF)• European Fund for Strategic Investments (EFSI)• The case of Germany

III. Questions and answers

Ismail Ertug, MEP 2

I. Introduction: personal background

• born 1975 in Amberg, Germany• since 2009

Member of the European Parliament, currently Coordinator of the S&D Group in the Committee on Transport and Tourism (TRAN)

Substitute Member of the Committee on Environment, Public Health and Food Safety (ENVI)

Member of the Delegation of the Parliamentary Cooperation Committees EU-Kazakhstan, EU-Kyrgyzstan and EU-Uzbekistan and also for the relations with Tajikistan, Turkmenistan and Mongolia

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Personal background

• Member of the Delegation for relations with the countries of Southeast Asia and the Association of Southeast Asian Nations (ASEAN).

• since 2002 held different positions in local politics at SPD Amberg

• Prior Professional Experience 1996 - 2009 different positions in the national health insurance sector 2002 graduated as Health insurance Business Economist 1996 graduated as industrial clerk

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The European Parliament

• the only directly & democratically elected EU institution since 1979

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The European Parliament

• The Parliament adopts its positions by voting in plenary session on legislative and budgetary texts, as well as on own-initiative reports and other resolutions.

• The Parliament has 20 standing committees, which prepare the ground for legislation; formulate, draft and amend legislative proposals from the Commission and hold public hearings on key issues (example: TRAN hearing on infrastructure financing or social conditions in road transport).

• In the course of the legislative process, representatives of EP committees meet frequently with their counterparts in the Council of Ministers and the European Commission, in so-called ‘trilogue’ negotiations.

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Committee on Transport and Tourism (TRAN)

• TRAN deals with legislation in the area of the different transport modes: Rail: 4th Railway Package, etc. Road: Road charging, etc. Aviation: Single European Sky, etc. Water: NAIADES II (inland waterway transport), Port Package, etc.

• It also deals with legislation directly linked to transport Safety & working conditions: „Vision Zero“, driving & rest times of

drivers, etc. environment: noise and emission reduction of vehicles, etc. Consumers: passenger rights, multimodal ticketing systems, etc.

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II. Infrastructure: Trans-European Transport Networks (TEN-T)Trans-European Transport Networks (TEN-T)• Support, development and maintenance of strategically important

transport infrastructure throughout the EU

TEN-T Guidelines • improving the EU‘s competitiveness• creation of Jobs • cohesion

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TEN-T: Core-Network

- 9 corridors

- multimodal

- funding of cross-border connections

- completion of networkuntil 2050

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Core- Network:

. Inland Waterways

. Inland Ports

. Sea Ports

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Core-Network:

. Rail: Freight

. Rail terminals

. Ports

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Core-Network:

. Rail: Passenger

. Airports

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Core-Network:

. Road

. Rail terminals

. Ports

. Airports

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Connecting Europe Facility (CEF)

Since 2014 the EU‘s new financial instrument

• around 23,5 bn Euro for the period 2014-2020 (three times the amount for the period 2007-2013)

• 12. bn Euro of CEF reserved for all 28 EU Member States, 11.3 bn Euro for EU cohesion countries (countries with a Gross National Income (GNI) per inhabitant of below 90% of the EU-average, example: Bulgaria, Croatia, Greece, Portugal, Romania etc.

There is an urgent need to find additional investment sources • The European Commission estimates that the development of the TEN-T

Networks in the period 2014-2020 will require 500 bn Euro• Therefore, CEF is a vital instrument, but the financing of European

infrastructure cannot be successful without additional financial resources from the Member States!

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Connecting Europe Facility (CEF)

What projects does CEF fund?

• Projects in the area of transport-, energy- and telecommunications infrastructure

• In the area of transport, especially projects that aim at:

Removing bottlenecks and bridging missing links Ensuring sustainable and efficient transport in the long run (especially railway

and inland waterways) Optimise the integration and interconnection of transport modes and

enhancing interoperability of transport services. (example : connection of ports and airports with the railway network)

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CEF funding rates

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Project Area Max. funding rateStudies all transport modes 50 %Rail cross-border 40 %

removing bottlenecks 30 %other 20 %

Inland Waterways cross-border 40 %removing bottlenecks 40 %others 20 %

Road cross-border sections 10 %

Rail- or road connections to ports and airports 20 %

Development of ports and multimodal platforms, freight transport services 20 %

Motorways of the Sea 30 %Measures aimed at noise reduction of rail freight transport 20 %

Transport management systems(Rail/Air/Water/Road) ERTMS 50 %

SESAR (air traffic management system) 50 % / 20 %RIS, VTMIS (vessel traffic service, water) 50 % / 20 %ITS (Intelligent Transport Systems, road) 20 %

Safe parking spaces for trucks in the core network 20 %New technologies and innovations 20 %

Connecting Europe Facility (CEF) Application for CEF Funds

• only as a reaction to a call of the Innovation and Networks Executive Agency (INEA).

• First CEF-Call for Transport was 11. September 2014; Deadline 3. March 2015

Next Call expected for end of 2015

Where to hand in application?• Different procedures for every EU Member State• In Germany all application need to be handed in at the Ministry for Transport

and Infrastructure

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European Fund for Strategic Investments (EFSI)Commission President Juncker‘s Investment Plan for Europe

• The Investment Plan for Europe aims to encourage investment in strategic projects around Europe to ensure that money reaches the real economy. This should unlock additional public and private investment of at least 315 bn Euro over the next three years.

The European Fund for Strategic Investments (EFSI)• aims to overcome the current market failure.• EFSI will: address market gaps by taking on some of the risk. mobilise private investment and other relevant public funding

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European Fund for Strategic Investments (EFSI)

• EFSI focus in the area of transport: Strategic infrastructure including digital, transport and energy in

particular energy interconnections and urban development

There is an urgent need to improve transport infrastructure in the European Union! Example: Germany

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The case of Germany• The value of German infrastructure decreases daily by 13 million

Euros• The costs to renew and maintain existing infrastructure amount to

annually around 7 bn Euro• Competition issue: Germany as a location for business becomes

more and more unattractive and more and more businesses move their production to other countries

• Another issue: There is a lack of expertise in the area of infrastructure development (Planers, engineers, consultants, etc.), not enough academic programs for students in these areas

• possible financial solutions: additional infrastructure financing from the EU and EU member states through distance-based road charging for commercial and private vehicles

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Questions & Answers

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