European Rail Associations Urge EU Commission for Rail Innovation Funding

Five prominent European railway associations are urging the European Commission to establish a robust successor to the EU-Rail Joint Undertaking under Horizon Europe. This initiative aims to bolster the European railway sector’s development and competitiveness, coinciding with the associations’ endorsement of the proposed new European Competitiveness Fund (ECF) within the 2028-2034 multiannual financial framework.

Main Body:

The collective voice of CER, EIM, UIP, UITP, and UNIFE signifies a unified push for continued and amplified innovation within the European rail sector. The proposed successor to the EU-Rail Joint Undertaking is envisioned as a cornerstone for future growth, with a call for a minimum investment of EUR 3 billion, augmented by EUR 15 billion dedicated to its pre-implementation phase. This substantial financial backing is intended to stimulate long-term private investment, enhance the global competitiveness of the European rail energy supply industry, and crucially, drive the realization of a single European railway area. Furthermore, the scope of this successor initiative would extend to encompass regional and urban rail systems, fostering a more integrated and strengthened European rail industry.

Strategic Impact

The associations emphasize that the legal framework governing the successor partnership must facilitate broad participation from both private and public entities by ensuring no direct financial contributions are mandated from members. The option for contributions in kind is presented as a critical enabler, particularly for smaller players in the local and urban rail market, thereby fostering deeper industry commitment and dedication to a forward-thinking rail sector. This approach aligns with Horizon Europe’s objectives of enhanced SME inclusion and administrative burden reduction, prioritizing technical advancements and tangible results over bureaucratic hurdles.

Operational Details

A key point raised by the associations concerns the need for clarity and predictability in budgetary commitments for the EU-Rail successor. They advocate for a fixed commitment model, with a 50% contribution from the EU and 50% from the industry. This contrasts with the current flexible model where a reduction in EU contribution must be offset by industry, creating potential financial strain. Given the long-term nature of such partnerships, flexibility in budget allocation and the management of competitive calls is also deemed essential to adapt to evolving industry needs and technological advancements.

Industry Context

These strategic recommendations arrive at a pivotal moment, with the upcoming multiannual financial framework (MFF) of EUR 1.8 trillion, including substantial allocations for the European Competitiveness Fund (ECF) and the Connecting Europe Facility (CEF) transport component. These significant investments underscore the European Union’s dedication to technological sovereignty, its commitment to green and digital transitions, and its pursuit of global competitiveness. For industry leaders, the establishment of a well-funded and strategically aligned successor to EU-Rail, alongside the broader MFF investments, presents a clear opportunity to leverage public-private collaboration for innovation, market expansion, and the sustainable development of the entire European rail ecosystem.