The Finances and State Funding of European Railways

Advisory Services

The Situation

In the 1990s the European Commission (EC) identified the poor financial health of many European railways as a major obstacle to revitalizing the sector. The EC subsequently issued Directive 91/440, establishing a framework requiring European Union Member States to relieve railways of historic debt and establish them on a sound financial basis.

NERA's Role

NERA undertook a detailed review of the financial position and funding of European railways over the period 1995 to 2001. The project covered 27 European countries, with a closer examination of the 15 Member States, Norway and Switzerland. In addition, NERA reviewed the main institutional changes which occurred over the period and the operating performance of the railways.

The Result

The project has proven to be ground-breaking in the breadth and depth of analysis of public support and finances to the railways. It forms a strong basis for making comparisons of public support, finances, and performance between countries, as well as providing a framework for future monitoring.

Expert Involved

Emily Bulman, Senior Consultant