Government outlines its positions on Commission proposals for Land and Multimodal Transport Guidelines and Transport Block Exemption Regulation

On 12 September 2024, the Government submitted a Union communication to Parliament outlining its positions on the Commission’s proposals for new Guidelines on State aid for land and multimodal transport and a new Transport Block Exemption Regulation. The Government welcomes the Commission’s proposals in principle.

The new Guidelines on State aid for land and multimodal transport proposed by the Commission will replace the current Guidelines on State aid for railway undertakings. The scope of the Guidelines will also be broadened to cover rail and inland waterway transport as well as sustainable multimodal transport. The Guidelines aim to support transport market liberalisation and compatible transport markets within the EU.

The new Transport Block Exemption Regulation will exempt certain categories of State aid from the requirement of prior notification to the Commission. The aim is to simplify and clarify the practices related to State aid granted particularly to more sustainable modes of transport.

The Government considers it important that the Guidelines on State aid for railway undertakings be updated and their scope of application broadened. Many parts of the current Guidelines are currently out of date, and in practice, they are no longer applied.

The Government considers that a sustainable transport sector is key to ensuring connectivity across Europe. The sector also promotes economic, social and territorial cohesion in Europe.

However, in its position, the Government proposes that certain specifications be made during further preparation of the proposal. It also emphasises that a sufficiently strict state aid policy and effective oversight are important not only in terms of the functioning of the single market but also in terms of the competitiveness of Finland and Europe.

What’s next?

The Union communication will next be discussed by Parliament. The Commission’s proposals will continue to be discussed by the EU. The revised Guidelines on State aid for land and multimodal transport and the new Transport Block Exemption Regulation are to be adopted at the end of 2025.

Inquiries:

Emmi Nykänen, Ministerial Adviser, emmi.nykanen(at)gov.fi, tel. +358 295 342 114

Elli Koistinen, Coordinator, elli.koistinen(at)gov.fi, tel. +358 295 342 152