New EU Rail Rules May Change Competition with Airlines

The European Parliament voted Thursday in favor of opening international passenger rail services to cross-border competition by 2010, as railways seek to boost passenger numbers amid stiff competition from airlines.

The EU assembly rejected another proposal, however, to liberalize domestic train lines by 2017, after it met resistance from countries where state companies dominate the market, such as France, Belgium and Austria.

Smaller EU states, including Luxembourg and some Central European countries, also fear their national rail providers could fold if a giant company, such as Germany's DB, entered their market.

Under EU rules, the 27 member states and the European Parliament must decide on the issue together. EU governments already have backed plans to open the international rail market and allow European companies to operate any line abroad.

In a package of rules to govern the EU railway sector, lawmakers also voted in favor of setting minimum standards on compensation for delays on domestic and international routes, and of certifying train crews to show they meet professional, medical and linguistic standards.

Under the rules, passengers could be compensated 25 percent for an hour's delay, if the operator is responsible, or 50 percent for a delay of two hours or more.

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