The European Commission said today it had forced Italy's rail operator to let a foreign firm offer rival passenger services on its tracks, setting a precedent that could lead to more competition on EU railways.
The Commission said Ferrovie dello Stato (FS) has abused its monopoly position by refusing track access and traction to private German rail firm Georg Verkehrsorganisation (GVG) which hoped to set up a service from Germany to Milan via Switzerland.
The Commission, the EU's competition watchdog which has the power to fine firms that abuse a dominant market position, said FS had now relented and would allow GVG into the market which it has been trying to enter since 1995.
"This is a landmark decision for competition in the European rail market," EU Competition Commissioner Mr Mario Monti said in a statement. His spokeswoman said it had set a precedent. "If there are other companies that would want to start similar international services they would now see the situation clarified," Ms Amelia Torres said at a Commission news briefing.
"This would also give them greater leverage in negotiating agreements with incumbent railway companies."
Ms Torres said the Commission was still in talks with Germany's Deutsche Bahn over allowing GVG access to run a service between Malmo in Sweden and Frankfurt. The decision, which effectively means national railways can not stop other EU rail firms offering international services onto their tracks, comes as EU lawmakers debate legislation aimed at injecting more competition into the rail sector.
The bill would allow rail firms from one country to offer domestic freight services in another. The European Parliament is trying to amend the bill so it also allows any EU rail operator to offer passenger services anywhere in the bloc.