Europe ‘held hostage’ to energy shocks without rail urgent investment
Europe remains trapped in a cycle of crisis, unless it breaks free from its reliance on aircraft and automobiles and shifts to electrified rail, as European supply chains, businesses and citizens face a second energy shock in less than five years.
Today, UNIFE Director General Enno Wiebe said the ongoing war in the Middle East proves that European policymakers must prioritise building resilience through extra rail investment via the Connecting Europe Facility (CEF) in upcoming EU Budget negotiations, and at a Member State level.
Currently, the Connecting Europe Facility which is part of the draft Multiannual Financial Framework (EU Budget for 2028 to 2034) has been allocated €51.5 billion (a portion of which will be used for rail). However, this figure needs to be increased to at least €100 billion if meaningful progress is to be made in boosting the European network.
These investments would go towards a range of worthwhile initiatives, such as:
- Delivering key European cross-border and Military Mobility rail projects
- Further planning and early development work of a future EU High-Speed Rail Network
- Deploying key technologies which will boost the existing rail network – such as ERTMS® (European Rail Traffic Management System) and DAC (Digital Automatic Coupling)
- Acknowledging rail as the backbone of European mobility
Europe’s continued reliance on aircraft and automobiles for passenger and freight mobility means the continent faces implementing emergency measures with every crisis, instead of prioritising ‘proofing’ measures such as concentrated investment in more electrified rail networks.
On top of disruptions to airlines, road and maritime freight, secondary inflation through increased fossil fuel prices is likely to ripple through supply chains, driving up the cost of goods, groceries and services for every European citizen and business.
Investing in electrified national rail, urban metros and light rail infrastructure would reduce reliance on fossil fuels, as energy could be sourced from other means, including renewables and nuclear generated power.
Rail accounts for only 0.3% of Europe's transport-related greenhouse gas emissions, making it the most environmentally friendly mode of transport. Rail freight market share according to Eurostat has fallen from 19.1% in 2012, down to 16.4% in 2023.
The ongoing crisis also provides further opportunity to dramatically scale up passenger services, which continue to grow in popularity and market share.
Quotes attributable to UNIFE Director General Enno Wiebe
“Few lessons have been learned from the energy shocks of the 1970s. As policymakers now need to respond with emergency measures, we could have reduced the economic and social damage of these incoming shocks by investing in rail over the generations.”
“With public demand for better rail infrastructure and an overreliance on air and road freight, an investment of at least €100 billion in the next EU Budget for CEF will help build future resilience and reduce the impact of future energy shocks.”
“To deliver these much-needed projects, the European Rail Supply Industry needs more than just the certainty of long-term investment; it needs measures to ensure that it can remain competitive, such as Public Procurement reform and easing regulatory burdens.”
