Comment by arielcostas
20 days ago
France, for example, has been trying to delay allowing Renfe (Spanish operator) to operate through the country as much as possible, while their public operator SNCF (branded as Ouigo) has been able to operate here since 2021.
This EU free-rider behavior is unfortunately typical of French public sector policy.
European energy markets were famously liberalised in 1996, allowing French state-owned EDF to acquire the previously state-owned monopolist Electrabel in Belgium. All the while France negotiated an exemption for not privatising EDF because of its nuclear facilities. EU regulations should prevent this type of free-ridership: state-owned companies shouldn't be able to compete abroad if they don't face competition at home.
Interestingly SNCF is expected to subsidise less profitable local services with funds from the profitable high speed routes.
Open competition kind of spoils this model. It's not really sustainable.
It's not. Regulation (EC) No 1370/2007[^1] states in the annex, related to compensation in cases where a public operator operates subsidised public services and commercial, for-profit activities, that:
>In order to increase transparency and avoid cross-subsidies, where a public service operator not only operates compensated services subject to public transport service obligations, but also engages in other activities, the accounts of the said public services must be separated so as to meet at least the following conditions: [...]
Another topic is: should France be allowed to keep the TGV monopoly in their country because they need it to finance the rest of their network, while they are allowed to operate abroad (like in Spain), taking away business from Renfe through the free market competition they try to impede on their country anyway?
[^1]: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32...