State Aid and Public Service Obligations in Railway Transport

1 As with other types of land transport, railway transport is regulated by both general provisions of Articles 107–8 and Articles 93 and 96 of the Treaty on the Functioning of the European Union (‘TFEU’). Article 93 TFEU is a derogation allowing for considering compatible aid for the coordination of transport, or aid amounting to a reimbursement for the discharge of public service obligations (‘PSO’). Article 96 prohibits the imposition by the Member States of favourable transport rates and conditions regulated by state authorities for the benefit of particular...