Austria’s Minister for Mobility and Transport, Peter Hanke, has called on the European Commission to develop a dedicated European strategy for the rail industry, arguing that the sector is facing major challenges driven by increasingly distorted global competition, rapid digital transformation, and the strategic importance of rail transport for Europe’s economy, mobility, and security.
The proposal was presented during the EU Transport Council meeting held on 8 June in Luxembourg, where transport ministers discussed the key challenges and priorities facing the sector at European level.
Austria’s initiative has received support from nine other Member States. Austria, Croatia, France, Germany, Greece, Italy, Luxembourg, Poland, Portugal and Romania have jointly urged the European Commission to draw up a European Railway Industry Strategy aimed at strengthening the sector’s competitiveness, supporting innovation, and reducing the European Union’s strategic dependencies.
The Member States backing the initiative believe the rail sector should become a priority within European industrial policy, in a context marked by rapid technological change, intensifying global competition, and unprecedented investment in rail infrastructure.
They argue that the railway industry now requires a coordinated strategic approach at EU level, similar to those already applied in other major industrial sectors. While the European Commission has recently developed an Automotive Industrial Action Plan and a Maritime Transport Industrial Strategy, the rail sector still lacks a dedicated strategic framework tailored to its specific needs and importance.
In the view of the supporting countries, this lack of coherence in industrial policy represents a gap that must be addressed. Given the essential role of rail transport in sustainable mobility, the green transition, and Europe’s economic security, they consider it necessary to develop a comprehensive strategy for the sector.
European rail industry: EUR 45 billion turnover and a strategic pillar of the economy
The European rail industry is one of the most important industrial ecosystems within the European Union. The sector generates an annual turnover of approximately EUR 45 billion and supports over 650,000 jobs, playing a crucial role in both sustainable mobility and the continent’s economic competitiveness.
At the same time, rail transport is regarded as a key enabler for achieving the European Union’s climate objectives, which aim to increase the share of rail in both passenger and freight transport in the coming decades. This will require billions of euros in investment in infrastructure, rolling stock, and digital systems. However, several Member States warn that the success of these investments also depends on the existence of a strong and competitive European rail industry.
According to the Member State-led initiative, European manufacturers are facing increasingly aggressive global competition, particularly from companies benefiting from substantial government support, preferential access to financing, and market conditions that differ significantly from those within the European Union. Under these circumstances, there is a growing risk that Europe could gradually lose industrial capacity, know-how, and technological leadership in a strategic sector.
Moreover, the digital transformation of rail transport is fundamentally reshaping the industry’s profile. Software, signalling systems, automation, and data management are becoming critical components of modern railway operations, bringing to the forefront issues related to cybersecurity, technology control, and European strategic autonomy.
Five key directions defining the future
Austria’s position is based on recent analyses by the Austrian Institute of Economic Research (WIFO), which highlight a profound shift in global competitive conditions in the rail sector. According to these assessments, the international market is increasingly shaped by state-supported companies benefiting from significant subsidies, directed financing mechanisms, and restricted access for foreign operators.
“We are facing both an industrial and a security challenge. It is no longer just about which trains run on our rail networks. The stakes are much broader: who makes the decisions on our mobility, who controls the software, and how we manage to protect our critical infrastructure in the long term,” said Austrian Minister Peter Hanke.
According to Peter Hanke, a future European railway industry strategy must meet five key requirements.
The first direction is a thorough analysis of risks and critical dependencies affecting the European rail industry, from supply chains to essential technological components.
The second concerns the assessment of existing EU instruments and how they can be used more effectively to support the rail sector and address its specific challenges.
The strategy must also ensure fair competitive conditions on the international market. Europe should make better use of trade tools and market access mechanisms to guarantee reciprocity in relations with third countries and avoid situations where European companies compete on unequal terms.
Another key objective is to strengthen the role of public procurement, ensuring that public investment in rail infrastructure and rolling stock not only develops transport networks but also reinforces Europe’s industrial base and promotes fair competition.
Finally, the strategy should promote digital sovereignty and integrate security criteria into the development and certification of railway systems. As digitalisation becomes increasingly central to the sector, control over critical technologies and protection against cyber risks are seen as essential for the future of European mobility.
“Open markets need fair rules. If Europe is investing billions in expanding its rail infrastructure, these investments must also strengthen innovation, expertise, and high-quality jobs in Europe. The question is: do we want to remain technological leaders or become mere consumers of technology? This decision will also be made on the railways,” Hanke concluded.
Through this initiative, the European railway industry strategy is seen not only as an economic tool, but as an essential pillar of the European Union’s competitiveness and strategic autonomy.
Spain calls for faster delivery of rolling stock
At the Luxembourg meeting, Spain’s Minister for Transport and Sustainable Mobility, Óscar Puente, raised the need to accelerate the production and delivery of trains. In recent months, during meetings with officials from the European Commission and the EU Council held in Brussels, Luxembourg and other European working formats, the minister has intensified calls for a common EU-wide approach aimed at speeding up train manufacturing and delivery processes, in a context where systematic delays are affecting the competitiveness of the European rail industry.
“In recent years, trains ordered from major European manufacturers have never been delivered on time. Average delivery delays range from two to three years in Europe, meaning that a new train may only enter service around eight years after procurement,” Óscar Puente said.
The minister stated that this situation is the result of a combination of structural factors: high demand for trains across Europe, complex and non-harmonised certification processes, a lack of production standardisation, and the absence of unified testing mechanisms at EU level. In his view, these bottlenecks affect the entire industrial chain and require a coordinated approach rather than isolated measures.
Against this backdrop, Spain is proposing the development of a common European strategy for the rail industry, aimed both at strengthening the sector’s competitiveness and improving production and delivery efficiency. Óscar Puente has also called for the European Commission to facilitate a structured dialogue between Member States, manufacturers, rail operators and the European Union Agency for Railways, with the aim of identifying concrete solutions to reduce delays.
Current delays are having a direct impact on transport services, increasing operating costs by keeping ageing rolling stock in service and limiting operators’ ability to modernise their fleets.
Minister Óscar Puente also noted that “compared with other global markets, such as Asia, Europe is facing significantly longer production and delivery times, which places additional pressure on the competitiveness of the European rail industry.”
From Spain’s perspective, the solution does not lie in isolated measures, but in a unified European framework that enables process optimisation, standardisation of procedures and reduced delivery times, so that the rail sector can respond more effectively to growing demand and the European Union’s sustainable mobility objectives.
UNIFE supports a European railway industry strategy
UNIFE has welcomed the initiative to develop a European strategy for the rail industry, describing it as essential for strengthening the sector’s competitiveness and placing it at the centre of the EU’s industrial and transport agenda.
The organisation has encouraged Member States to continue the process and to work closely with the European Commission on a common strategy, stressing that the rail industry is vital for Europe’s strategic autonomy, the resilience of critical infrastructure, and sovereignty in the transport sector.
UNIFE also highlighted the need for a fair competitive framework and stronger public procurement rules to prevent market distortions and unequal access.
“We are deeply grateful to the ministers and signatory EU Member States for their strong support, as they not only recognise our strategic value, but also understand that our industry is essential for delivering Europe’s industrial future and rail projects. We must now focus on the next steps and how this strategy can be implemented swiftly,” said UNIFE Director General Enno Wiebe.
He also underlined that the rail sector has a direct relevance for European sovereignty and military mobility, meaning that sensitive technologies should not depend on high-risk suppliers from outside the European Union.
“Future reforms are essential to ensure a level playing field, both in Europe and globally. Any modernisation must enable our industry to compete fairly and effectively,” Enno Wiebe added.
At the same time, UNIFE warned that future European policies must remain proportionate and effective, avoiding over-regulation that could undermine the industry’s ability to develop and deliver complex projects in a competitive and sustainable way.
Share on:
