UNIFE is calling for fair competition between the European rail supply industry and third countries, particularly China, warning that the use, or planned use, of Chinese-manufactured vehicles by some European operators “demonstrates the urgent need for political action and corrective measures.”
“The European rail supply industry emphasises the importance of maintaining competitiveness through fair practices, supportive regulation, and strategic procurement policies, especially in response to distortive foreign subsidies from state-owned non-European competitors. We advocate for a streamlined legal framework, transparent tender evaluation with life-cycle costs at its core, and a European preference that prioritises security and European value creation.
Additionally, we support enhanced monitoring of foreign subsidies under the FSR to combat market distortions and promote fair competition. Our industry is committed to reducing costs through harmonisation, interoperability, and economies of scale, aiming to deliver high-quality, sustainable products that benefit both European and international markets while safeguarding European security and jobs,” UNIFE Director General, Enno Wiebe, said.
European businesses adhere to strict safety, social, and environmental regulations. They create sustainable technology, train apprentices, carry out research, and pay fair wages. This should be the case for all economic operators, especially in a sector such as rail which provides public services to citizens.
Public procurement and the regulation of foreign subsidies in the EU, also known as the Foreign Subsidies Regulation (FSR), are key areas of UNIFE’s focus.
The European rail supply industry welcomes the support from the European Commission, in particular the Directorate-General GROW, while at the same time calling for closer cooperation in view of the changing challenges in the market, in particular the increasing presence of foreign state-owned companies such as China’s CRRC’s, its recent contracts in Portugal and Austria and potential future orders. The 2023 OECD report confirms UNIFE’s concerns about fair competition and market distortions.
“We advocate for systematic monitoring of problematic actors and emphasise the industry’s willingness to contribute to combating distortions caused by foreign subsidies. We support the upcoming revision of the Foreign Subsidies Regulation (FSR) and call on the European Commission to simplify procedures, close loopholes such as private procurement and leasing, and lower the public procurement notification threshold to better capture urban transport projects and thus promote a fair and competitive European rail market.
The rail supply industry emphasises the need for a more efficient, predictable legal framework with a single directive that integrates existing procurement law and clarifies deadlines, particularly for the cancellation of tenders. UNIFE advocates for ambitious and transparent evaluation standards for tenders that prioritise non-price criteria unless based on life-cycle costs and support a European preference in strategic sectors such as rail with a focus on European value creation.
To guarantee security in Europe today and in the future, “we must carefully examine bids from third countries and exclude suppliers which do not have secured access to the European market and may pose a threat to our European security (such as in the security-critical area of signalling, including ERTMS). Recent incidents in public transport have already shown that European value creation and our security have unfortunately not been guiding principles until now. Particularly in a context of rail military mobility, we cannot accept suppliers from countries, that are not reliable and that do not share our European values, to deliver critical technologies,” UNIFE highlights.
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