European Transport Law: Principles, Evolution, and Liberalization

European Transport Law: Introduction and Context

European Transport Law
14/02/2024
Introduction
Transport in Italy:
Italian Civil Law->legal framework applicable to transport-> transportation contract.
But there is also another code applicable to transport, to maritime transports and navigation->
Navigation Code.
European Level: Specific treaty> TFEU.
Art.4 includes the area of transport. Shared competence in intervening in the field of transports.

2. Shared competence between the Union and the Member States applies in the following principal
areas:

1. internal market;
2. social policy, for the aspects defined in this Treaty;
3. economic, social and territorial cohesion;
4. agriculture and fisheries, excluding the conservation of marine biological resources;
5. environment;
6. consumer protection;
7. transport;
8. trans-European networks;
9. energy;
10. area of freedom, security and justice;
11. common safety concerns in public health matters, for the aspects defined in this Treaty.

Topics we will consider:
1. Basic principles of the European transport law and their evolution. We will see how the
discipline has changed overtime. Analyzing a specific treaty (Treaty of Rome) in order to see
how this treaty initially regulated the matter of transports. During the study of this part we
need to refer to the European jurisprudence, of the ECJ. The French Seamen judgment
(1973) and the Nouvelles Frontiers judgment.
Current rules relating to the competition in the market.
2. Public discipline relatable to all forms of transports (public transport law at European level).
3. Private topic of the European transport law-> passengers rights.
Chicago Convention 1944, Convention on International Civil Aviation. Exercise of air transport
worldwide.
1919 Paris Convention, it led to the Chicago Convention.

Liberalization and Market Integration in Aviation

Process of liberalization
International aviation
Over the last 30 years, the European Union has created the world's largest and most successful
example of regional market integration and liberalisation in air transport. The single EU aviation
market has been developed through dramatic changes in the economic and regulatory landscape of
air transport in Europe to the benefit of consumers and business.
1The creation of the single EU aviation market has also had implications for the EU's external aviation
relations, leading to the development of the EU's external aviation policy. Closer international
relations will not only provide access to new markets, but also allow the EU to ensure high standards
of safety and security in international air transport as well as to work with others more effectively
to address the impact of aviation on the environment and to safeguard fair competition in an
increasingly globalised and liberalised aviation market.

Economic and Social Importance of Transport in the EU

Transport is a cornerstone of European integration and is vital for fulfilling the free movement of
individuals, services and goods. Transport is also a major contributor to the economy, representing
more than 9% of EU gross value added (the contribution to the economy). Transport services alone
accounted for around €664 billion in gross value added in 2016 and they employ around 11 million
people.

Challenges and Objectives for Sustainable Transport

The implementation of sustainable and innovative means of transport
plays an important role in the EU's energy and climate objectives. As our societies become ever
more mobile, EU policy supports transport systems to meet the major challenges:

• congestion: which affects both road and air traffic sustainability: transport still depends on
  oil for most of its energy needs, which is environmentally and economically untenable air
  quality: by 2050, the EU must cut transport emissions by 60% compared with 1990 levels,
  and continue to reduce vehicle pollution infrastructure: the quality of transport
  infrastructure is uneven across the EU competition: the EU's transport sector faces growing
  competition from fast- developing transport markets in other regions

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE
EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS
Sustainable and Smart Mobility Strategy - putting European transport on track for the future
(COM/2020/789 final)

• Mobility and transport matters to us all. From daily commuting to work, visiting family and
  friends, tourism, to the proper functioning of global supply chains for the goods in our shops
  and for our industrial production, mobility is an enabler of our economic and social life
• Free movement of people and goods across its internal borders is a fundamental freedom
  of the European Union (EU) and its single market.
  Travelling in the EU has led to greater cohesion and a strengthened European identity.
• 2. Whilst mobility brings many benefits for its users, it is not without costs for our society.
  These include greenhouse gas emissions, air, noise and water pollution, but also accidents
  and road crashes, congestion, and biodiversity loss - all of which affect our health and
  wellbeing. ... The transport sector's greenhouse gas emissions have increased over time and
  represent now as much as a quarter of the EU's total.
• 3. By far, the most serious challenge facing the transport sector is to significantly reduce its
  emissions and become more sustainable.
• Greening mobility must be the new licence for the transport sector to grow. Mobility in
  Europe should be based on an efficient and interconnected multimodal transport system,
  for both passengers and freight, enhanced by an affordable high- speed rail network, by
  abundant recharging and refuelling infrastructure for zero- emission vehicles and supply of
  renewable and low-carbon fuels, by cleaner and more active mobility in greener cities that
  contribute to the good health and wellbeing of their citizens.
• This evolution should leave nobody behind: it is crucial that mobility is available and
  affordable for all, that rural and remote regions are better connected, accessible for persons
  2with reduced mobility and persons with disabilities, and that the sector offers good social
  conditions, reskilling opportunities, and provides attractive jobs.

Key Principles of European Transport Law from the Rome Treaty

15/02/2024
Key points and based principles of the European Transport Law:
They have been defined through the Rome Treaty of 1957. It led to the foundation of European
Economic Community, which originally included 6 countries. The aim was to guarantee a stable
peace after the devastation caused by WWII. The main area of application of the Treaty is the
promotion of economic and social assistance. In relation to this aim we find 4 fundamental
(economic) freedoms:

Free Movement of Goods

1. Free movement of goods->
art.9: The Community shall be based upon a customs union which shall cover all trade in
goods and which shall involve the prohibition between Member States of customs duties
on imports and exports and of all charges having equivalent effect, and the adoption of a
common customs tariff in their relations with third countries.
Important provision in relation to the transport sector considering the essential role of the
different means of transport in the movements of goods between states. And also the
negative role that customs duties can have not just regarding the final price of goods.

Free Movement of Persons

2. Free movement of persons>
art.48: Freedom of movement for workers shall be secured within the Community by the end
of the transitional period at the latest.
There is a constant movement of persons across Europe by using means of transports.
Workers can move only through transports. Recently this rule has been expanded to include
not only the category of workers but also other types of people, like students, and in general
citizens. That's why we talk about free movement of persons.

Free Movement of Services

3. Free movement of services (we talked about transports as a service)->
art.59: Within the framework of the provisions set out below, restrictions on freedom to
provide services within the Community shall be progressively abolished during the
transitional period in respect of nationals of Member States who are established in a State
of the Community other than that of the person for whom the services are intended.
Also freedom of establishment of nationals-> art.52: Within the framework of the provisions
set out below, restrictions on the freedom of establishment of nationals of a Member State
in the territory of another Member State shall be abolished. Sectors considered strategic.

Free Movement of Capitals

4. Free movement of capitals->
art.67: During the transitional period and to the extent necessary to ensure the proper
functioning of the common market, Member States shall progressively abolish between
themselves all restrictions on the movement of capital belonging to persons resident in
Member States and any discrimination based on the nationality or on the place of residence
of the parties or on the place where such capital is invested".
We have to note that despite these fundamental principles, their full application to the transport
sector was not easy. And in particular was not easy due to a provision contained in the same
treaty->
art.61 "freedom to provide services in the field of transport shall be governed by the provisions of
the title relating to transport."
3The context of transport is something unique, is very specific. This rule underlines the important
role of transports. We have to add that this is an important rule but sometimes these special
provisions appear to deny or reduce the importance of the article 59.

Provisions of the Rome Treaty on Transport

Regarding the title related to transport we have to say that the title was title 4 which contained 11
articles. We have to note that most of those articles are still valid today. Some of these provisions
are:

• Art.74> the objective of this treaty shall be pursued by MS within the framework of a
  common transport policy.
• Art.75 > For the purpose of implementing Article 74, and taking into account the
  distinctive features of transport, the Council shall, acting unanimously until the end of the
  second stage and by a qualified majority thereafter, lay down, on a proposal from the
  Commission and after consulting the Economic and Social Committee and the Assembly
  [European Parliament]:
  A. Common rules applicable to international transport to or from the territory of a Member
  State or passing across the territory of one or more Member States;
  B. the conditions under which non-resident carriers may operate transport services within
  a Member State;
  C. any other appropriate provisions.
  The council shall lay down common rules applicable to international transports (from a MS
  to another MS), which should lay down the conditions under which non resident carriers
  may
  In setting these common rules we have to consider that the principles of the regulatory
  system applicable to transport could apply differently, depending in particular on the
  context in which they can be applied. In particular we have to consider that on the basis that
  the political and social conditions are available, the enactment of the 4 fundamental
  freedom could be linked.
• Art.76> Until the provisions referred to in Article 75(1) have been laid down, no Member
  State may, without the unanimous approval of the Council, make the various provisions
  governing the subject when this Treaty enters into force less favourable in their direct or
  indirect effect on carriers of other Member States as compared with carriers who are
  nationals of that State.
  Principle of non-discrimination between national carriers and carriers of the member states.
  At the same time we have another provision;
• Art.77> Aids shall be compatible with this Treaty if they meet the needs of co-ordination of
  transport or if they represent reimbursement for the discharge of certain obligations inherent
  in the concept of a public service.
  State aid is compatible if it meets the need of coordination of transports or if it represents
  reimboursments form the discharge of certain public service obligation.
• Art.80 -> 1. The imposition by a Member State, in respect of transport operations carried out
  within the Community, of rates and conditions involving any element of support or protection
  in the interest of one or more particular undertakings or industries shall be prohibited as from
  the beginning of the second stage, unless authorised by the Commission.
  2. The Commission shall, acting on its own initiative or on application by a Member State,
  examine the rates and conditions referred to in paragraph 1, taking account in particular of
  the requirements of an appropriate regional economic policy, the needs of underdeveloped
  areas and the problems of areas seriously affected by political circumstances on the one
  4