European Parliament adopts resolution to improve competiveness of the rail supply industry

The European Parliament has adopted a resolution designed to improve the competiveness of the rail supply industry not only within Europe but also globally.

On 09 June 2016 the European Parliament adopted the Resolution on the competitiveness of the European rail supply industry prepared by German MEP Martina Werner. The resolution was put forward to increase the ability of those engaged in the rail sector to compete not only within Europe but also at a global level. This has also been presented in response to growing competition from Asia.

84% of needs for supplies and services are met by the European Rail supply industry

According to UNIFE World Rail Market Study 2014, the EU represents the largest absolute market worldwide for both rail products and services. Of the EU market, 84% of needs for supplies and services are met by the European Rail supply industry.

The European rail supply industry (RSI) accounts for roughly 46% of the world’s total RSI market. European RSI is known to employ approximately 400,000 employees, and the European railway sector overall is cumulatively responsible for more than 1 million direct and 1.2 million indirect jobs through EU member states.

In April this year, Members of the European Parliament Industry Committee (ITRE) adopted the resolution by a large majority. The ITRE committee members within this made know their strong desire for the support of European rail suppliers, as well as the need for this to ensure that the European industry continues to lead within the greater global rail market.

Other major aspects of the resolution include supporting SMEs that work within RSI, increasing the investment in rail projects through a variety of existing EU funding mechanisms, increasing global competitiveness of European rail through various trade negotiations, as well as improve the amount of political knowledge and support of the European rail industry.

The resolution received vast support during the European Parliament Plenary session not only because would it increase European competiveness but would heighten competition with Asian suppliers. According to the European Parliament, ‘84% of the EU market is being met by the European rail supply industry, if global competitiveness is not achieved, this percentage may decline without proportionate increase elsewhere.’