WRITTEN QUESTION E-0681/98

by Florus Wijsenbeek (ELDR) to the Commission

(10 March 1998)

Subject: Cabotage in Italy

Is the Commission aware that the capacity rules, whereby foreign carriers can become established in Italy but cannot obtain a licence immediately, will continue in force on a provisional basis even after cabotage is permitted on 1 July 1998?

Is the Commission aware that - in addition to the capacity rules - there are still compulsory tariffs for national transport, and hence for cabotage, too, in Italy?

Does the Commission feel that such systems are in accordance with the principle of the free movement of goods in the European Union?

Does the Commission intend to exert pressure on the Italian authorities to liberalize this obsolete policy in the spirit of Community thinking?

If so, how?

If not, why not?

Answer given by Mr Kinnock on behalf of the Commission

(25 May 1998)

The Commission is aware that Italy still maintains capacity rules for carriers established in Italy who want to carry out national transport in Italy. A foreign carrier, after becoming established in Italy, may therefore face difficulties in obtaining a licence in a similar manner to a "new" Italian carrier. Community rules of non-discrimination could only be invoked if foreign carriers had more difficulties than "new" Italian carriers. A Member State seeking to maintain capacity rules in national transport will find that they become largely ineffective - and even discriminatory against its own national carriers - after 1 July 1998 when, provided that they have a Community licence for international transport, non-resident carriers can carry out cabotage free of quantitive restrictions in the Member State concerned.

Council Regulation (EEC) 4059/89 abolished tariffs for international transport between Member States as from 1 January 1990 but tariffs for national transport can still be set by the national authority. The Italian tariff rules for national transport are also applicable to cabotage in Italy since Article 6.1(a) of Council Regulation (EEC) 3118/93 states that the rules of the "host" Member State apply for "rates and conditions governing the transport contract".

The Commission considers that the abolition of quantitive restrictions on cabotage as from 1 July 1998 will be a further step in the opening up of national markets of individual Member States thus promoting the free movement of goods in the Community.