NETHERLANDS: The European Commission has said the Netherlands failed to correctly apply EU rules on competitive tendering when it directly awarded state-owned incumbent NS a contract to operate passenger train services on the designated core rail network in 2025-33.
On February 12 the Commission reported that the Netherlands had not provided satisfactory replies to its previous letters. It has now issued a reasoned opinion, which is a formal request to comply with EU law.
The Netherlands has two months to respond and take the necessary measures, otherwise the Commission may decide to refer the case to the Court of Justice of the European Union.
The Commission said ’regulated competition in the rail market is essential to provide passengers with more attractive and innovative services at lower cost, while keeping public service tasks’.
In July 2023 the Commission sent a formal notice suggesting that the direct award of a public service obligation contract to NS would circumvent the principle of tendering under Regulation (EC) 1370/2007. However, the government went ahead and awarded the contract on December 21 2023, just days before the expiry of a provision in the Fourth Railway Package which permitted direct awards under certain conditions.
In March 2024 the Commission sent an additional letter of formal notice saying the Netherlands had not sufficiently analysed which services could be provided by market operators under commercial open access conditions.
