Moving people and goods quickly, efficiently and cheaply is a central tenet of the EU’s goal for a dynamic economy and cohesive society. The transport sector generates 10% of EU wealth in terms of gross domestic product (GDP) and provides more than ten million jobs.
The constant growth in mobility puts severe strains on transport systems. The result is congestion, particularly for road and air traffic which reduces economic efficiency, and adds to fuel consumption and to pollution.

Europe's inland waterways are an underused resource.
The need for common action
Although many aspects of transport policy come under national governments, it makes sense for the European single market to have a single transport infrastructure. This is why the EU has opened national transport markets across the Union to competition, particularly in the road and air sectors and, to a lesser extent, for rail.
As a result, trucks can operate in countries other than their own, and no longer return empty on international journeys. In 2003, a first liberalisation package opened about 70-80% of long-distance rail freight traffic to competition.
Liberalised air travel has brought more competition and lower fares as well as more connections between member states. After years of negotiations, the EU endorsed an ‘open skies’ agreement with the United States in 2007 whereby any EU airline can fly from any EU airport to any city in the US. This deal should extend the benefits of EU liberalisation to transatlantic travel as well.
The EU also promotes major transport infrastructure projects, the so-called Trans-European Networks (TENs). Among priority projects are
- the removal of bottlenecks on the main east-west inland waterway linking the Rhine, Main and Danube;
- a programme to regulate traffic on busy shipping lanes off the EU coasts;
- several north-south and east-west rail upgrades.

London was the first capital to charge motorists entering its central district.
A balancing act
Liberalisation alone cannot solve several deep-seated problems. These include the dominance of road over other forms of transport, pollution, and the fragmentation of transport systems, including poor links to outlying regions and between national networks.
In the EU, 44% of goods go by road, against 39% for short-sea shipping routes, 10% for rail and 3% for inland waterways. Road dominates even more for passenger transport (largely car journeys) accounting for 81% against rail’s 6% and 8% for air. Shifting goods and passengers from roads to less polluting forms of transport is at the heart of any sustainable transport policy. Another priority is to integrate different modes of transport by combining road-rail, sea-rail or rail-air elements.
Congestion charging, where users pay for access to scarce infrastructure, is also being introduced. One example is the system, pioneered by London in 2003, which charges motorists for driving into central districts of town and cities.
In a democratic market economy, a switch from road to rail (however desirable) cannot be imposed by national governments or the EU. It has to come through incentives, like targeted investments in other transport modes so that they can handle the overflow, and pricing schemes which reflect the real cost of road use and which encourage a “natural” migration to alternative forms of transport. The purpose is to shift passengers and goods from road to rail, and to replace some short-haul passenger flights by rail journeys.
Rail is the first target. A freight train in the EU travels at an average speed of 18 kilometres per hour. Rail must improve speeds and service levels if it is to attract freight traffic from roads.
Paying for pollution
The transport sector, principally road vehicles, is responsible for 28% of EU emissions of CO2, the main greenhouse gas. Better fuel efficiency, the use of alternative fuels and lower limits for carbon emissions from cars are all measures being introduced.
With its long coastline and risk of oil spills, the EU is tightening rules on maritime safety, including tougher ship inspections, sanctions for pollution caused through gross negligence, and the accelerated phasing out of single-hulled tankers.
Action plan
The Commission issued a ten-year action plan for the transport sector in 2001. A mid-term review in 2006 said the plan should now concentrate on making railways more competitive, introducing a ports policy, developing transport systems making use of the latest technology, charging for infrastructure use, producing more biofuels and finding ways to make towns and cities less congested.