Rail sector calls for successor to Europe’s Rail Joint Undertaking and increased funding under FP10 and the European Competitiveness Fund

Major rail industry associations urged the Commission, Parliament and Member States to establish a successor to Europe’s Rail Joint Undertaking in the forthcoming Horizon Europe framework programme and to allocate significantly increased resources to rail research, innovation and deployment. The call was issued jointly by CER, EIM, UIP, UITP Europe and UNIFE, which argued that Europe’s rail sector remains central to economic performance, climate delivery and strategic resilience but faces fragmentation, complexity and cost pressures that require a coordinated European approach.

The organisations said the rail sector contributes €247 billion to the EU economy and supports 3.1 million jobs, with infrastructure investment needs estimated at €866 billion by 2040 and €1.6 trillion by 2050 to complete the TEN T network. Urban rail modes carry more than 30 billion passengers a year, showing a significantly higher patronage than air travel. Despite this footprint, the sector continues to confront structural challenges, including high system complexity, divergent national standards and the need to attract more passengers and freight to meet climate targets.

They said Europe’s Rail Joint Undertaking has played a key role in overcoming fragmentation and delivering interoperable and affordable innovation across Member States. Given long asset lifecycles, complex financing and growing demand for military mobility and high-speed rail, a clear successor framework is needed to provide continuity, support technological maturity and enable market uptake across borders. Research and innovation were described as essential to maintain global competitiveness, particularly as competitors such as China advance rapidly.

The sector welcomed the Commission’s proposals for FP10 and the European Competitiveness Fund, noting the planned €1.8 trillion envelope, including €243 billion for the ECF, €155 billion for FP10 and €51 billion for CEF Transport. It called for these funds to deliver tangible benefits across the Union and urged the Commission to establish a successor to Europe’s Rail Joint Undertaking under FP10 with a minimum research budget of €3 billion supplemented by matching industry contributions and €15 billion for pre-deployment through the ECF, national sources and private capital.

The associations said the future partnership must remain inclusive, connecting the Commission, the European Union Agency for Railways, industry, operators, infrastructure managers, research institutes and SMEs. They called for strong synergies between FP10, the ECF, National Recovery and Resilience Plans and CEF Transport, and said the CEF Transport budget should be increased to €100 billion to match network investment needs. They stressed that the transferability of national funds to CEF should be maintained.

On FP10, the sector supported a reinforced Horizon Europe budget and asked that synergies between research and deployment be strengthened through explicit links between FP10 outputs and ECF-funded pre-deployment. It said Public Private Partnerships under Article 11 should enable the continuation of Europe’s Rail Joint Undertaking as an Article 187 partnership, with flexibility to provide in-kind contributions to facilitate SME participation. Predictable budgetary commitments were deemed essential, with a stable 50:50 cost-sharing between the EU and industry. They said a degree of flexibility is needed over time to adjust budgets and calls.

On the ECF, the organisations welcomed the consolidation of EU financial instruments and the focus on leveraging private capital. They said rail-specific investment needs make grants the most suitable mechanism and called for clear guidance to ensure coherence with shared management programmes. They supported the EU preference principle in Article 10 and the introduction of high-risk supplier concepts in Article 9, noting the need for consistent definitions across EU funding instruments and alignment with the forthcoming revision of procurement rules.

The signatories said they stand ready to work with the Commission, Member States and industry partners to shape FP10 and the ECF in a way that supports the sector’s transformation and Europe’s mobility objectives. They said a stable, long-term innovation framework is indispensable to complete the Single European Railway Area and deliver interoperable, reliable and affordable solutions across the Union.

UNIFE urges Transport Ministers to shield critical rail infrastructure from foreign control

UNIFE called on EU Transport Ministers to use their Council meeting on 4 December to reinforce safeguards for Europe’s rail infrastructure, warning that unfair foreign competition and insufficient procurement controls risk undermining strategic autonomy. The discussion, led by Austrian Minister for Innovation, Mobility and Infrastructure Peter Hanke, focuses on fair and resilient conditions for the railway sector.

The association said Europe cannot allow security-relevant segments of its rail networks, including military mobility corridors, core infrastructure and signalling systems, to fall under the influence of actors from third countries with which the EU has no public procurement agreements. It argued that a strengthened European toolbox is needed to protect critical infrastructure and said procurement rules should exclude non EU bidders where security concerns arise. UNIFE called for European preference in procurement to reduce dependency on external suppliers and reinforce the industrial base.

The organisation said long-term operational reliability must guide procurement decisions. Rolling stock has a lifetime of up to forty years, and UNIFE argued that the purchase price alone cannot determine contract awards. It urged Member States to apply life cycle costing systematically and embed a strong European preference principle in all security and resilience-related projects. It said the approach would strengthen Europe’s resilience and protect the integrity of its networks in a challenging geopolitical environment.

UNIFE described the European rail supply industry as a top-performing sector that competes internationally while delivering secure products and short delivery times. Director General Enno Wiebe warned that Europe faces a serious scenario in which it risks losing control over its own networks and said the threshold for irreversible damage is close. He urged Member States to support a robust reform of EU public procurement rules and called for coordinated action across the rail sector and policymaking community to uphold strategic autonomy.

ITF urges governments to embed backcasting in long-term transport planning frameworks

A new report from the International Transport Forum recommended that national authorities move beyond rigid forecasting models and adopt backcasting as a core element of long term transport planning. The ITF said uncertainty linked to technology adoption, behavioural change and system disruptions is undermining the effectiveness of conventional modelling approaches that produce path dependent strategies vulnerable to rapid shifts in conditions.

The report introduced a unified framework and standard terminology to help policymakers analyse and communicate uncertainty in modelling practices. It described backcasting as a vision led planning method that begins with a preferred long term outcome and identifies the policy pathways needed to achieve it. First developed in the 1970s, the approach has become increasingly relevant for sustainability and complex system planning, with variants ranging from normative to exploratory and participatory models. Hybrid approaches that combine forecasting and backcasting are also gaining ground.

The ITF said backcasting’s strengths lie in its ability to detach planning from short term constraints, develop pathways that diverge from current trends and promote systemic thinking aligned with societal goals. It can also support advocacy by encouraging ambitious policies and broadening political discourse. The participatory nature of backcasting was highlighted as important for public acceptance, while the method’s flexibility makes it suited to managing deep uncertainty.

However, the report identified persistent barriers to practical adoption. Political cycles and institutional incentives favour short-term approaches, limiting integration of backcasting within formal policymaking. Translating broad visions into actionable measures remains challenging, and quantitative modelling techniques for backcasting are underdeveloped, particularly where behavioural change and systemic transitions are involved. Backcasting exercises also face their own uncertainties linked to public acceptance, external shocks and evolving technologies.

The ITF recommended establishing a governance framework to systematise backcasting as a complement to existing transport models. It said dedicated institutions should embed backcasting in an iterative planning process to identify gaps between current trajectories and long term targets. Stronger cross-sectoral coordination between transport, energy, urban planning and land use was encouraged to align planning processes and support regional and cross-border scalability.

The report advised codifying long-term vision-oriented mandates in legislation to ensure continuity across political cycles and reduce transition costs. It also called for improved strategic communication to explain the scale of systemic change required, prioritising directionality over precision. Early and inclusive engagement was presented as essential for legitimacy and feasibility.

The ITF encouraged the development of hybrid backcasting models that integrate quantitative tools, adaptive planning and dynamic optimisation. It said such approaches can enhance scenario robustness and support course corrections over time. Authorities were urged to identify and classify uncertainty sources systematically and to communicate them clearly to stakeholders to build trust.

The report concluded that multi-scenario, participatory backcasting offers the greatest resilience for navigating complex futures. It said co-creation workshops, narrative tools and expert-informed models can broaden input, strengthen legitimacy and improve the long-term utility of planning exercises.

Consumer data shows Tesla losing brand momentum as consumer interest in Chinese EVs rises sharply

New consumer research from Escalent indicated that Tesla’s brand position is weakening in Europe as Chinese manufacturers gain trust and consideration among new car buyers. The studies suggested that Tesla’s differentiation on design, quality and emotional appeal has eroded, while Chinese entrants are closing performance gaps at lower price points.

Escalent’s 2025 EVForward Europe Tesla Brand Sentiment study found that sentiment towards Tesla is now more negative than positive among new car buyers. Thirty-eight per cent agreed that the brand’s novelty has worn off, and forty-four per cent disagreed that the prevalence of Tesla vehicles on the road made them more likely to purchase one. Although Tesla continues to lead on charging infrastructure, it trails competitors on styling, perceived quality and emotional attachment. One in three buyers now regard Tesla as a mainstream rather than a premium brand.

The accompanying Chinese Automotive Brand Impact Study showed a rapid rise in consumer openness towards Chinese vehicles. Consideration for Chinese brands increased from thirty-one per cent in 2024 to forty-seven per cent in 2025 across France, Germany, Italy, Spain and the United Kingdom. Trustworthiness also improved, rising from twenty-two to twenty-eight per cent. BYD ranked eighth overall among brands judged to be moving in a positive direction, while Tesla placed fiftieth.

Escalent said brands such as BYD, Zeekr and Leapmotor are increasingly competitive on innovation, software and design and often match or surpass European offerings at materially lower prices. The research found that nearly sixty per cent of premium vehicle owners consider German brands to offer superior interior and exterior styling and build quality compared with Tesla. Among mainstream buyers, Tesla performs better on technology and charging speed but still trails on styling and build quality.

Consumer perceptions of vehicle origin are shifting. When buyers learn that established European brands such as Volvo, MG or Smart are under Chinese ownership, interest declines slightly. However, interest increases when newly introduced Chinese brands are presented with transparent country-of-origin information, suggesting that confidence in Chinese engineering and design is strengthening as product familiarity grows. Forty-two per cent of respondents said Chinese ownership does not matter, provided product quality is high.

Escalent’s managing director for Automotive and Mobility Europe, Mark Carpenter, said Tesla risks becoming viewed as uninspiring after years of leadership. He warned that traditional European automakers must be more ambitious in design and technology to justify premium pricing and retain market share in an environment shaped by electrification, new business models and evolving consumer expectations.

Future Aero Festival pitches show startups converging around forthcoming EU aviation rules

Startups presenting at the Future Aero Festival illustrated how early-stage companies are orienting their commercial models around forthcoming EU obligations on contrails, sustainable aviation fuel and airport energy systems. The pitches reflected a market already adjusting to more prescriptive regulatory expectations and tightening emissions accounting.

Flybird’s AI-based operating tools are aligned with the shift towards performance scrutiny as regional operators prepare for more granular reporting. Automated flight planning, demand modelling and maintenance scheduling were presented as cost management instruments in anticipation of rising compliance demands and the operational implications of new aircraft types.

Fly Green 24 targeted the regulatory gap in general aviation, where most small aircraft cannot use certified sustainable fuels and limited infrastructure constrains uptake. Its certificate system and blockchain registry were positioned as mechanisms to support verifiable environmental claims ahead of wider sustainable aviation fuel reporting requirements and potential extension of mandates to adjacent segments.

Nexus Labs focused directly on the contrail monitoring and reporting rule entering into force in 2025. Its forecasting and verification software was framed as a compliance tool for dispatchers and operators, with the company arguing that avoided climate impact will become quantifiable within regulatory reporting.

Infrastructure oriented firms mirrored EU trends in airport electrification and energy performance. Albatros proposed on-site generation and storage solutions for smaller airfields to manage the expected high capacity charging demand. NRG2Fly presented airside charging systems designed for ground service equipment and emerging electric aircraft fleets in line with requirements linked to AFIR implementation.

Skyguard and Green Aero situated their wildfire response UAVs within the wider climate resilience agenda. Although not tied to specific legislative instruments, both pitches aligned with a policy environment in which emergency response capability is becoming an expected element of public sector planning.

Future Energy Global and OxCCU addressed the mandate structure under RefuelEU Aviation. Their book and claim systems separate fuel molecules from verified emission savings, allowing airlines and corporates to acquire certified Scope 3 reductions. Both argued that this supports traceability and long-term contracting for sustainable fuel attributes under the mandate.

Taken together, the pitches indicated that early commercial activity is developing around anticipated compliance needs rather than purely technical novelty. Each firm framed its product as a tool to manage regulatory obligations or operational costs within an evolving EU framework.

ASD calls for an EU industrial strategy to safeguard Europe’s civil aeronautics leadership

ASD urged the Commission to adopt a comprehensive industrial strategy for civil aeronautics, warning that the sector faces an accumulation of structural pressures that threaten Europe’s long-held global leadership. The association described civil aviation as a strategic European asset that underpins sovereignty, competitiveness and innovation, and highlighted its dual civil defence character as a source of resilience.

ASD said the sector directly employs more than 406000 people and supports nearly four million jobs across Europe, with revenues of almost €130 billion in 2024 and exports of €108.6 billion. It argued that global competition is intensifying as other major powers increase support for their domestic aerospace industries, while European manufacturers and suppliers are simultaneously accelerating commercial and defence production ramp-ups.

The association said the sector must deliver the fourth revolution of aviation centred on sustainability, while confronting supply chain constraints, high energy costs, raw material vulnerabilities and growing risks to critical infrastructure. It warned that Europe must take a more proactive stance to preserve its industrial position as worldwide aviation growth creates long-term opportunities for manufacturing and employment.

ASD called for an ambitious, cross-cutting EU strategy aligned with defence and space policy frameworks. It said sustained innovation will be essential to maintain leadership and meet Destination 2050 objectives, including through increased funding for the Clean Aviation and SESAR joint undertakings and a stronger pathway from research to deployment via the EU Competitiveness Fund. Reinforcing EASA’s certification capacity was identified as a prerequisite for the safe introduction of new technologies.

On decarbonisation, ASD cited the Draghi report’s estimate of an additional €61 billion a year in required investment and said unprecedented public and private finance will be necessary. It emphasised the need for coordinated EU action on sustainable aviation fuel, hydrogen and electrification, including derisking production projects, prioritising aviation in biomass allocation, implementing book and claim and developing dedicated hydrogen infrastructure at airports.

The association said Europe’s high-tech industrial base requires targeted support to scale production, integrate advanced materials and digital technologies, and secure access to critical raw materials and components. It highlighted persistent supply chain fragilities and geopolitical exposure, calling for strengthened European capacity and improved circularity.

Digitalisation was described as a core enabler across the value chain, with a growing need for sovereign EU solutions in areas such as cloud and artificial intelligence. ASD also warned that Europe cannot fall behind in the global race to modernise air traffic management, noting that SESAR technologies must be deployed more rapidly to unlock capacity and emissions savings. It called for additional EU funding for SESAR deployment and closer alignment between industry, the EU and Member States.

ASD said regulatory simplification at EU and national levels is required to support competitiveness. It also highlighted a mounting skills gap across engineering, technical and digital roles driven by retirements and competition from other high-tech sectors.

The association proposed nine pillars for an EU civil aeronautics industrial strategy, including formal recognition of the sector’s strategic importance, doubled EU funding for civil aviation research, strengthened industrial capacity, support for ATM modernisation, accelerated decarbonisation, regulatory simplification, reinforced international cooperation, a comprehensive skills strategy and a Team Europe approach across EU and ECAC institutions.