EU transport policy (A level Econ)

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Transport Policies in the EU context

The main aims of the policy

The main aim of the transport policy is to deliver �an efficient and integrated transport system that offers a high level of quality and safety for Europe�s citizens�.

The key objectives can be summarised as follows:

Improving road safety � around 40000 people a year are killed on the road in the EU
Preventing transport congestion � By promoting different modes of transport
Take into account the environmental effects of different modes of transport � To encourage the use of the least polluting modes of transport (fewer cars) and to confront transport externalities.
Move towards some harmonisation of taxation of fuel
Investment in major infrastructural work Building Trans European networks in rail and air. Investment in infrastructure is now an important part of EU transport policy. It is seen as an essential part now as it directly affects the competitiveness of EU businesses in global markets.

There are a number of different Transport policy sectors

The sectors within the transport policies are the following:

Air transport
Road safety
Road transport
Maritime transport
Inland waterway
Intermodal transport
Logistics
Clean urban transport
Transport infrastructure charging policy

European Commission transport infrastructure charging policy

Taxes and charges, in every mode of transport, should be varied to reflect the cost of different pollution levels, travelling times and damage costs as well as infrastructure costs.

Changes to the policy

By having different levels of taxes for different types of fuel (leaded, unleaded, diesel, LPG, hydrogen, kerosene) we encourage the use of cleaner engines and fuels and reward with lower charging rates those who do use them.

By varying rail access, air traffic service charges, airport landing, or vehicle toll charges according to the time of travel, we provide an incentive to travel outside peak hours and so reward those who do not travel at peak hour and contribute to congestion
Varying charges according to vehicle/plane/ship size, weight or other appropriate dimension provides the incentive to use less damaging transport

External trade by mode of transport

As it is possible to see from the table the main form of transporting goods in via the sea by shipping, while road and air share approximately the same proportion. The section the EU is unhappy about is the amount of trade done by rail and so the EU is going to direct a lot of attention onto improving the rail networks across the EU zone. Nearly 60% of intra EU trade is carried by road whereas 40% of extra EU trade is carried by sea and 25% by air.

Transport is important to the economy

Modern economies cannot be as internationally competitive without an efficient transport system in place.

Transport systems in the EU carry over 150million people to work each day
Allow over 100million business related trips
90 million people a day go shopping
Handle over 15million postal items

Overcoming global distances

Transport systems increase the size of a domestic market by allowing goods to be sold globally They improve the chances for international trade and the benefits and economic integration which are crucial in a single currency market. Allows a greater geographical mobility of labour as workers can commute to work from longer distance as the infrastructure is efficient. Minimizes transport times for businesses and thus increasing their competitiveness in both domestic and international markets as there would be lower costs for the businesses.

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