European Commission: adoption of new State aid rules to "support sustainable land transport solutions"
New State aid rules are adopted "to make it easier and faster for Member States to support sustainable land transport solutions", announced the European Commission on 16/03/2026.
First, the scope of State aids is extended beyond rail transport alone to include inland waterways and all multimodal sustainable transport modes. Second, certain categories of State aids are now exempt from prior approval by the Commission, enabling Member States to provide support more rapidly.
The new State aids are as follows:
• Land and Multimodal Transport Guidelines (LMTG), which apply as of 30/03/2026, and remain in force until further notice. It replace the 2008 Guidelines for railway undertakings.
• Transport Block Exemption Regulation (TBER), which applies as of 30/03/2026, and remains in force until 31/12/2034. It complements the Guidelines by exempting certain categories of aid in transport sectors from the requirement of prior notification to and approval by the Commission.
The European Commission adds that the adoption of these rules follows the conclusions of the 2019 Fitness Check on the existing rules applicable to the sustainable land transport sector.
"This exercise showed that the Railway Guidelines made an important contribution to encouraging a modal shift to rail and to promoting interoperability. At the same time, the evaluation showed that adjustments were needed to reflect market and technological developments and the current EU's strategic priorities".
Furthermore, the revised rules are accompanied by an Impact Assessment Report "that sets out the scope, content and likely impacts of the new rules and summarises the information received during the consultation activities organised by the Commission".
What contains the new rules ?
State aid Land and Multimodal Transport (LMT) Guidelines
According to the texts, the LMT Guidelines set out the conditions under which State aid that has to be notified to the Commission for approval before it can be granted may be declared compatible with the internal market. The new Guidelines include the following provisions:
- They cover all land transport modes that are more sustainable than road transport. These include rail, inland waterways and sustainable multimodal transport. When it comes to multimodal transport, at least one of the used transport modes has to be rail or inland waterways, or combine land transport with short sea shipping.
- They clarify the possibilities for several operating and investment aid measures, such as aid for the construction and upgrade of railway service and inland waterways facilities, aid to launch new commercial connections on rail and inland waterways, and they clarify the possibilities for aid in the form of reimbursement for the discharge of public service obligations in the rail freight sector.
- They introduce more flexible rules for aid measures that directly contribute to the green and digital transitions. This includes aid aimed at reducing the external costs of transport, as well as aid promoting interoperability, like aid for safer and more efficient operation across national rail systems. These provisions are designed to support a shift from road to more sustainable ways of transport, while ensuring that aid remains targeted and proportionate.
- They introduce safeguards to support the entry and growth of new operators in sustainable land transport markets. They facilitate access to finance for SMEs, small- and mid-caps (SMCs) and new entrants to purchase rolling stock and inland waterway vessels, while preserving effective competition.
State Aid Transport Block Exemption Regulation (TBER)
This new exemption framework constitutes a major simplification, enabling Member States to quickly provide aid where conditions are met. As a result, Member States can now implement many measures without the need for prior approval by the Commission.
This is in line with the Commission's approach to focus on delivering more and faster, while reducing undue administrative burden. The categories of aid and rules contained in the TBER widely mirror the LMT Guidelines.
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