Moving from EU patchwork to EU network
When it comes to moving people or goods across the Union the Commission’s Directorate-General (DG) for Mobility and Transport enters the picture. According to its Director-General, Henrik Hololei, the DG’s slogan Connecting Europe says it all, identifying connectivity as a key element the EU project is all about. Henrik Hololei has headed the DG, since 2015, and is more than willing to share his views on how and where the EU can help in achieving greater EU connectivity for its citizens.
Interview with Henrik Hololei, Director-General for Mobility and Transport, European Commission
By Derek Meijers and Gaston Moonen
EU successes and transport — connectivity as a public good
It might not come as a surprise that Henrik Hololei considers transport as essential to the EU and its policy making. But the European Commission’s Director- General for Mobility and Transport beefs up that claim with some clear arguments. ‘Transport is something we tend to take for granted, but everything we do is usually related to transport, whether it is going to the office in the morning, moving goods around or having fresh products in the supermarkets. Transport is all about connecting people, connecting businesses.’ He considers connectivity to be one of the greatest public goods provided by the EU: ‘I can tell you this from my personal experience, I lived 21 years without the right to travel, when we were deprived of this connectivity. That is maybe why I value it so much.’
… I lived 21 years without the right to travel, when we were deprived of this connectivity. That is maybe why I value it so much.
For Henrik Hololei many of the EU successes relate to this connectivity. ‘When you ask people to mention one of the things the EU has brought to them, they will very often name the European Single Aviation market that brought cheap flights — and that is connectivity and the EU at its best.’ For the Director-General the single European aviation area is an explicit example of an EU achievement in transport. ‘And there is so much to do in the other transport modes to get down the barriers and make sure that this connectivity is a reality in the whole territory of the EU.’ Then laughing: ‘One reason why I like the slogan of DG MOVE, which is Connecting Europe, so much.’
Henrik Hololei considers the EU single market as a sine qua non condition for this connectivity. ‘For the future of transport the key words are seamless transport and multimodality.’ However, when discussing some critical findings from ECA reports and from the Commission itself in its progress reports, he underlines that progress, or the lack of it on these issues, needs to be put in an appropriate timeframe. ‘When we look at the Commission’s White Paper of 2011, we are looking at a document that set goals for 2030 and 2050, and, in 2015, when assessing it we concluded that it was still fit for purpose and now we needed to concentrate on the implementation of its actions.’
Changing world, new demands, new concepts
In his view 10 years will be the right time to re-evaluate its goals, since the world around us and mobility and transport as a concept have changed. ‘This change is firstly driven by the whole issue of sustainability of transport, decarbonisation, air quality, alternative fuels, alternative power trains and so on. And secondly, by digitalisation.’ He believes that digitalisation will also transform transport significantly. In the next ten years, we will see a bigger change in transport than in the last 50 years. And it will be a change for the better!’
This change is firstly driven by the whole issue of sustainability of transport, decarbonisation, air quality, alternative fuels, alternative power trains and so on.
Henrik Hololei quickly comes up with some examples of the effects of digitalisation in transport: ‘Drones. Once the market is open for the commercial use of drones, it will be a market with a value of tens of billions of euros, and this will happen in the not too distant future.’ He also mentions automation as a driver in transport. ‘Autonomous driving is going to change a lot; the logistics are going to be far more efficient. Imagine when cars are talking to each other, ships are talking to the ports, cars are talking to infrastructure, the whole infrastructure is talking to its parts! You can optimise efficiently and at the same time diminish the emissions and make mobility more sustainable.’ Also for air transport, he sees modernisation of air traffic management with digital solutions. ‘We can increase efficiency in the skies even further.’
Moving to a real network
When discussing how to go from a transport patchwork to a transport network, Henrik Hololei raises what he calls ‘the third element’ next to sustainability and digitalisation in the changes he foresees: the physical infrastructure. ‘In our physical infrastructure of trans-European networks we have to concentrate on removing the bottlenecks and bridging the missing links, in particular cross-border connections. In the future even more than today. That is how we can actually make a patchwork into a network!’ For him these missing links are the reason why there is still a patchwork. ‘Because Member States only think locally, within their own borders, but we need to think European, to incentivise policies, together with financing, focusing on what is European by nature.’
… Member States only think locally, within their own borders, but we need to think European, to incentivise policies, together with financing…
In this context, he brings up two other elements for these trans-European networks. ‘First, they must be smart, meaning embracing the digital opportunities and enhancing them. And second, they must be sustainable, meaning creating the necessary infrastructure for alternative fuels.’ For him the EU is instrumental to achieving this around Europe, to making it real.
Interests, finances and impact
Discussing the possible differences between national and regional interests on the one hand and EU interests on the other, it is clear Henrik Hololei knows what he is talking about, drawing on his experience as a former Minister of Economic Affairs in Estonia. ‘We indeed have had some very unfortunate examples in the past because the programme for Trans-European Networks and the Regional Policy funding instruments had different perspectives and objectives leading sometimes to separate interests. However, this has changed, thanks also to the deployment of the Connecting Europe Facility. This is a big change!’ He first explains that the Connecting Europe Facility only funds those projects that are on the trans-European networks, which means they are only eligible for financing when adding European value to the network. ‘Secondly, we helped to achieve coordination between the Connecting Europe Facility and the European Structural Investment Funds.’ And here the Director-General stresses his appreciation for the work done by the ECA. ‘In the different audits done on these networks by the ECA, you constantly pointed to this coordination, the need for it and also the way to improve it, which helped us devise a more sustainable policy.’
… there are EU failures among those airports which have hardly ever seen an airplane. Fortunately, that is not possible anymore.
These regional interests also appear in, for example, air transport. Henrik Hololei points out that on the one hand the single aviation market has contributed enormously to connectivity in Europe. ‘But on the other hand there are EU failures among those airports which have hardly ever seen an airplane. Fortunately, that is not possible anymore. Over the last years we managed to change this to make sure that the money is spent on those projects that are on the trans-European networks and goes to those Member States which are strongly committed to complete such projects.’ He adds that the Connecting Europe Facility’ relies on competitive calls for proposal, which allow the best quality projects to be selected. In addition, the Connecting Europe Facility applies the concept of use it or lose it: ‘If you do not use the money for the purpose given you will have to pay it back and the money goes to the projects which really add EU value. This creates additional pressure and Member States have become much more conscious of this!’
When speaking about the Connecting Europe Facility Henrik Hololei puts things into perspective. ‘The facility is a very good tool but we also see that investment needs are very big. So increasing the funding available in the form of grants under the Connecting Europe Facility can only help to a certain extent to meet these high investment needs. What is going to change is that grants will become a component of more blended financing models based on innovative financial instruments aimed at leveraging other financial sources. For that you can turn for instance to the European Investment Bank (EIB).’ He adds that for those projects that have a revenue stream one can also involve the private sector and also use other financing models, and that commercially viable projects should not be financed entirely with public money. ‘EU money and national funds should be put where you have the missing links and bottlenecks and where there is no or less commercial interest. That is how you build a network from the patchwork.’
Creating impact through EU legislation: examples of safety and passenger rights
Financing is one of the instruments available to the Commission, legislation is another. Henrik Hololei refers to an aspect that he considers it is essential to arrange at EU level, through legislation: safety. ‘I always say that in transport and mobility safety comes first. Whenever passengers travel, they trust they are travelling in a safe system. We even have to do more to continue to guarantee the highest safety level possible. We can be proud that the European safety framework, in whatever transport mode, is the best in the world. We have to keep it like that, whether by legislative means, implementation, enforcement or financial support.’
We can be proud that the European safety framework, in whatever transport mode, is the best in the world.
However, safety as an objective throughout the Union is sometimes also used as an impediment to changing the patchwork into a real network. Henrik Hololei: ‘The safety argument is sometimes used to erect barriers that cannot be justified. The rail sector is maybe the worst example of that, where a large number of different rules are designed to avoid competition in the market, which is blocking the creation of the single European rail area.’ However, he underlines that the Commission is working to address this: ‘Through the implementation of the ‘4th Railway Package’ we are making progress by cancelling a huge number of national rules and inserting more European competence. This allows a smoother process for the certifications that we need and they will boost the opening of the market.’
The safety argument is sometimes used to erect barriers that cannot be justified. The rail sector is maybe the worst example of that…
Henrik Hololei relates the safety issue to another, yet related topic the ECA published about in November 2018: passenger rights. ‘The ECA report on this topic is a very useful tool to develop this policy. I am quoting the reporting ECA Member, Mr Pufan, who said the EU’s commitment to passenger rights is indisputable. I think in this area we have established a framework which is unique in the world and serves in many countries as an example of best practice.’ However, he believes there is still a lot of work to do. ‘In particular on the enforcement side, which is uneven and — definitely — the strength of the national enforcement authorities varies.’
Putting it in a historical perspective he underlines that 15 years ago passenger rights related really to only one mode of transport — aviation, while they are now valid for the four modes of public transport: air, rail, water/maritime and bus. ‘Certain core rights are also common to all modes, while the specific features of each sector need of course to be taken into account. However, it is fundamental that these rights are known and used by all citizens of the EU. That is why we have been running information campaigns quite proactively, including using digital means to raise awareness of people’s rights.’
For Henrik Hololei passenger rights is a good example of how the EU has added value: ‘We would probably not be enjoying these rights across the EU if these proposals had not been made at European level.’ But he makes it clear there is still a lot to achieve: ‘For the air passenger rights the regulation is already quite old. Six years ago, we put forward a proposal to modernise it. And, unfortunately, the proposal is still in the debating phase in the Council six years later. This is not a great example of how Member States have been tackling this issue.’
Changes and challenges
In 2010, Henrik Hololei was already working on EU transport and mobility issues, then as the head of cabinet of Commissioner Sim Kallas. When discussing what in his view has been the biggest change since then he responds quickly. ‘I think the biggest positive change has been the creation of the Connecting Europe Facility. This financial instrument has made a difference! An instrument that really helps to promote pan-European seamless networks, as it supports the whole trans-European network policy.’ With a certain pride, he adds: ‘It is also an instrument where, in the evaluation of the policy with the Member States, not a single Member State claimed not to have profited from the system. Even at a time when many funding programmes have been cancelled or reduced, at least in the Commission’s proposal for a future long-term budget, the amounts for the Connecting Europe Facility have been increased.’
… I think the biggest positive change has been the creation of the ‘Connecting Europe’ Facility.
Speaking about the future, this is also what the ECA’s landscape review on transport looks at, identifying six challenges the EU still faces. When asked which of these six challenges is the key one from his perspective Henrik Hololei hesitates: ‘I think that the need to improve planning, implementation and monitoring of the EU funded projects more generally is the key challenge. The landscape report was also very useful for us and for our planning, because we also need to look at the future to be able to improve the situation in all areas.’ He underlines that he finds these reports really valuable. ‘Yes, you cannot implement all at the same time but such a review gives you a very helpful direction.’
EU transport policy compared
Sometimes new ideas come up when looking away from the beaten track, for example comparing the European transport and mobility situation with elsewhere, for example with the United States where the current government has put transport infrastructure high on the political agenda. The Director-General believes that, from a comparative perspective, Europe is doing pretty well. ‘One of the big advantages we have is that we have the Multiannual Financial Framework — the long-term EU budget — which creates predictability for a longer period, which helps with planning projects and finding financing, also because it is predictable.’ He mirrors this with budgetary discussions, for instance in the United States: ‘There they can become extremely political and the financing of big projects is then subject to these disputes. That lowers the interest of potential private sector participants because they are not sure whether this project is going to be finished or not. So there we definitely have an advantage.’
Henrik Hololei continues that for the trans-European network policy as a whole people from all around the world ask how the EU did it. ‘We work a lot with Asian countries, for example with the ten Southeast Asian countries who have borders with each other. Of course, there it is very difficult to do joint infrastructure projects. Nevertheless, they ask us how we did it and if we can share our experiences with them, which we are more than happy to do.’ He adds that, just a few weeks ago, the trans-European transport core network was extended to the Eastern Partnership countries. This follows a common definition of the trans-European network with Switzerland, Norway, Iceland and the Western Balkans. ‘So they already go beyond European borders and are very much welcomed by our immediate neighbours.’
Push for sustainable modes
One of the transport modes where the Director-General thinks that the Commission needs to keep pushing is rail — to create a single European rail area. ‘We need to push the rail sector and mostly the Member States to get rid of the technical and regulatory barriers. 17% of freight is carried by rail and, despite our efforts and financial support, this has not changed over the last years. That is simply not good enough!’ He underlines that rail — together with inland waterways — are the most environmentally sustainable means of transport. ‘We really need to get more freight from the roads to the rails, which would be good for the environment but also help in enhancing road safety and easing congestion.’ He makes it clear that the barriers that still exist in rail have a negative impact on the reliability of the sector. ‘But things are improving and increasing rail freight is and continues to be a very important priority for us.’
We really need to get more freight from the roads to the rails, which would be good for the environment but also help in enhancing road safety and easing congestion.’
As a positive example of where the potential for future development is being explored, Henrik Hololei refers to the inland waterways. ‘I have great sympathy for inland waterways, for instance in the Netherlands, Germany and Belgium, where this positive entrepreneurial spirit is present in the sector, whereas it is not necessarily always present in other modes of transport in Europe.
Though the sector faces many difficulties they are trying to realise their potential, and the Commission has always been a good partner to them. We provide a clear European policy framework and EU support.’ Sustainability is an essential focal point in many policy areas and this is no different in transport and mobility. Henrik Hololei makes it clear that this also affects the financial flows: ‘First of all, for the future of the Connecting Europe Facility, we are talking about spending up to 60% on those projects that are environmentally sustainable. Secondly, the trans-European networks have to be smart and sustainable. And thirdly, digitalisation will increase efficiency and hopefully reduce congestion and in this way also contribute to enhancing sustainability in the mobility and transport sector.’
… we are able to develop a more environmentally sustainable mobility […] Europe is the leader in the world in pushing this agenda.
Henrik Hololei realises that often transport and environment may be depicted as opposite interests but he believes it is important to see them together. ‘We have to realise that we are able to develop a more environmentally sustainable mobility and transport sector, decreasing the footprint on the environment. This will not happen overnight, but we have to be very committed to that. Europe is the leader in the world in pushing this agenda.’ He points out that the Commission has put out proposals to advance this agenda, for example regarding the new emission standards for vehicles. ‘For example the ‘clean vehicles directive.’ This helps manufacturers to embrace innovation and supply low-emission vehicles to the market.’ Another proposal he refers to concerns alternative fuel infrastructures to encourage Member States to invest in alternative fuels and make them more available. ‘We have already taken and will take further initiatives, but obviously, we can do more. And we will do more! I am quite positive that for the next Commission this will remain one of its cornerstone priorities.’
EU added value as key criteria
When it comes to how the ECA, through its audits, can help the Commission to achieve all these EU objectives in the transport and mobility field, including the sustainability conditions, Henrik Hololei believes that the Commission has already benefitted greatly from the many ECA reports published in the area during the last years. As far as the future is concerned he has some concrete thoughts. ‘Firstly, our good mutually supportive relationship needs to continue. Secondly, at the Commission, we need to be able to extract a maximum out of the audits that will be done in the future.’ As a third point, he underlines the need to promote a pan-European approach. ‘We have the single European market, we must have a single European transport area, we must have the single European rail area, we must have the single European sky. And we must have common European principles, for example on passenger rights.’
He identifies a key criterion in all these activities: ‘All this is promoting European added value, where you can discover many links to the transport and mobility sector.’ He concludes that he is keen to work with the ECA: ‘I am looking forward to use ECA findings, recommendations and suggestions to move the EU transport and mobility sector to a new level.’
This article was first published on the January-February 2019 issue of the ECA Journal. The contents of the interviews and the articles are the sole responsibility of the interviewees and authors and do not necessarily reflect the opinion of the European Court of Auditors.
