Violeta Bulc (Slovenia, 1964), head of the European Department of Mobility and Transport, sends “a powerful plea” to the governments of Mariano Rajoy and António Costa to agree once and for all on the development of the Atlantic railway axis. And the petition is stained with threat when he warns that after Brexit “more will have to be done with less money” and European funds will focus on projects of common interest. “It is not a threat, but if you put European money it has to be based on European criteria and the priority is the missing cross-border sections,” says Bulc during an interview with Cinco Días and the Portuguese weekly Expresso. Brussels is short on money and is running out of patience, a combination that could leave Spain and Portugal without access to declining structural funds and increasingly oriented towards central and eastern Europe.
Why do you consider the railway connection between Spain and Portugal a priority?
We need to complete all the planned corridors before 2030 and the section from Évora to Mérida is a very important piece that is missing in the freight corridor that goes from Portugal to Spain, France and beyond. It is a project with great added value for the whole of Europe. This cross-border link is useful not only for freight connectivity, but also for decarbonisation and passenger transport. And it opens up that connectivity not only for Spain and Portugal, but for the whole of Europe.
Should it be high speed?
The compromise is an electrified network that allows at least 180 kilometers per hour and up to 250 kilometers per hour.
Even so the stretch to Lisbon would be missing.
Yes, but the construction of the cross-border section could serve as a catalyst for the rest of the pending infrastructure.
For Spain, freight transport by rail does not seem to be a priority.
Well, that was true until a few years ago because Spain made a great effort to promote high-speed passenger trains. But that has changed, because they have understood that without railway connections to industrial areas and ports, competitiveness is lost. And Spain is now redirecting investment towards freight brokers.
Rail freight transport will have an impact on road transport in a country like Spain that has the second highest unemployment rate in the EU. What will you say to the truckers union?
What I can share is that until 2030 an additional investment in transport of 500,000 million is expected with an accumulated impact on GDP of up to 4.5 billion euros and the creation of 13 million job openings. A large number of jobs are created in each investment project. First, in the construction of the infrastructure itself. And later, because new companies are developed around the new network and investment is attracted locally.
Even so, it seems that the priority of the Government of Mariano Rajoy would be the connection of the Spanish ports, which do not have a high-speed link.
I understand the question, but I think that the Spanish Government is aware of this trend towards rail freight and the EU encourages that the European dimension be taken into account in infrastructure plans. Portugal needs to connect to the single market and we encourage that corridor to be given priority. That section [Évora-Mérida] is essential and that is why we send a powerful plea to the prime ministers to complete the cross-border links of the corridors because if they are not complete, the full potential cannot be used.
But Lisbon is not enthusiastic about the project either. Prime Minister Antonio Costa has ensured that high speed to Madrid is taboo.
We are not just talking about high speed, but connectivity. Electrification is also a priority. The riders agreed in 2014 and now it is time to fulfill the commitments. It is a great goal for these brokers to work. No one can be forced. But there are European criteria. And if European money is invested, those criteria must be met, which include cross-border connectivity, the construction of the missing links in the network.
Is it a threat? Will Spain and Portugal lose European funds if they do not develop this type of project?
No, no, it is not a threat. But it must be understood that each financial instrument has a purpose. And the CEF (EU financial instrument for network infrastructure) is used for brokers. And there are other items from the regional funds that should be used for projects that facilitate the development of the corridors. Governments must understand that well.
The construction of the corridor will largely depend on the next European budgets (2021-2027) and everything points to significant cuts as a result of the departure from the United Kingdom. Will there be money?
Over the next two weeks, we are going to discuss the new budgetary framework with great intensity and Brexit has also entered the debate, in particular, how to overcome the gap, the deficit [of about 10 billion euros a year] left by the departure from the UK. This forces to consider new ways of income but also to look for ways to do more with the same money or do more with less.
Does it look bad? The scenarios that the EC is considering speak of a reduction in structural funds of between 95,000 million and 124,000 million throughout the period.
There is moderate optimism about the new budgets, especially if we manage to see all the Member States perceive the great benefits to be derived from a powerful European budget. And for this we must promote everything that generates added value that can only be achieved at the European level. And transport plays a crucial role in this area because without connectivity or infrastructure, states cannot take full advantage of the single market. I believe that investment in infrastructure projects will continue to be one of the great budgetary objectives.
But cuts seem inevitable.
The goal should be to achieve better results, more with less. In addition to traditional subsidies, the Juncker Plan has shown that there are very effective instruments. If we use the funds as guarantees and develop new financial instruments, we can cover a potential fall in subsidies.
SOURCE: CINCO DÍAS | EL PAÍS ECONOMÍA
