State aid: boosting rail transport, inland navigation and multimodal transport.

On 16th March 2026, the European Commission adopted the State aid Transport Block Exemption Regulation (TBER), accompanied by the new Land and Multimodal Transport Guidelines (LMTG). Both the TBER and the LMTG Guidelines entered into force on 30 March 2026.

Background

On 7th January 2019, the Commission carried out an evaluation of the State aid rules (the so-called "Fitness Ckeck") with the aim of gathering sufficient information to assess the extension or revision of existing rules and guidelines, including the 2008 Rail Transport Guidelines.

Subsequently, in 2021, the Commission launched the formal revision’s process of the 2008 Rail Transport guidelines, together with the proposal of a roadmap for the adoption of a new State aid block exemption regulation, specific to rail transport, inland waterway transport and multimodal transport activities.

In June 2024, the Commission submitted the draft TBER and LMTG Guidelines to public consultation. The resulting final versions were published and entered into force on 30 March 2026. The TBER will remain in force until December 31, 2034.

State aid Transport Block Exemption Regulation (TBER)

Its scope covers aid for sustainable rail, inland waterway and multimodal transport. TBER defines "inland waterway" as transport carried out by ships, and "sustainable multimodal" transport as transport that uses two modes of transport, at least one of which is by rail or through inland waterways.

In that regard, the TBER establishes and regulates eight categories of State aid exempt from notification to the European Commission, whose common basis is to adress transport coordination needs. These categories of aid are further divided into:

(i)          those aimed at investment projects, specifically, the construction, upgrade and renewal of unimodal or multimodal railway service or inland waterways facilities; the construction, upgrade and renewal of private sidings; the acquisition of vehicles; the acquisition of ILUs and cranes on board vessels; interoperability; and the technical adaptation and modernization of vehicles and equipment.

(ii)         those aimed at operation (operating aid), more specifically, aid aimed at reducing external costs and launching new commercial connections.

The TBER expressly excludes from its scope, among other cases, State aid covered by Regulation (EU) No 651/2014 (the General Block Exemption Regulation on State aid) and aid granted for the discharge of certain obligations inherent in the public service of passenger or freight transport, which must continue to be governed by Regulation (EC) No 1370/2007.

On the other hand, the exemption from the notification requirement must meet the following general conditions:

(i)          That the aid does not exceed the notification thresholds (maximum amounts) established for each category of aid (i.e. 4 million euros per project in the case of individual investment aid for private sidings).

(ii)         That it is possible to accurately calculate its gross grant equivalent without the need for a risk assessment (“transparent aid”).

(iii)       That the aid has an incentive effect, that is, it induces the beneficiary to change its behaviour or to undertake an additional economic activity that it would not carry out, or would do to a lesser or different extent, absent the aid.

These general conditions, applicable to any of the aid regulated in the TBER, are complemented by specific conditions for each category of aid eligible for exemption.

Guidelines on State aid for Land and Multimodal Transport (LMTG)

The new LMTG Guidelines replace the 2008 Guidelines and consolidate the European Commission's decision-making practice in recent years on State aid aimed at transport coordination.

In particular, they set out the criteria for determining when aid that is not exempt from the notification obligation will be considered compatible with the internal market by the European Commission. To that end, the following criteria will be applied:

(i)        Contribution to the needs for transport coordination.

(ii)       Necessity of the aid.

(iii)      Appropriateness of the aid.

(iv)      Incentive effect.

(v)       Absence of undue negative effects on competition and trade between Member States.

(vi)      Proportionality.

The Guidelines also set up the conditions for the compatibility with the internal market of State aid for the repayment of certain obligations inherent in the concept of public service in the rail freight transport sector.

Assessment

With the entry into force of the TBER, the regulatory framework for State aid for sustainable rail, inland waterway and multimodal transport is simplified and made more flexible.

Member States will be able to grant aid to undertakings active in these sectors without the need to notify in advance and await the Commission’s approval, provided that the exemption conditions laid down in the regulation are met.

To this effect, the TBER introduces new categories of exempt State aid, such as investment aid for the construction, upgrade and renewal of unimodal or multimodal railway service or inland waterways facilities; operating aid to launch new commercial connections; and investment aid for the acquisition of vehicles in the form of public guarantees. Likewise, the type of exempt aid varies between subsidies and interest subsidies, loans, tax advantages, capital and quasi-capital investments, and guarantees.

This is complemented by the approval of the new LTMG Guidelines, whose main value lies in increasing legal certainty for both States and potential beneficiaries of aid, by anticipating the European Commission's assessment approach to those aid measures that must be notified.