Chapter 6: Urban public transport
The challenges and related options for regulatory intervention in urban transport have been the subject of extensive studies and discussions during the past two decades. This discussion is also reflected in a number of policy papers issued by the European Commission (EC). However, the subsidiarity principle prevents the European Commission from imposing top-down solutions which are considered unlikely to be appropriate for the diversity of local situations that can be found in Europe. The role of the EC is thus to disseminate good practice, harmonize technical standards, provide research funds and adapt legislation. In this context Regulation 1191/69 set rules for the structure and content of public service contracts that incorporated public service obligations and respective financial compensation. However, this regulation did not advance any solutions for the way contracts should be awarded, and public procurement Directives (92/50 and 93/38) allowed public transport to be exempted from competitive tendering.
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