Denmark to lead EU rail funding talks focusing on climate, security, and digital transformation

Denmark is set to play a key role in shaping the future of European rail as it leads crucial EU budget negotiations during its Presidency of the Council of the European Union. Over the next six months, the Danish Government will guide discussions following the release of the draft EU Multiannual Financial Framework by the European Commission in July. This presents an opportunity to secure long-term funding for rail infrastructure through programmes such as the successors to Connecting Europe Facility, Horizon Europe, and the Competitiveness Fund.

These funds are vital to modernise Europe’s rail network and implement modern signalling systems, such as the European Rail Traffic Management System (ERTMS), amid rising demand for rail. Denmark is currently deploying ERTMS across its national network, aiming for full conversion to ETCS Level 2 by 2033. UNIFE has called on the Danish Government to ensure sufficient funding is secured to accelerate this technology across the EU.

“Public budgets are about choice. By choosing investment in rail in these upcoming negotiations, the EU institutions can take a big step forward in cutting transport emissions, boosting commerce and protecting Europe,” said UNIFE Director General Enno Wiebe.

Confirmation of the EU’s 2040 emissions target, also expected in July, will be another key milestone. An ambitious target will help maintain investor confidence and guide long-term sustainability planning in the rail sector. UNIFE supports a 90 percent domestic reduction target in greenhouse gas emissions by 2040, alongside strong commitments for transport.

ERTMS plays a dual role, serving both passenger and freight sectors and supporting military mobility. Its deployment is also essential for achieving the objectives of the TEN-T Regulation and the High-Speed Rail Plan. Denmark’s leadership in digital transformation could ensure continued EU investment in smart and secure transport systems.

The Presidency also offers Denmark the chance to drive competitiveness through reforms, including updates to public procurement directives, with a focus on promoting European industry. UNIFE has stressed the importance of renewing Europe’s Joint Rail Undertaking as part of the upcoming budget to support innovation and maintain global competitiveness.

“We sincerely thank the Polish Presidency for their hard work and dedication, and we will remain in touch as there is strong potential for future collaboration, even though the baton has passed,” said Enno Wiebe.