Global rail rivals to gain advantage if EU cuts funding for rail research

The European Rail Supply Industry risks losing its world-leading position to global competitors if the European Union reduces investment in rail research and innovation, industry leaders have warned.

Speaking at a Rail Forum Europe event at the European Parliament, UNIFE Director General Enno Wiebe stressed that continued public-private cooperation is essential to maintaining Europe’s competitive edge over non-EU suppliers, particularly as countries such as China continue to heavily support their domestic rail industries.

Wiebe highlighted concerns that the European Commission has yet to commit to a successor programme to Europe’s Rail Joint Undertaking. Without sustained funding, he warned, Europe could hand a strategic advantage to global rivals at a time when innovation, competitiveness and strategic autonomy are central EU priorities.

An ideal future programme would include €3bn in funding from Horizon Europe and FP10, covering the 2028 to 2034 research framework period, alongside €15bn dedicated to the pre-deployment of key rail technologies through the European Competitiveness Fund. According to UNIFE, this level of investment is needed to ensure research outcomes are translated into operational technologies across European rail networks.

Over the past decade, EU-backed research programmes have delivered major technological advances, including the Future Railway Mobile Communication System and Digital Automatic Coupling. These technologies are seen as critical to improving rail capacity, boosting service quality and supporting decarbonisation objectives.

The Future Railway Mobile Communication System underpins Europe’s planned transition from 2G GSM-R signalling to next-generation radio-based communications. Meanwhile, Digital Automatic Coupling is expected to strengthen the competitiveness of rail freight by enabling faster, safer and more efficient operations compared with road and air freight.

The event brought together senior representatives from European institutions, including Member of the European Parliament Andreas Schieder, Deputy Head of Cabinet for the EU Commissioner for Sustainable Transport and Tourism Pierpaolo Settembri, and Executive Director of Europe’s Rail Joint Undertaking Giorgio Travaini.

UNIFE noted that the European Rail Supply Industry supports around 650,000 jobs across the continent. Continued investment in research and deployment, it argued, is vital to safeguarding employment, strengthening industrial resilience and ensuring Europe remains a global leader in rail innovation.