32 Billion Euro in Transport Funding Under Threat

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23 Apr, 2012

€32 billion of transport funding is under threat, as the EU prepares its 2014-2020 budget. A wide coalition of transport groups including the European Cyclists' Federation (ECF) have written an open letter, urging governments to maintain funding for transport, explains ECF Policy Officer Ed Lancaster.

Times are tough in Europe when it comes to funding projects and politicians are increasingly willing to cut funding in "non-essential" areas. They should be reminded that funding for transport is essential.

From 2007-2013, transport received €60 billion in funding. There has been signs that some European transport funding streams will be slashed, and in some cases removed from the 2014-2020 budgetary period. The European Cyclists' Federation, along with a host of other transport groups is demanding that €32 billion is safeguarded.

You can read a copy of the open letter below

32 billion open letter european transport industry

The Importance of Transport

"Transport is the backbone of growth; it creates wealth and employment. It is the bedrock of any national, or indeed regional, economy," stated Siim Kallas in a speech earlier this year at the National University of Singapore.

In our joint open letter, it's made clear just how important it is to the economy :

"The transport industry within the EU directly employs 10 million people in the EU and counts for about 5% of GDP. The EU White paper notes that by 2050, the EU will say 80% rise in freight activity and 51% in passenger transport."

There's little doubt that failing to invest will harm Europe's growth prospects.

The EuroVelo Network is a pan European network of cycle routes across Europe. With over 70,000 kilometres of bicycle routes, it will need substantial EU funding for completion by 2020.

What About Cycling?

The potential of cycling for transport, especially in times of budgetary constraints should not be forgotten. It's cheaper, has a higher return on investment and is sustainable. When it comes to cycling Tourism, the economic benefits are huge. Cycle tourism across Europe is estimated to bring in more than €54 billion per annum. Once completed, the EuroVelo network will generate an estimated €5 billion in direct revenue.

Up until recently, politicians haven't given cycling the funding it deserves. From 2007 until 2013, only 0.7% of EU funding has been earmarked for cycling.

Thankfully there are signs that change is on the way. The European Parliament voted in December last year to include EuroVelo into the Ten-T network. If the network is accepted later this year, this would mean that cycling infrastructure is eligible for billions in funding.

For the Eurovelo Network to be completed by 2020, we're going to need €1.6 - 2 billion. But considering the massive return on investment, it's a very, very safe investment. The European institutions should remember this when laying out the next transport budget.

About the Author

Ed Lancaster is the ECF Policy Officer for Regional Policy & Cycling Tourism. For the past 7 years, Ed has worked as a Town Planner for various local authorities in South East England and he has a Master’s degree in Town Planning from the University of Westminster. In his last role he was responsible for transport policies and strategy, as well as managing numerous cycling-related projects (e.g. providing new cycle infrastructure and running promotional activities)