European rail industry calls for stable investment and simpler rules

23.01.2026

The European rail industry warns that the European Union’s goals for sustainable mobility and decarbonization are at risk without stable investment and a more coherent regulatory framework, according to the 2025 Annual Report of UNIFE, the organization representing manufacturers and suppliers in the European rail sector.

In a context marked by the green transition, geopolitical tensions, and budgetary pressures, the railway industry stresses that the role of rail transport in achieving the EU’s climate goals is recognized at the declarative level but is not sufficiently supported by public policies and predictable funding.

Insufficient investment for European ambitions

UNIFE points out that although rail transport is one of the most efficient modes of transport in terms of CO₂ emissions, the level of investment in infrastructure and rolling stock is not keeping pace with the objectives set at European level.

The industry is calling for the EU’s future multiannual financial frameworks to include clear and dedicated funding for rail projects, including the high-speed network and the modernization of existing infrastructure.

The lack of financial predictability affects both operators and manufacturers, who need long-term visibility to invest in industrial capacity, research, and development.

Bureaucracy and regulatory fragmentation

Another key point highlighted in the report is the increasing regulatory burden. The European rail industry is facing the overlap of several European legislative acts, including in areas such as digitalisation, cybersecurity and data, which leads to additional costs and delays in implementation.

UNIFE warns that, without a coordinated approach, the new regulations risk affecting the competitiveness of the European industry in relation to global players, at a time when the rail market is increasingly exposed to international competition.

Competitiveness and public procurement

The report also highlights the need for public procurement procedures that take into account not only price, but also quality, sustainability, and long-term value.

According to the industry, focusing exclusively on the lowest price criterion can undermine innovation and disadvantage European manufacturers, especially in the context of competition with suppliers supported by public subsidies from outside the EU.

Digitalization and green transition

At the same time, UNIFE highlights the increasingly important role of digital solutions in increasing the efficiency and reliability of the rail system, from predictive maintenance to traffic management. However, the industry warns that digitalization must be accompanied by common standards and substantial investment to avoid new forms of fragmentation.

Overall, the report sends a clear message: without a firm commitment from European and national authorities, the potential of rail transport to become the backbone of sustainable mobility in Europe risks remaining underutilised.

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