Public service provision in the EU maritime cabotage sector : a special case for island regions?

Abstract

The dissertation analyses the regulation of public service provision in the EU maritime cabotage sector with special reference to island regions. Since various public passenger transport services that society needs as part of its general interest cannot be run commercially, the responsible national, regional or local authorities of the Member State concerned must ascertain that those services are provided to the necessary standards. This is especially so in the case of islands which face additional difficulties due to the issue of insularity. The sector-specific rules limiting the Member States’ discretion in defining services of general economic interest and in imposing public service obligations and granting public service compensation are critically reviewed against a practical background of various CJEU judgements and Commission decisions related to island regions. Such rules include those emanating from Regulation (EEC) No 3577/92 as interpreted by the Commission Communications, decisions and judgements, as well as the applicable state aid rules and public procurement rules in the sector. The compatibility assessment relating to public service compensation is also discussed. A ferry tendering route is laid down and there is an examination of the importance of an open, transparent and non-discriminatory tender and award procedure in cases where Member State decide to tender ferry services. The issues of bundling exclusivity, public service contract duration and conditions of the tender/contract are also tackled. A review of the Maltese experience in the sector is carried out, most notably of the lifeline ferry service provision between Malta and Gozo and the upcoming tender with regard to such service which will include the additional service of a passenger only fast ferry. The thesis concludes with suggestions to better address the sensitive situation of island regions in the area under discussion.