New Public Aid for Rail and Inland Waterway Transport in the EU: What Changes in 2026

Key data

Rail, inland waterway and multimodal transport companies in Spain have had a new framework facilitating access to public funding since 16 March 2026. Regulation (EU) 2026/562 automatically declares certain categories of aid in these sectors compatible with the internal market, eliminating the main bureaucratic bottleneck that existed until now: prior notification to the European Commission.

For executives and CFOs in the sector, this represents a concrete window of opportunity: Spanish public authorities can now grant aid more swiftly, and companies must position themselves to take advantage before their competitors do.

What does this regulation establish?

This regulation is a block exemption regulation: instead of each public aid measure having to be individually analysed and approved by the European Commission, the regulation declares in advance that certain categories of aid are compatible with the internal market. The result is that public authorities can grant them directly, without waiting for approval from Brussels.

The legal basis is Articles 93, 107 and 108 of the Treaty on the Functioning of the European Union (TFEU), which govern State aid and its compatibility with the internal market.

The key change compared to the previous framework is the elimination of the prior notification obligation to the European Commission for these categories. Previously, each aid measure had to be individually notified and approved, causing significant delays. Now, if the aid falls within the categories covered by the regulation, it can be granted directly.

Economic and operational impact

The main impact of this regulation is not a specific aid figure, but rather a structural change in the speed and accessibility of public funding for the sector. The operational implications are direct:

• Shorter processing times: By eliminating prior notification to the European Commission, the timelines for receiving public funding are significantly reduced.
• Greater legal certainty: Companies and public authorities know in advance which aid measures are compatible, reducing the risk of subsequent challenges.
• Access to funding for modernisation: Companies can plan investments in infrastructure and rolling stock with greater confidence of obtaining public co-financing.
• Promotion of sustainability: The regulation expressly includes the promotion of more sustainable transport modes as an eligible use, aligning with the objectives of the European Green Deal.
• Opportunity for multimodal projects: Projects combining rail, inland waterway and other modes now have a clear framework for accessing public aid.

Who is affected?

This regulation has two types of recipients with distinct roles:

• Rail transport operating companies: Both freight and passenger operators running services on the rail network.
• Inland waterway transport companies: Operators of transport services on inland waterways.
• Multimodal transport companies: Companies managing logistics chains combining rail, inland waterway or other transport modes.
• Granting public authorities: Central government, regional governments and local authorities wishing to grant aid to the sector without going through the notification procedure to the European Commission.
• Rail and inland waterway infrastructure managers: Entities responsible for the maintenance and modernisation of infrastructure that may be recipients of aid.

Practical example

A rail freight transport operating company in Spain wants to renew its locomotive fleet to reduce emissions and improve energy efficiency. Before Regulation 2026/562, if a regional government or the central government wanted to subsidise part of that investment, it had to notify the aid to the European Commission and await its approval — a process that could take months or even years.

Under the new framework, if the aid falls within the categories declared compatible by Regulation 2026/562 (in this case, rolling stock acquisition and sustainability promotion in rail transport), the public authority can grant it directly. The company can begin the investment with greater legal certainty and within shorter timeframes.

The same scheme applies to a multimodal project combining a rail terminal with inland waterway access: the promoter company can apply for public aid under this regulation without the granting authority having to wait for prior approval from Brussels.

What should companies do now?

1. Review the eligibility of projects in the pipeline: Identify which planned investments in infrastructure, rolling stock or multimodal projects could fall within the categories covered by Regulation 2026/562.
2. Contact granting public authorities: Reach out to the Ministry of Transport, regional government departments and local authorities to find out what aid calls they are planning under this new framework.
3. Prepare eligibility documentation: Gather the technical and financial documentation demonstrating that projects meet the requirements of the categories covered by the regulation.
4. Assess sustainability projects: Given that the promotion of more sustainable transport modes is one of the expressly eligible uses, review whether there are emission reduction or energy efficiency projects that could benefit.
5. Monitor calls for applications: Keep a close watch on aid calls that Spanish public authorities launch under this regulation, as the elimination of prior notification may accelerate their publication.

Official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, please consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=CELEX:32026R0562