Baltic States – CIS, EU – Baltic States, Financial Services, Legislation, Railways, Transport

Speaking at a conference on Rail Baltica in the European Parliament in Brussels yesterday, Zile said that, politically, the time was right for making the crucial decisions on further progress of Rail Baltica, European Conservatives and Reformists group's spokesman Rolands Petersons told LETA.

EU government leaders' recent agreement on the next EU multiannual budget, which is yet to be endorsed by the European Parliament, stipulates that funds from the Cohesion Fund may also be used for the Connecting Europe Facility projects – EUR 10 billion in total. This money may be used to cover up to 85% of a given project's costs, which for Latvia is the only viable option to have the Rail Baltica railroad built, connecting the country to the rest of the EU, said Zile.

"If the Baltic countries do not take crucial steps for implementation of Rail Baltica already now, that is, if they do not draw up a real project to be handed in to the European Commission, the current positive attitude toward Rail Baltica may change by 2015-2016," said Zile. By that time, there may be other projects pending, competing with Rail Baltica, including the East-West railroad electrification project. In that case, the question will arise if there is money for implementation of the Rail Baltica project in the given financial perspective.

"Furthermore – will there be an owner interested, and competent enough, in implementing the project. It has to be taken into account that, for instance, Latvijas dzelzcels railroad company, which is interested in the East-West railroad electrification project, has the necessary resources and a lobby of the associated business groups, as well as a functioning and profitable business. The Rail Baltica project, which currently does not even have a management team in place, will find it hard to compete with Latvijas dzelzcels. That is why I hope that Baltic transport ministers, during their meeting in Riga on Thursday, will reach agreement on establishing a joint venture for the development and implementation of the Rail Baltica project," emphasized Zile.

The conference, organized by the Finland-based "Rail Baltica Growth Corridor", Helsinki City Council and Finnish MEP Petri Sarvamaa, was attended by representatives from the European Commission, government and municipal representatives from the Baltic countries, Finland, Poland Austria and Germany, as well as several European Parliament members and experts involved in the Rail Baltica project.

Baltic transport ministers' annual meeting will be held in Riga tomorrow, April 11, where the main topic will be the Rail Baltica project.