Warning! Europe’s Rail Supply Chain at Risk of Losing Global Competitiveness

On January 28, at the European Rail Forum held in the European Parliament in Brussels, the European Rail Supply Industry Association (UNIFE) issued an urgent warning: if the European Union does not continue to fund joint rail research programs, Europe’s rail supply chain faces a serious risk of losing its global competitiveness.

UNIFE emphasized that although current EU policies strongly emphasize industrial competitiveness and strategic autonomy, a funding gap after the conclusion of the existing “Europe’s Rail Joint Undertaking” program would severely undermine Europe’s position in the global rail industry. Compared to some non-EU countries that provide sustained state support to boost their domestic rail manufacturing sectors, Europe must rely on EU-level public-private research partnerships to maintain its technological leadership in rail.

To address this challenge, UNIFE proposed a clear funding framework: approximately €3 billion from the next EU Research and Innovation Framework Programme (FP10, 2028–2034), coupled with up to €15 billion from the European Competitiveness Fund, dedicated to the large-scale pre-deployment of mature rail technologies. The total funding would amount to €18 billion. This initiative aims to accelerate the transition of innovative rail technologies from the research phase to widespread application across Europe’s rail network.

Notably, previous EU-funded rail research projects have delivered key outcomes, including core technologies such as the Future Railway Mobile Communication System (FRMCS) and Digital Automatic Coupling (DAC). FRMCS will drive the adoption of next-generation wireless communication systems to replace the current GSM-R technology, while DAC is designed to enhance automation and transport efficiency in rail freight. These technologies form a crucial foundation for Europe’s competitive edge in the global rail market.

The forum gathered representatives from various EU institutions, including Members of the European Parliament, officials from the EU Commissioner for Sustainable Transport and Tourism’s office, and the Executive Director of Europe’s Rail Joint Undertaking. UNIFE stressed that Europe’s rail supply chain supports approximately 650,000 jobs across key sectors such as rolling stock manufacturing, signaling systems, and rail equipment supply. Only through continued investment in research, development, and technology deployment can the industry maintain its vitality and ensure Europe’s long-term competitive position in the global rail market.