Brexit Britain Eyes Eurofima for Railway Funding
Could Joining a European Rail Finance Group Save the UK Millions?
The UK government is exploring membership in Eurofima, a European rail financing group, as a way to secure better funding for new trains and support british manufacturing.
This move comes as the UK seeks to develop a long-term strategy for it’s rolling stock, aiming to boost domestic production and improve passenger services.
“The government is committed to developing a long-term industrial strategy for rolling stock, which supports British manufacturing and innovation and ultimately improves the offer for passengers,” a government spokesperson said. “As part of this, my officials have been exploring the best financing structures to support this investment, in partnership with private finance, and this includes considering Eurofima finance.”
Ironically, Brexit may have strengthened the case for joining Eurofima.Previously, UK operators benefited from preferential financing from the European Investment Bank. However, post-Brexit, access to this funding has been blocked, making rolling stock procurement more expensive.
“With the imminent transition to Great British Railways,now is a very opportune moment for the U.K. to join Eurofima, whose members largely consist of national rail operators,” said Michael Solomon Williams from the Campaign for Better Transport.The Campaign for Better Transport argues that joining Eurofima could offer a “better value approach” to delivering new trains.They highlight the potential for Eurofima membership to plug the current funding gap,save the government money,and ultimately protect jobs in the UK rail sector.”for years, the U.K. has been suffering from inconsistent rolling stock production, compounded by a loss of EU funding, which if not addressed soon could lead to major job losses in the sector,” Williams added.
Eurofima itself has expressed a warm welcome to the UK. CEO Christoph Pasternak told Rail Business UK earlier this year: “Everyone we have spoken to in the U.K. thinks this is a good idea and can see a clear benefit in terms of easing the burden on the public purse. But we just need someone in government to pick up the pen.”
Could Joining Eurofima Save UK Millions on New Trains?
Newsdirectory3.com – The UK government is considering joining Eurofima, a European rail financing group, possibly unlocking significant savings on new train purchases and supporting domestic manufacturing.
This move comes as the UK seeks to develop a long-term strategy for its rolling stock, aiming to boost British production and enhance passenger services.
“The government is committed to developing a long-term industrial strategy for rolling stock, which supports British manufacturing and innovation and ultimately improves the offer for passengers,” a government spokesperson said. “As part of this, my officials have been exploring the best financing structures to support this investment, in partnership with private finance, and this includes considering Eurofima finance.”
Brexit has ironically strengthened the case for UK membership in Eurofima. Pre-Brexit, UK operators benefited from preferential financing from the European Investment Bank, but that access has been blocked sence leaving the EU.
Michael Solomon Williams from the Campaign for Better Transport believes now is the perfect time for UK to join Eurofima. “with the imminent transition to Great British Railways, now is a very opportune moment for the U.K.to join Eurofima,whose members largely consist of national rail operators,” he said.
The Campaign for Better Transport argues that joining Eurofima could offer a “better value approach” when it comes to procuring new trains. They highlight the potential for Eurofima membership to plug the current funding gap, save the government money, and ultimately protect jobs in the UK rail sector.
“For years,the U.K. has been suffering from inconsistent rolling stock production, compounded by a loss of EU funding, which if not addressed soon could lead to major job losses in the sector,” Williams added.
Eurofima CEO Christoph Pasternak has expressed enthusiasm for UK membership. “Everyone we have spoken to in the U.K. thinks this is a good idea and can see a clear benefit in terms of easing the burden on the public purse. But we just need someone in government to pick up the pen,” he told Rail Business UK.