uu
Could Joining Eurofima Help Solve the UK’s Rail Rolling Stock Woes?
The UK government has committed to developing a long-term strategy for its rail network, aiming to support British manufacturing, encourage innovation, and ultimately deliver a better experience for passengers.
This strategy includes exploring diverse financing structures for rolling stock procurement, with public-private partnerships playing a critical role. One intriguing possibility gaining traction is the UK’s potential accession to Eurofima, the European financial leasing company for rail.
Brexit Presents Unexpected Opportunities
Ironically, Brexit seems to have strengthened the case for joining Eurofima. Previously, UK operators benefited from preferential financing through the European Investment Bank. After leaving the EU, access to these funds was blocked. This has made rolling stock procurement slightly more expensive, emphasizing the need for innovative financing solutions.
A Viable Solution?
“With the imminent transition to Great British Railways, this is a very opportune moment for the UK to join Eurofima, whose membership largely consists of national rail operators,” says Michael Solomon Williams from the Campaign for Better Transport.
“For years, the UK has consistently struggled with inconsistent rolling stock production, a problem compounded by the loss of EU funding. If this issue isn’t addressed soon, we could see significant job losses within the sector. Accession to Eurofima could help plug the current funding gap, save the government money, and offer a more cost-effective approach to delivering new trains on our network.”
Eurofima Welcomes the UK
Eurofima itself has expressed its openness to welcoming the UK.
“Everyone we have spoken to in the UK thinks this is a good idea and can clearly see the benefits it would bring in easing the burden on the public purse,” says Christoph Pasternak, Eurofima’s CEO. “However, we need someone in government to take the initiative.”
