Nordic bus industry associations take fight to the EU

Abandon the lawsuit against Denmark and instead ensure that the EU establishes clear rules preventing bus companies from low-wage countries from engaging in social dumping in the Nordic region. This is the message in a letter to the European Commission from the bus industry associations in Denmark, Iceland, Norway, and Sweden.

The letter is the latest move in a fight over so-called cabotage road transport rules which has split EU member states for years.

Various types of transport companies often carry goods or passengers between EU member states. However, as a general rule, they are only allowed to conduct domestic traffic in the country where they are established. In exceptional cases, they may engage in inland traffic in another country, known as cabotage, provided that this is "temporary".

A truck can for instance be allowed to carry out a few inland transport stretches on its way home after an international freight transport job. There are similar rules for passenger transport by bus – typically tourist buses but not city buses. 

In the case of such temporary inland journeys, the drivers should receive the pay and other terms and conditions of employment that are applicable in the host country.

However, the Nordic countries have experienced that cabotage rules have been abused by haulage companies from low-wage countries. Some systematically conduct inland traffic in the Nordics while paying the wages of their home countries.

Denmark, in particular, has sought to counter this abuse by adopting clear rules on what constitutes “temporary” inland transport and has repeatedly clashed with the European Commission on this issue. 

Recently, the Commission brought legal action against Denmark for failure to fulfil its treaty obligations due to restrictions put on foreign bus companies wishing to carry passengers in the country.

Now, the industry organisations Danish Passenger Transport, Icelandic Travel Industry Association, Norwegian NHO Transport, and the Swedish Confederation of Transport Enterprises have joined forces and contacted the EU’s Commissioner for Transport Adina Valean. 

There is no definition of "temporary" in the EU regulation that concerns bus transport. The organisations therefore argue that it is entirely misguided to take a member state to the EU Court of Justice for attempting to clarify the matter.

In their letter, they emphasise that Iceland recently adopted rules that, like the ones in Denmark, define what should be considered temporary cabotage – and that Norway is about to do the same. Rather than continue to pursue the legal proceedings against Denmark, the Commission should work towards creating a clear and restrictive definition in the EU regulation and in various guidelines on how "temporary" should be interpreted. 

The industry organisations argue that such a definition should ideally be in line with the rules established by the Nordic countries.