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The European public transport scene was revolutionised by the British deregulation of 1986 but the more cautious bus reform by route tendering introduced in London in 1984 appeared to be a more convincing example for many countries. Copenhagen, e.g., introduced a similar regime and route-by-route competitive tendering has now become the norm in almost the whole of both Denmark and Sweden and can reckon on a growing number of adepts in other countries. Network tendering, as practiced in French urban areas and in the British railway sector, is the main alternative. This regime has the advantage of enabling operators to enjoy some of the service design freedoms enjoyed by deregulated operators. In practice, however, operators have much less leeway to use their inventiveness to change services in France than in Britain. Both route and network tendering are in (slow) evolution though. Various quality control instruments are being added and the more daring authorities transfer some planning powers to operators as traditional tendering proved to be more successful in cost-cutting than in increasing passenger numbers. A major impetus for a further spread of reform in EU-countries is the commitment of the European Commission to revise regulation 1191/69 pertaining to the payment of compensa-tions for Public Service Obligations to transport operators. As yet, many countries struggle with the legal and practical implications of the pending changes. This paper will provide an overview of some important recent evolutions in a number of countries of the European Union, present the EU-proposal, possible amendments and discuss some main resulting challenges.
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