With Italo, German long-distance rail services could face stiff competition in the high-speed sector – and that is good news for passengers. The Federal Network Agency’s draft resolution lays the right foundations for this: greater planning certainty for a €3.6 billion investment in new trains.

The key to this is the so-called ‘competitor clause’. Put simply: on particularly popular routes, Deutsche Bahn will no longer be allowed to keep almost all train paths for itself, but must reserve at least a quarter of them for competitors such as Italo. This prevents the established operator from using its market power alone to squeeze new competitors out of attractive routes. Experience from Italy shows that where rail operators actually compete, prices fall and quality rises.

It is not yet entirely clear how the exact allocation within this quota will be determined. This decision is still to rest solely with Deutsche Bahn itself – and this is precisely what carries the risk that it will be interpreted to the detriment of new operators. If several competitors enter the market at the same time, the allocation of train paths must remain fair and predictable; otherwise, competition will remain a paper tiger.

The other measures set out in the draft resolution are also important. One thing is clear: anyone wishing to operate within a station must also be able to offer ticket counters and lounges. Without non-discriminatory access to sales and service areas, any competition on the railways will remain half-hearted.

- Tomaso Duso, Chair of the Monopolies Commission