Irish Presidency prioritises transport connectivity, rail investment and energy resilience

The Irish Presidency of the Council of the European Union has identified transport connectivity, energy security and industrial competitiveness among its principal priorities for the second half of 2026, with work set to focus on the forthcoming EU budget, rail and transport infrastructure, and transport decarbonisation.

In its six-month programme, Ireland says it will seek to build “a more connected, resilient and competitive Europe” through the Transport, Telecommunications and Energy Council, supporting development of the Trans-European Transport Network, advancing transport decarbonisation and strengthening the resilience of Europe’s transport systems.

A central objective will be securing progress on negotiations for the European Union’s next Multiannual Financial Framework (2028-2034), which the Presidency describes as an overarching priority. The negotiations are expected to determine future funding levels for major transport programmes, including the Connecting Europe Facility, TEN-T implementation and other infrastructure investment instruments.

The Presidency also commits to supporting Europe’s industrial competitiveness through implementation of the One Europe, One Market Roadmap, with particular emphasis on regulatory simplification, innovation and investment. It says transport infrastructure will be treated as a key enabler of European competitiveness while ensuring the sector continues its transition towards decarbonisation.

On energy, Ireland says it will prioritise strengthening European energy security through greater deployment of renewable and clean energy, investment in electricity grids and the development of a more electrified and resilient energy system. The programme notes that geopolitical developments will continue to shape discussions on energy affordability and security.

The Presidency also commits to advancing digital connectivity, cybersecurity and investment in subsea telecommunications infrastructure, alongside work to strengthen Europe’s leadership in cloud computing and artificial intelligence.

Within the Competitiveness Council, Ireland intends to progress negotiations on the next Horizon Europe research framework and the proposed European Innovation Act, while supporting measures aimed at strengthening European industrial resilience and reducing regulatory burdens.

Environmental policy will continue to focus on delivering the Union’s climate neutrality objective by 2050. Ireland says it will pursue work on environmental simplification while maintaining the EU’s environmental and climate ambitions, alongside measures covering biodiversity, water resilience and pollution reduction.

The programme also identifies enlargement, support for Ukraine, stronger relations with the United Kingdom, and implementation of the Savings and Investments Union as broader Presidency priorities.

E-Mobility Europe says EV rollout could save EU €12 billion in oil imports annually by 2030

Meeting the European Union’s existing electric vehicle deployment targets could reduce annual oil imports by 190 million barrels by 2030, saving around €12 billion each year while strengthening the bloc’s energy security, according to a joint analysis published by E-Mobility Europe and Ember.

The report argues that road transport remains one of Europe’s largest strategic vulnerabilities, accounting for around two-thirds of EU oil demand. It contends that accelerating the deployment of battery electric vehicles represents the fastest and most scalable route to reducing dependence on imported fossil fuels, replacing oil with electricity increasingly generated from domestic renewable sources.

According to the analysis, achieving the EU’s existing regulatory trajectory would result in around 35 million battery electric passenger cars, 3 million electric vans and 200,000 battery electric heavy goods vehicles operating on European roads by 2030. Compared with a scenario in which electric vehicle uptake stagnates at current levels, this would avoid approximately 190 million barrels of oil consumption annually, equivalent to around 10% of current road transport oil demand.

The report notes that electric vehicles are already reducing Europe’s oil dependency. In 2025, battery electric vehicles displaced an estimated 67 million barrels of oil, avoiding more than €4 billion in oil imports, while more than one million electric vehicles registered during the first half of 2026 displaced a further four million barrels.

Rather than presenting electrification solely as a climate policy, the report frames electric mobility as a strategic resilience measure. It argues that recent geopolitical tensions, including disruption affecting global oil markets, have reinforced the need to reduce Europe’s exposure to imported fossil fuels and position transport electrification as a pillar of energy security.

Alongside maintaining the existing CO₂ standards for cars, vans and heavy-duty vehicles, the report sets out five priorities for an “electric security” strategy: accelerating deployment of electric vehicles, strengthening Europe’s battery and manufacturing base, reducing the cost of electricity relative to fossil fuels, integrating electric vehicles into the electricity system through smart charging and vehicle-to-grid services, and strengthening cybersecurity across the connected mobility ecosystem.

The report also argues that Europe should resist calls to slow vehicle electrification through greater reliance on hybrid technologies or alternative fuels in the road sector. While recognising a continuing role for renewable fuels in aviation and maritime transport, it concludes that direct electrification remains the most efficient and scalable route to reducing oil consumption in road transport, warning that lower EV deployment would leave Europe more exposed to future oil price volatility and geopolitical disruption.

EU unveils €200 million South Caucasus connectivity package following Armenia-Azerbaijan peace agreement

The European Commission has launched a new €200 million connectivity package for the South Caucasus, seeking to reinforce the recently initialled peace agreement between Armenia and Azerbaijan through investment in transport, energy and digital infrastructure.

During a visit to Baku, Commission President Ursula von der Leyen announced the creation of an EU-Azerbaijan Connectivity Partnership, backed by up to €200 million in Global Gateway grant funding with the potential to mobilise as much as €2 billion in public and private investment.

The initiative is intended to establish a structured framework for identifying strategic infrastructure projects, coordinating financing and strengthening regional connectivity through a new High-Level EU-Azerbaijan Connectivity Dialogue covering transport, energy and digital networks.

Transport infrastructure forms a central pillar of the package. The Commission confirmed its continued support for the proposed Nakhchivan railway project, which is intended to improve transport links across Azerbaijan and the wider South Caucasus. The European Union and the European Bank for Reconstruction and Development launched a feasibility study for the railway in January 2026. President von der Leyen also identified potential investment in the Port of Baku as part of the broader connectivity agenda.

To support project development, the European Commission and Azerbaijan will organise a Regional Connectivity Investment Conference in Baku before the end of 2026, bringing together governments from the European Union, the South Caucasus and Central Asia alongside international financial institutions and private investors to mobilise financing for strategic infrastructure projects.

Alongside the connectivity package, the Commission announced a separate €20 million “Peace Dividends” programme aimed at supporting communities in Armenia and Azerbaijan through investment in healthcare, demining, skills development, rural development and local businesses, with the objective of embedding the economic benefits of peace in border regions.

Energy cooperation also featured prominently during the visit. Von der Leyen described Azerbaijan as a reliable energy partner for the European Union following the disruption of Russian gas supplies and said cooperation would increasingly focus on renewable energy, electricity interconnections and regional energy networks. She welcomed Azerbaijan’s plans to develop offshore wind capacity in the Caspian Sea and to advance a Green Energy Corridor linking the country with the European Union, alongside proposals for a future electricity interconnection with Armenia.

The Commission also confirmed that discussions have resumed on a new comprehensive EU-Azerbaijan agreement, with the aim of strengthening political dialogue, trade and investment following the provisional conclusion of new Partnership Priorities for the 2026-2030 period.

The announcements come after Armenia and Azerbaijan initialled a peace agreement, which the Commission described as a historic opportunity to strengthen regional stability, deepen economic integration and expand connectivity between Europe, the South Caucasus and Central Asia.

Half of countries invest less than 1% of GDP in transport infrastructure, ITF data show

Half of countries are investing less than 1% of gross domestic product in inland transport infrastructure, despite growing demands to modernise networks, strengthen resilience and deliver transport decarbonisation, according to new data published by the International Transport Forum (ITF).

The latest Statistics Brief compares transport infrastructure investment across ITF member countries and highlights a widening divergence between mature economies, where investment has generally stabilised or declined, and countries continuing to expand their transport networks.

Average investment between 2022 and 2024 ranged from 0.2% of GDP in Ireland to 3.5% in Azerbaijan. Countries investing more than 2% of GDP, including Azerbaijan, China, North Macedonia and Serbia, are continuing to expand national transport infrastructure, while most developed economies now devote comparatively smaller shares of national output to new infrastructure construction. Australia remains an outlier among advanced economies, investing around 2% of GDP through its long-term Infrastructure Investment Program.

Looking at the longer-term trend, the ITF found that transport infrastructure investment has generally declined over the past decade. Serbia recorded the largest increase in investment intensity, with spending rising by 1.5 percentage points of GDP between the 2012-14 and 2022-24 periods, while Bulgaria, China, Albania and Ireland recorded some of the largest declines. Bulgaria’s reduction largely reflects the completion of projects financed under the European Union’s 2007-13 cohesion funding cycle.

Although road infrastructure continues to account for most transport investment, the report identifies a gradual shift towards rail. Twenty of the 32 countries with available data increased the proportion of transport infrastructure investment allocated to rail over the past decade. Estonia recorded the largest increase, followed by Serbia, Bulgaria, Ireland, Poland and Norway. Only Belgium and France allocated less than half of total transport infrastructure investment to roads in 2024.

Ireland illustrates the changing composition of investment. While overall spending has fallen sharply since peaking at 1.2% of GDP in 2007, rail has accounted for a growing share of investment since 2020 following the government’s €1 billion five-year heavy rail investment programme, covering signalling, track renewal and safety improvements.

The findings come as negotiations begin on the European Union’s next Multiannual Financial Framework, with industry groups and several member states calling for a significant increase in funding under the Connecting Europe Facility to support rail modernisation, cross-border connectivity and transport resilience. The ITF’s analysis suggests that while investment priorities are increasingly shifting towards rail, overall spending remains well below historic levels across much of the developed world.

Commission challenges Dutch rail capacity rules over competition concerns

The European Commission has informed the Netherlands that its rules governing access to capacity on the country’s main railway network may breach EU competition law by giving the state-owned incumbent operator an unfair advantage over rival international passenger rail operators.

The Commission has issued a Letter of Formal Notice setting out its preliminary view that the Dutch capacity allocation rules, introduced in 2024 ahead of the liberalisation of the domestic passenger rail market, are capable of distorting competition where demand for train paths exceeds available network capacity.

Since 2025, the Netherlands has been required to open its domestic rail passenger market to competition. However, the Commission argues that the existing allocation framework gives priority to Nederlandse Spoorwegen (NS), the holder of the main public service concession running from 2025 to 2033, over competing operators seeking access to the network.

According to the Commission, the rules may create an unequal opportunity for railway undertakings to obtain capacity on the Dutch network, allowing NS to maintain or reinforce its dominant position in international passenger rail services.

The Commission’s concerns extend beyond NS’s domestic operations. Through its subsidiary NS International, the operator works with incumbent railway companies in Belgium, Germany, Austria and Switzerland, as well as Eurostar, to provide international services linking the Netherlands with Belgium, Germany, France, Austria, the United Kingdom and Switzerland.

Rather than relying solely on sector-specific railway legislation, the Commission has based its preliminary assessment on Articles 106 and 102 of the Treaty on the Functioning of the European Union. Article 106 prohibits member states from maintaining measures that conflict with EU competition rules where special or exclusive rights have been granted to public undertakings, while Article 102 prohibits the abuse of a dominant market position.

The Commission stressed that the Letter of Formal Notice represents a preliminary assessment and does not prejudge the outcome of the investigation. The Netherlands has been given two months to respond to the Commission’s concerns, after which the executive will decide whether further enforcement action is warranted.

No deadline has been set for concluding the investigation.