Austria Can Now Run Cross‑Border Bus Trips with Switzerland

Proposal for a Decision of the European Parliament and of the Council
COM(2025) 773 final – 2025/0407(COD)

Purpose
Empower Austria to change its 1958 road‑transport agreement with Switzerland so that bus and coach operators can run cabotage services (cross‑border trips that start and finish on the same side of the border) in the Austrian‑Swiss border regions.

Why it matters

• The border areas of Austria and Switzerland are tightly linked; many people travel daily for work or leisure.
• The current Land Transport Agreement (LTA) says that a carrier based in one country may not carry passengers between two points inside the other country (Article 20(1)).
• Article 20(2) allows existing cabotage rights that were in place when the LTA was signed (21 June 1999) to continue, but no such rights existed for Austria‑Switzerland.
• Cabotage would let buses carry more passengers, improving efficiency and competitiveness.
• The EU has already allowed similar arrangements for Germany (Dec 2020) and Italy (Dec 2020).

Legal basis

• Article 2(1) and Article 91 of the Treaty on the Functioning of the EU (TFEU).
• The decision is an individual empowerment addressed to Austria.

Key conditions

• Cabotage is allowed only in the following Austrian districts: Bludenz, Bregenz, Dornbirn, Feldkirch (Vorarlberg) and Landeck (Tyrol).
• No discrimination against EU carriers and no distortion of competition.
• The amendment must be reported to the Commission, which will inform the Council and Parliament.

Budget impact
None – the decision does not affect the EU budget.

Decision text (simplified)

1. Empowerment – Austria may amend its 1958 road‑transport agreement with Switzerland to allow cabotage in the specified border districts, provided there is no discrimination and no distortion of competition.
2. Reporting – Austria must notify the Commission of the amendment and provide the text of the new agreement. The Commission will inform the Council and Parliament.
3. Scope – The decision applies only to Austria.

The decision is adopted by the European Parliament and the Council, signed in Brussels on 18 December 2025.