EU takes Austria to court for discriminatory bus tariff system

Commission sources have informed MaltaToday that the European Union has initiated legal proceedings against Austria for discriminating against foreign students using public transport in the country and is still “analysing” a two tier bus fare system which discriminates in favour of residents in the Estonian capital Talinn.

“The Commission is analysing such complaints exclusively from the angle of its compatibility with EU law. The key point of this analysis is whether there is any direct or indirect discrimination on grounds of nationality, since EU citizens who are lawfully residing in another Member State are in principle entitled to the same benefits as national residents,” a spokesperson for the commission told MaltaToday.

According to the same sources the analysis of such complaints have led to the opening of case in the European court against Austria. Two other analyses, including the one regarding Tallinn and Malta, are pending.

The case against Austria

The European Commission decided to bring Austria before the European Court of Justice for preventing EU students in the country from benefiting from the same discounted public transport fares that are offered to Austrian students.

In most Austrian regions students benefit from reduced transport fares if their families receive family allowances in Austria. This is case for most Austrian students. However, the same discounts are not, as a rule, offered to other EU citizens who are studying in Austria, since it rare that their families reside in the country and qualify for family allowances.

The benefit from discounted fares for students can be substantial: in Vienna, a reduced ticket valid for six months costs €50 for students whose families live in the city and receive family allowances; it costs €100 for those who do not reside in Vienna, and €128.50 for students whose families are not entitled to family allowances because they live in another country.

The Commission believes that Austria has failed to apply the principle of equal treatment by giving preferential treatment to its own nationals.

The Commission sent a 'reasoned opinion' to the Austrian authorities in January 2010. A reasoned opinion is a formal request to comply with EU law, calling on the Member State to inform the Commission of the measures it has taken to remedy the situation within a specified period, usually two months. Since Austria did not take action to comply with EU law, the Commission has now decided to refer the matter to the Court of Justice.

The Talinn case

Under the city's new regulations and fare structure, discount fares in Tallinn will be available only for registered residents of Tallinn.

For instance, a 90-day electronic ticket that now costs 660 kroons (€42) for Tallinn residents, will cost 825 kroons (€52) for non-Tallinners. A regular fare remains 15 kroons (€1) for both categories.

Moreover, discounts for students, pensioners, parents of three or more children, and the children themselves can enjoy a free ride only if they have been entered in the Tallinn population registry.

The student organization TÜÜL claimed that the City of Tallinn violated several key principles of the EU including the freedom of goods, services and people when it on February 1 introduced a new system in which fares for students not registered as residents of Tallinn went up over 300%.

TÜÜL said it has asked the European Commission to initiate an action against the Republic of Estonia under the provision that the Tallinn City Council regulation violates the EU treaties.

Commission sources confirmed that the investigation is still ongoing.