Public service obligation in the context of Banking law

Rail transport in Europe has diverse technological standards, operating concepts, and infrastructures. Common features are the widespread use of standard-gauge rail, high operational safety and a high proportion of electrification. Electrified railway networks in Europe operate at many different voltages, both AC and DC, varying from 750 to 25,000 volts, and signaling systems vary from country to country, complicating cross-border traffic.

The European Union (EU) aims to make cross-border operations easier as well as to introduce competition to national rail networks. EU member states were empowered to separate the provision of transport services and the management of the infrastructure by the Single European Railway Directive 2012. Usually, national railway companies were split into separate divisions or independent companies for infrastructure, passenger and freight operations. The passenger operations may be further divided into long-distance and regional services, because regional services often operate under public service obligations (which maintain services which are not economically interesting to private companies but nonetheless produce societal benefit), while long-distance services usually operate without subsidies.