On 8 July 2026, the Council of the European Union adopted a legislative act empowering Austria to amend its bilateral road transport agreement with Switzerland to authorise cabotage operations during international coach and bus passenger services in their border regions. The decision, based on Articles 2(1) and 91 of the Treaty on the Functioning of the European Union, follows a Commission proposal and the European Parliament's first-reading position, which reflected an interinstitutional agreement with adjustments to the original proposal.
The act permits Austria to negotiate with Switzerland to allow coach and bus operators to pick up and drop off passengers within the other country's territory while providing international services in border areas. This is intended to enhance cross-border transport connectivity and efficiency, supporting regional economic integration and tourism. The decision does not set a precedent for other member states but is specific to Austria and Switzerland.
Austrian and Swiss coach operators gain new market opportunities in border regions, potentially increasing revenue and service flexibility. Passengers in these areas benefit from improved public transport options and reduced travel times. However, existing transport operators in the border regions may face increased competition. EU transport regulators will need to monitor compliance with cabotage rules and ensure alignment with EU law, though the impact on the broader EU regulatory framework is limited.
The legislative act will be published in the Official Journal of the European Union and enter into force on the twentieth day following publication. Austria is expected to proceed with amending its bilateral agreement with Switzerland accordingly.