The Council of the European Union has adopted a decision authorising Austria to amend its 1958 bilateral road transport agreement with Switzerland to allow cabotage operations by coach and bus in defined border regions during international passenger services. The decision, dated 8 July 2026, responds to a request from Austria submitted on 17 March 2025, aimed at fostering territorial cohesion in the Alpine border area.
Under the current EU-Swiss Agreement, cabotage — the picking up and dropping off of passengers within the same country — is prohibited. The Austrian-Swiss bilateral agreement also does not provide such rights. The new empowerment allows Austria to negotiate an amendment that would permit cabotage in the Austrian border regions of Vorarlberg (districts of Bludenz, Bregenz, Dornbirn and Feldkirch) and Tyrol (district of Landeck).
The authorisation is conditional on non-discrimination between carriers established in any EU member state and on safeguards against distortion of competition. Austria must inform the European Commission of the agreed amendment and notify the final text; the Commission will then inform the European Parliament and the Council. The decision is addressed solely to the Republic of Austria.
This is the first time the EU has granted such a bilateral cabotage empowerment for coach and bus services. The move is expected to benefit regional transport operators and passengers in the cross-border Alpine region, while raising questions about potential competitive impacts on Swiss carriers. No prior coverage of this file exists in the last 180 days.
Austrian and EU coach operators in the border regions gain new market opportunities for domestic legs of international routes. Swiss operators may face increased competition on those segments. Passengers in the border regions benefit from more flexible services. The European Commission gains a monitoring role to ensure compliance with non-discrimination and competition rules.