On 7 July 2026, the European Parliament adopted a legislative resolution empowering Austria to amend its 1958 bilateral road transport agreement with Switzerland to authorise cabotage operations by coach and bus in designated border regions. The decision, adopted under the ordinary legislative procedure, responds to a request from Austria submitted on 17 March 2025 and aims to foster territorial cohesion in cross-border areas while safeguarding the internal market.
The resolution allows Austria to permit carriers established in Switzerland to provide domestic passenger transport services within specific Austrian border districts during international coach and bus services, provided there is no discrimination between Union carriers and no distortion of competition. The defined border regions are the administrative districts of Bludenz, Bregenz, Dornbirn, and Feldkirch in Vorarlberg, and the district of Landeck in Tyrol. Austria must inform the European Commission of any amendments made to the agreement and notify the text of the amended agreement, with the Commission subsequently informing the European Parliament and the Council.
The decision creates a conditional exception to the general prohibition on cabotage under Article 20 of the EU-Swiss Agreement on the Carriage of Goods and Passengers by Rail and by Road, and to Regulation (EC) No 1073/2009, which permits cabotage only by carriers holding a Community licence. By enabling cabotage in these border regions, the measure is expected to improve vehicle load factors and economic efficiency of international coach and bus services, strengthening the integration of the affected areas. The empowerment may serve as a precedent for similar bilateral arrangements between other Member States and Switzerland.
Stakeholders impacted include Austrian and Swiss coach and bus operators, who will gain new market opportunities in border regions, potentially increasing competition and service efficiency. Passengers in the defined border districts stand to benefit from more flexible and frequent transport options. However, EU carriers operating in the same regions may face increased competition from Swiss operators, though the non-discrimination and competition-distortion safeguards aim to mitigate adverse effects. The European Commission will monitor implementation to ensure compliance with internal market rules. The decision is addressed solely to Austria and does not require further legislative steps at EU level.