On 1 July 2026, the European Parliament adopted a legislative act authorising Austria to amend its 1958 bilateral road transport agreement with Switzerland to allow cabotage operations in border regions for international bus services. The act, based on a proposal from the European Commission, grants Austria a derogation from the EU-Switzerland Agreement on the carriage of goods and passengers by rail and road (1999), which generally prohibits such cabotage. The decision is expected to improve economic efficiency and territorial cohesion in the cross-border area by allowing Swiss and Austrian bus operators to pick up and drop off passengers within the other country's border zone during an international journey.
The document integrates the Parliament's position without substantive changes to the Commission's original proposal. Key provisions include a formal authorisation for Austria to modify the bilateral agreement, subject to a non-discrimination clause; a requirement for Austria to notify the Commission of the amended text, which then informs the European Parliament and the Council; and a condition that the authorisation must not lead to discrimination between transport undertakings or distortion of competition within the EU's internal market for bus services. The cabotage is strictly limited to Austria's border regions, with their definition to be established in a manner consistent with Regulation (EC) No 1073/2009 on common rules for access to the international market for coach and bus services.
The act reinforces the principle that cabotage rights for third-country operators fall under EU exclusive competence, preventing unilateral member state action that could fragment the internal market. It also sets a precedent for managing bilateral transport agreements with Switzerland, demonstrating that the EU can grant limited, non-discriminatory derogations to support regional integration under strict conditions. The requirement for parliamentary and council notification ensures political accountability. The decision primarily impacts Austrian and Swiss bus operators, who will gain new market opportunities in border regions, while EU regulatory bodies maintain oversight to prevent competitive distortions. National authorities in Austria and Switzerland will need to negotiate and implement the amended agreement, and EU competitors in the bus transport sector may face increased competition in border areas.