On 14 July 2026, the European Parliament and the Council adopted a decision empowering Austria to amend its 1958 bilateral road transport agreement with Switzerland to authorise cabotage operations for international coach and bus services in their border regions. The decision, taken at the Council meeting of 8 July 2026, allows Austria to negotiate cabotage rights—where passengers can be picked up and dropped off within the same country during an international service—in specific Austrian border districts, provided there is no discrimination against EU carriers and no distortion of competition.
The empowerment responds to Austria's request of 17 March 2025, which argued that allowing cabotage would foster territorial cohesion in border areas. Currently, cabotage is prohibited under Article 20(1) of the EU-Swiss Agreement on the Carriage of Goods and Passengers by Rail and Road, and Austria's 1952 bilateral agreement with Switzerland does not permit it either. The decision defines the eligible Austrian border regions as the districts of Bludenz, Bregenz, Dornbirn, and Feldkirch in Vorarlberg, and the Landeck district in Tyrol. Austria must inform the European Commission of the amended agreement and notify its text; the Commission will then inform the European Parliament and the Council.
The decision is a targeted derogation from the general EU-Swiss cabotage ban, reflecting a push for greater territorial cohesion in cross-border regions. It balances the interests of local transport connectivity with the need to maintain a level playing field for EU transport operators. The conditional nature—requiring non-discrimination and no competitive distortion—aims to prevent the measure from undermining the single market for road passenger transport.
Stakeholder impact - Austrian coach and bus operators: Gain potential new market opportunities in Swiss border regions, but must comply with non-discrimination rules. - Swiss transport operators: May face increased competition from Austrian carriers in border areas, though the measure is reciprocal under the bilateral agreement. - EU carriers based outside Austria: Protected by the non-discrimination condition, ensuring they are not disadvantaged compared to Austrian operators. - Passengers in border regions: Benefit from improved cross-border public transport links and potentially more frequent services.
Institutional follow-up Austria is now authorised to negotiate and conclude the amended bilateral agreement with Switzerland. Once concluded, Austria must submit the text to the European Commission, which will inform the European Parliament and the Council. The empowerment does not require further EU legislative action unless the amended agreement raises competition concerns.