Chapter 10 The interplay of regulation and State aid control in the transport sector
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Public funding is common in the transport sector, both for infrastructures and for the provision of public transport services; at the same time, notwithstanding liberalization processes, there remain several situations of significant market power. In such economic environment, both economic regulation and the control of State aid play an important role. This chapter outlines the main features of the interaction of these policy tools, in general and with reference to the different transport modes (airports, ports, rail infrastructure and public transport services by rail and road). For benchmarking, which is used both in regulation and in State aid control, the existence of widespread public intervention should be taken into account in order to avoid taking biased comparators as benchmarks.

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