This message reports how the European Commission encouraged Spain to liberalize bus passenger transport routes, following a suggestion from the National Markets and Competition Commission (CNMC) after observing success in rail competition. The commission noted that railway dynamics can attract new travelers from other modes, including short-haul flights and road transport. The idea is that Spain might gain from liberalizing the bus market because increased competition typically benefits travelers, offering more services and connections, according to Kristian Schmidt, the General Manager of Community Executive Transport. He spoke during a CNMC-hosted forum on railway liberalization.
In Spain, intercity bus service, covering medium and long distances, operates under a concession system. The government and regional authorities are responsible for bidding, granting administrative concessions to firms that will operate under a regulated framework with private management. By the end of 2019, ALSA held an estimated market share of the total Spanish concession market, accounting for about 30 percent of total revenue, a figure that surpassed the second-largest operator, Keep it up, according to CNMC data.
The concession model enables cross-subsidization, where profitable routes help sustain less profitable ones. Most existing privileges have expired, and the Ministry of Transport is developing a new framework aimed at ensuring that essential services remain available while introducing competition on certain routes.
Around a year earlier, after a comprehensive study titled Study on Intercity Passenger Transport by Bus, the guiding authority recommended opening service on routes longer than 100 kilometers to competition, following the examples set by countries such as Germany, Italy, France, and Portugal. The CNMC notes that liberalization in these countries has yielded lower prices, more frequent connections, and improved service quality for travelers, mirroring the positive outcomes already seen in the rail sector within Spain.
The government embraced the CNMC’s approach within the framework of the Sustainable Mobility Act, which was debated in the Congress of Deputies. The Prime Minister announced the dissolution of the courts to call elections scheduled for July. Specifically, Article 50 of the contemplated text would allow the Council of Ministers to permit the provision of services in a free competition regime on routes recommended by the Ministry of Transport, Mobility and Urban Agenda, obliging operators to comply with established requirements through the formal legal process. United Podemos opposed this measure.