HEALTHPLAN MAGAZINE

The Spanish Government has agreed with Brussels that there will be no highway tolls in 2024. The agreement was met after the European Commission accepted the Spanish Government's proposal to “remove from the Recovery Plan the initial idea of introducing payment for the use of highways.”

Speaking to Europa Press, a Commission spokesperson confirmed that "Much progress has been made and constructive conversations are being held with the Spanish authorities with a view to finalising the evaluation as soon as possible."

The agreement with the European Commission rejects highway tolls and instead promotes rail transport.

However, several questions arise about the practicality of this pact. Can Spanish roads be maintained without tolls? Does the Spanish rail system have the capacity to handle increased transportation? And How long will it take for road traffic to decrease?

Eliminating tolls means finding alternative funding for road maintenance. The main issue is how to secure nearly 10 billion euros that is needed for road repairs. According to the Spanish Road Association, currently, 11 percent of the road network in Spain (26,400 kilometres) is seriously deteriorated.

To be more precise, 9.918 billion euros is needed for road repairs: 3.261 billion euros for the national network (26,400 km) and 6.657 billion euros for regional and provincial governments' networks (75,300 km). However, finding this 9.918 billion euros without tolls or similar fees remains a significant challenge, as 95 percent of it is needed for basic "replacement and road reinforcement."

The agreement with Brussels rejects tolls and suggests transporting goods via railways. However, can the Spanish railways handle the volume currently transported by road? The answer is quite simply no, at least not at present. In Spain, 95.8 percent of goods are transported by road, with only 1.2 percent by rail, making the transition challenging.

Traffic on roads continues to grow faster than other modes of transport. While in the past year overall cargo transport increased by 5.7 percent, road traffic surged by over 10 percent.

Traffic on freeways and highways also increased significantly, accounting for more than half of the country's cargo movement.

As a result, roads are becoming increasingly congested, making a seamless transition from trucks to trains unrealistic. While the government's plan hints at this direction, it requires substantial investments in both funding and logistics.

Railways currently receive the largest share of transportation investment, with 42.5 percent of last year's allocation. The 2023 Budget allocates 1.040 billion euros for roads and a significant 5.408 billion euros for railway infrastructure, five times more.

However, transitioning current cargo volumes from roads to railways would require massive investments, which seem unfeasible, particularly when half of the investment is allocated to high-speed trains (AVE). Additionally, logistics, including road connectivity for short-distance deliveries, are crucial.

In summary, tolls have been ruled out, but it remains uncertain if this decision is final. While it may not apply as long as European funding is available, it might be reintroduced due to a lack of domestic funds.

The European Commission has responded positively to alternative proposals for tolls presented by the Spanish government, including incentivising railway transport and subsidising rail-based goods transportation to facilitate the shift. Minister of Transport, Mobility, and Urban Agenda, Raquel Sánchez, highlighted that the European Commission has approved plans to establish an emissions accounting system across the European Union from 2027, which could potentially result in a double tax at that time.

Sources

https://spanishnewstoday.com/spain_motorway_charges_scrapped_drivers_to_save_money_in_2024_2243305-a.html
https://www.europasur.es/campo-de-gibraltar/autovia-A-7-peaje-previsto-2024_0_1831918428.html
https://cadenaser.com/nacional/2023/09/22/el-gobierno-renuncia-a-los-peajes-en-autovias-pero-quien-pagara-ahora-el-mantenimiento-de-las-carreteras-cadena-ser/