Post-Tempi Tragedy, Greece and Italy Move to Reform Troubled Train Deal

11:07 16/5/2025 - Πηγή: Dikaiologitika

Greece and Italy Reset Railway Deal After Years of Stagnation - €810 Million in New Investments Aimed at 2027 Modernization.

Greece and Italy are moving to overhaul a long-stalled railway agreement, following a preliminary understanding between Greek Prime Minister Kyriakos Mitsotakis and his Italian counterpart

Giorgia Meloni. The deal concerns Hellenic Train, the Greek railway operator owned by Italy’s state-run Ferrovie dello Stato (FS), and marks a fresh attempt to revitalize a partnership that has largely failed to deliver on its promises since its inception in 2022.

Originally signed and ratified by the Greek Parliament in July 2022, the 15-year public service contract envisioned a significant modernization of Greece’s railway system. It called for investments of up to €750 million, mostly by Hellenic Train, to procure new rolling stock, upgrade facilities, and adopt cutting-edge technologies. In return, the Greek government committed to key infrastructure improvements—especially in safety systems such as signaling and remote train control—along with annual subsidies of €50 million to support unprofitable routes in accordance with EU regulations.

However, little of the initial vision materialized. Hellenic Train failed to deliver the majority of its promised rolling stock investments, while the Greek state did not complete its infrastructure commitments. As a result, the agreement remained dormant for nearly two years. This failure took on tragic significance in the wake of the 2023 Tempi train disaster, where the absence of modern safety systems was cited as a contributing factor. Public scrutiny intensified, yet explanations remained scarce. The then-transport minister defended the agreement’s "offset benefits" without addressing why investment requirements were scaled down or why crucial safety upgrades never occurred.

Now, under the new framework, both sides are aiming for a reset. Hellenic Train is expected to invest €360 million, including the purchase of 23 new trains and the creation of modern maintenance facilities. Meanwhile, the Greek state is committing to over €450 million in rail infrastructure projects. These include the restoration of railway lines damaged by recent storms in Thessaly and Central Greece, the completion of long-delayed signaling and telemanagement systems, and the construction of a unified rail monitoring center. Although these projects have been contracted out, they are still in the early stages, with completion targeted within 15 months.

The revised agreement, expected to be formalized in a new contract, will reportedly include stricter terms, clear timelines, and enforceable penalties. The goal, as articulated by Mitsotakis, is to fully modernize Greece’s railway network by 2027—both structurally and operationally. Whether the revised deal will alter the subsidy terms for Hellenic Train’s operation of loss-making routes remains unclear.

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