The TEN-T legislation is only the beginning of the process, and the real challenge is to move ahead faster to get new and upgraded links into service. Procedural and technical difficulties are slowing down progress on some of the priority axes, notably on cross-border sections, but the major cause of delay is lack of funds. The EU may contribute some funding for these projects, but the majority must come from national and regional governments and the private sector.

In 2004, the total cost of completing the 30 priority axes by 2020 was estimated at EUR 225 billion, including EUR 112 billion to complete the 14 original projects. The latest information available from Member States at the beginning of 2005 indicates that the total remaining investment required has increased to EUR 252 billion. If all the other projects of common interest, but not on the priority list, are included, the total cost of completing TEN-T exceeds EUR 600 billion. Although huge, the investment needed for the 30 priority axes represents only around 0.16 % of European GDP, whereas it is estimated that completing the priority axes will bring additional economic growth of 0.23 % of GDP.

A number of EU funding sources are available to support TEN projects. The dedicated TEN-T budget is used to finance preparatory studies (up to 50 %) and to fund construction (up to 10 % of the total cost, and since 2004 up to 20 % in exceptional cases). Up to and including 2004, a total of almost EUR 5 billion has gone into TEN-T projects from this budget, or an average of EUR 600 million per year since 2000. In the years from 2007 to 2013, the Commission has proposed to increase support from this budget significantly, to a total of EUR 20.35 billion, or almost EUR 3 billion per year. Moreover, for cross-border sections, it also proposes to raise the maximum EU contribution from 20 % to 50 %. However, in mid-2005 the decision on the final budget available for TEN-T in this period remains to be taken.

The Structural and Cohesion Funds may fund TEN-T infrastructure projects in specific regions. In the period 2000–06, these funds will have contributed around EUR 20 billion to TEN-T projects, in particular in Greece, Ireland, Portugal and Spain (which have benefited from the Cohesion Fund in this period). Additional Structural Funding has been allocated to the new Member States, including EUR 2.48 billion in pre-accession support. For 2004–06, EUR 4.24 billion and EUR 2.53 billion are committed from the Cohesion and Structural Funds respectively. Beyond 2006, both the Cohesion Fund and Structural Funds will remain a major source of funds for TEN-T projects in regions with weaker economic performance.

Finally, the European Investment Bank (EIB) has lent around EUR 50 billion to Member States for TEN-T projects over the past decade. In the years up to 2010, it expects to be able to lend the same again for TEN-T projects.

Aside from EIB loans, the total EU funding available for TEN-T can provide only around 5–6 % of the investmentneeded. EU funding can act as a catalyst to get projects going, but Member States must find the majority of funding. Whilst governments have launched many projects which coincide with their national priorities, they have been more hesitant in respect of projects, particularly cross-border links, outside their national plans. Today, investment by governments across the TEN-T network amounts to around 0.3 % of GDP, a far lower proportion than achieved in the past, hence there should be scope for greater national support efforts.

However, even with significantly increased national and Community funding (including loans), there is still a major funding gap before the TEN-T projects can be completed. It is estimated that, for certain projects, the private sector could contribute a maximum of 20 % of the necessary funds, but national governments will remain a crucial element in the funding of TEN-T.

The Commission is examining how to make ‘public–private partnerships’ (PPPs) for construction and operation of cross-border infrastructure more feasible, in particular through a review of procurement and concession rules. For example, the Commission plans to introduce, from 2007, a new mechanism to grant loan guarantees in order to cover commercial risks during the initial phase of exploitation of a concession, for example, if revenue is lower than expected and the concessionary has difficulties in paying back loans on time.

Raising more revenue from users is an essential part of PPPs. The EU has launched an infrastructure charging policy in the rail sector, and is revising its policy for the road sector. Modifications currently under discussion on the user-charging scheme for heavy goods vehicles – the so-called ‘Eurovignette directive’ – seek to set up a kilometre-based system covering the actual costs of the vehicle’s trip. To manage congestion and environmental effects, charges may be differentiated to reflect the level of congestion and the sensitivity of the environment.

In addition, the draft directive allows Member States to apply mark-ups of up to 25 % to tolls for using roads in particularly sensitive areas, notably mountain regions. These funds would then contribute to the investment costs of other transport infrastructure of high European interest, especially railways. The Brenner base tunnel (see priority axis No 1) is but one example which could benefit from this cross-financing.