Spain to abolish motorway toll charges in 2024

In a significant development, the Spanish Government has reached an agreement with the European Commission to eliminate motorway tolls starting in 2024. This decision comes after the Commission accepted Spain's proposal to remove the initial plan of introducing tolls for motorway usage from its Recovery Plan.

A spokesperson from the EU Commission confirmed, "Substantial progress has been made, and constructive discussions are ongoing with the Spanish authorities to expedite the evaluation process," as reported by Cadenaser on Friday.

While the removal of tolls is seen as a positive step by many, it poses a crucial challenge – finding alternative funding sources for road maintenance. Currently, approximately 11% of Spain's road network, spanning 26,400 kilometres, is in a state of serious deterioration.

An estimated €9.9 billion is required for road repairs, with €3.2 billion allocated for the national network (26,400 km) and €6.6 billion for regional and provincial government networks (75,300 km). However, securing these funds without relying on tolls or similar fees remains a significant hurdle, given that 95% of the required budget is earmarked for basic "replacement and road reinforcement."

In rejecting tolls, the agreement with Brussels suggests promoting the transportation of goods via railways. Currently, a staggering 95.8% of goods are transported by road in Spain, with only 1.2% using rail transport, making the transition challenging.

Despite the push for railways, road traffic continues to grow at a faster rate than other modes of transport. In the past year alone, overall cargo transport increased by 5.7%, while road traffic surged by over 10%. Notably, motorways accounted for more than half of the country's cargo movement.

This increase in road traffic has led to growing congestion on the roads, making a smooth transition from trucks to trains appear impractical. While the government's plan hints at this direction, it necessitates substantial investments in both funding and logistics.

Currently, railways receive the lion's share of transportation investment, with 42.5% of last year's allocation. The 2023 Budget allocates €1.04 billion for road infrastructure and a significant €5.40 billion for railway infrastructure, which is five times more.

However, transitioning the current cargo volumes from roads to railways would require massive investments, a challenge compounded by the fact that half of the investment is allocated to high-speed trains (AVE).

Moreover, logistics, including road connectivity for short-distance deliveries, remain integral to the transportation landscape.

In summary, while tolls have been ruled out for 2024, the decision's permanence remains uncertain. It may not apply as long as European funding remains available, but it could potentially be reintroduced due to a lack of domestic funds.

The European Commission has responded positively to alternative toll proposals presented by the Spanish government. These proposals include incentivizing railway transport and subsidizing rail-based goods transportation to facilitate the shift.

Minister of Transport, Mobility, and Urban Agenda, Raquel Sánchez, also 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 in the future.