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Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70
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1. The competent authority shall lay down specifications for public service obligations in the provision of public passenger transport services and the scope of their application in accordance with Article 2(e). This includes the possibility to group cost-covering services with non-cost-covering services.
When laying down those specifications and the scope of their application, the competent authority shall duly respect the principle of proportionality, in accordance with Union law.
The specifications shall be consistent with the policy objectives stated in public transport policy documents in the Member States.
The content and format of public transport policy documents and the procedures for consulting relevant stakeholders shall be determined in accordance with national law.
2. The specifications of the public service obligations and the related compensation of the net financial effect of public service obligations shall:
(a) achieve the objectives of the public transport policy in a cost-effective manner; and
(b) financially sustain the provision of public passenger transport, in accordance with the requirements laid down in the public transport policy in the long term.]
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