The European Commission presented proposals for a Fourth Railway Package to encourage more innovation in EU railways by opening EU domestic passenger markets to competition, as well as substantial accompanying technical and structural reforms.

The Fourth Railway Package presented by the European Commission is a comprehensive package of measures to deliver better quality and more choice in railway services in Europe. The proposals include standards and approvals that help to cut the administrative costs of rail companies and facilitate the entrance of new operators into the market. In June 2012, the Permanent Representatives Committee of the Council reached a provisional agreement on single European railway area directive.

Moreover, the Commission proposes better quality and more choice through allowing new players to run rail services. To encourage innovation, efficiency and better value for money, the Commission is proposing that domestic passenger railways should be opened up to new entrants and services from December 2019. On the other hand, in order to ensure fair access for all to the railway, the Commission highlights that independent track ("infrastructure") managers must run networks in an efficient and non-discriminatory manner and coordinate at EU-level to underpin the development of a truly European network.

A vibrant rail sector depends on a skilled and motivated workforce, according to the Commission. Experience in Member States which have opened their markets shows this should lead to new and better jobs. Under the EU regulatory framework, Member States will have the possibility to protect workers by requiring new contractors to take them on when public service contracts are transferred, going beyond the general EU requirements on transfers of undertakings.