Entry Into Force of the Law on Spanish Rail Services Delayed Until 31 December 2004

By Inés de Alvear, Julio López Quiroga and Ana Montero

The entry into force of the Law 39/2003, of November 17, 2003, on the Rail Sector, which was meant to take place on May 18, 2004, has been postponed until December 31, 2004 by Royal Decree-Law dated May 7, 2004.

Law 39/2003, of November 17, 2003, implemented European Directives number 12/2001, 13/2001 and 14/2001 and brought in a dramatic reorganization of the legal regime on State managed rail services.

The European Directives provided for, inter alia, the obligation to separate the activities of management of the rail infrastructure and exploitation of transportation services, at least from an accounting point of view, although not necessarily by establishing different bodies handling each one.