Give Me a Crash Course In . . . the end of the train as we know it

What's all this about the EU trying to change the Irish railway system? The European Commission is working on legislation to establish a single railway market across the EU. The grand plan is that a passenger could get on a train in Spain and end up in Poland with minimal disruption. It also aims to encourage competition and innovation by opening up national rail contracts to international competition.

Why is it in the news? In 2013 the commission unveiled its "fourth railway package", after similar moves to open up rail legislation since the 1990s. It is trying to get agreement from all 28 EU member states on the proposal. Among the most contentious plans is one that would put all public-service rail contracts in the EU out to tender from December 2019.

Where does Ireland fit into this? Apart from the Luas light-rail track, which is run by part of the French company Veolia, the Irish railway system has always been operated by Irish Rail, part of the State-owned CIÉ. So far it has had derogations from EU policy; until 2013 it was not obliged to split its operational and infrastructure businesses as otherwise required under European law. This time the commission has Ireland in its sights; it believes Ireland is a small market and should not be treated differently. That the Luas contract attracted outside interest and has been run successfully are being taken as indications that public tendering can work in Ireland.

What does the Government say? The Government is strongly against the railway network being put out to tender, fearful of the financial and industrial-relations implications. Meetings have been taking place in Brussels between Government representatives, the European Commission and MEPs over the past few months, to try to argue Ireland's case. The 10-year contract to run the Irish rail service comes up for renewal in 2019.

Does the European Union have the power to intervene in Ireland's domestic matters in this way? As we saw in Ryanair's many failed attempts to buy Aer Lingus, the commission has teeth when it comes to competition issues. Similarly, the whole principle of the single market is that goods and services should be able to move freely between member states in a way that is good for consumers and businesses. The European Union is also the king of compromise, however, and, as with many aspects of EU policy, there is likely to be a fudge.

So the Irish rail network may not be privatised? The commission has said it is prepared to compromise. One proposal being pushed by Ireland and seven other small member states, including Luxembourg and a number of eastern European countries, is that the contract may be awarded to Irish Rail but the company will have to meet "key performance indicators" to ensure efficiency. Fail to meet those indicators and the contract could be cancelled or a fine imposed. Ireland wants individual states to assess the indicators. The European Union insists on a Europe-wide regulator. At the very least, Irish Rail is facing stronger EU oversight by 2019.