Restructuring Sweden's railways : the unintentional deregulation

Open Access

Abstract

In 1988, Sweden made a vertical cut in its nationalised railway monopoly; since then, infrastructure is handled by a public-sector agency while trains initially were run by a government-owned monopolist. This paper seeks to describe this reorganisation, the subsequent process towards free entry and competition in parts of the sector and the consequences of these changes. It is argued that the policies have not focussed (ticket) prices and competition issues and rather been directed towards the sector's inability to recover costs, which seems to be a Europe-wide phenomenon. Some recommendations for further changes of the industry are suggested. ; Reprint from Swedish economic policy review, vol. 9, no 2, Fall 2002