SUSTAINABLE DEVELOPMENT OF TRANSPORT MARKET INSTITUTIONS FOR SMALL COUNTRIES

Creation of a unique European transport market requires establishment and strengthening of institutions which govern the market and develop governing mechanisms. This process in Europe takes place independently for each transport mode, with different rates and solutions. In the railway sector, along with railway infrastructure market opening, it is required to establish more institutions. One can distinguish between institutions which directly govern relations between market participants (Regulatory Body, Safety Authority, Licencing Body and Investigation Body) and institutions which grant various approvals for products of railway market (Notify Body and Designated Body). EU legislation defines roles, competence and functions of these institutions, but not their models. Likewise in the railway transport, there are several institutions in the road transport which govern the road transport market. Small countries face the issues of resources, efficiency and possibilities to establish large number of transport market institutions. Is the number of institutions required sustainable for small countries? What models are sustainable under current circumstances and how to develop them? What approach to develop for finding a solution to this problem? These are some of the issues discussed in this paper which gives Serbia as an example of a small country. The main issue raised in the paper is whether the required number of institutions is sustainable under the changes present circumstances with requirements set out in the EU legislation.