Caravan Insurance

The EU is holding a drive to make the bloc's freight system more environmentally friendly, which may ultimately be detrimental to van firms across the continent.

Van drivers are set to face strengthened competition from other forms of transport, as the EU is offering to help fund projects that can improve Europe's freight system in a manner that is not reliant on road transportation.

While the project could benefit van drivers through reducing congestion on Europe's roads, many will be concerned by its insistence on trying to initiate a shift away from reliance on roads towards greater use of other freight transport forms.

The European Commission explained in a statement: "The general aim of the programme is to help companies initiate new services for shifting freight off the road and on to short-sea shipping, rail and inland waterways during the high risk start-up phase.

It added: "However, only projects capable of demonstrating sustainable non-road freight transport services - i.e. projects that can survive on the market even after they cease receiving EU financial support - have a chance at receiving a grant."

The scheme will offer successful applicants funding for up to four years and has increased its budget for this drive by nearly €5 million to €35 million accordingly.

It may be of some benefit to van firms, however, in its desire to greater improve the efficiency of the European freight system, including increasing interoperability between different transport forms.