ABSTRACT
The functionalist theory of the 'regulatory policy cycle' outlined in the introduction identifies a series of problems that have to be overcome if European decisions are to make a difference at the national level. The theory of the European policy cycle was developed to explain what is widely believed to be a success story in the European Community. The theory of the regulatory policy cycle combines many partial theories in an attempt to explain the consequences of European decision making. In road haulage the implementation of the European directive liberalising cabotage did not encounter any problems in any of the member states, including Italy. The Italian antitrust action regarding railways therefore has even been viewed as contradicting European transport policy. The rail sector has been the object of comprehensive and continual investigation by the Antitrust Agency. The production of transport services is governed by rules that originate in the country of origin and rules originating in the destination country.
