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Abstract Research purposes: Through doing the study on EU's policies on economy, common transportation and railway supporting, this paper analyzes the key effects made by the EU 's policy on transport , especially on railway transport, on the sustainable development strategy and the coordinating development of various transport modes from viewpoint of merging the EU's integration process into the economy, politics and society. The study shows that with the continuous progress of EU's economic policies, EU's integration process is being accelerated, especially when EU's regional policies have promoted the adjustment of economic structures among its member states by financial aids and arrangement of construction projects.
Research conclusions: EU's common transport policy is intended to get rid of various restrictions and coordinate the transports among the member states. To invigorate railway transport is an essential step for realizing a balanced development of different transport modes. EU's policy on railway transport has been laid down in laws, and all the member states，requested to change their policies into laws. For years, EU has made efforts on establishing a unified European railway system for the purpose of establishing a unified European railway market, thus enhancing the unified use of its railways and further opening the railway transport market. EU's railways are financed mainly by public budget , private investment, highway toll income and turning the external costs into internal expenses, so as to maximize the benefits of transport.
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2008, Vol. 25 
