The last five years have witnessed fundamental transformations which have created a new context that requires recalibrating EU transport policy and regulation: new mobility patterns after COVID; geostrategic shocks in the form of war, energy crises and trade imbalances; challenges in decarbonising transport, the hardest-to-abate emissions sector in Europe; a slow digital transition; and generalised doubts about the competitiveness of the European economy. The main driver of EU transport policy over recent decades has doubtlessly been the construction of the Single European Transport Area (SETA). This broad objective remains relevant as there are obvious gains in competitiveness when reducing fragmentation and increasing competition in the SETA. However, additional competitive gains can be achieved by reinforcing a systemic approach in European transport, and regulation has an important role to play. Fragmentation in the transport ecosystem due to vertical and horizontal separation reduces efficiency, and the current regulatory framework lacks coordination tools. Urban nodes play a fundamental role in such a systemic approach. EU transport policy has always focused on corridors, but more attention should be paid to nodes, and in the case of transport, nodes are in and around cities and metropolitan areas. Nodes are indeed key to increasing the efficiency and resilience of the overall transport system. They are also key to competitiveness. Digitalisation enables new efficiencies because it facilitates information exchange and coordination. It is the best tool to reinforce a systemic approach. Furthermore, digitalisation empowers more active infrastructure management to create efficiencies in all the network industries. Regulation is necessary to accelerate business-to-business data exchanges when bottlenecks persist, which is often the case in transport. The Draghi Report calls for a more active industrial strategy. Transport is a good case in point as it has been at the frontline of large innovation programmes in the EU (ERTMS, SESAR, etc.). Investment in transport programmes should not be replaced by investment in new technologies such as AI and new materials etc. but combined with them. Valuable lessons can be learnt from the difficulties in implementing technologies developed by these programmes. In the next five years there will have need to be a focus on implementing decarbonisation legislation, which will lead to important challenges. There is a chicken-and-egg problem, as the supply of chargers for electric vehicles and providers of alternative fuels in general is too slow, thus limiting the uptake. Furthermore, transport is the hardest-to-abate emission sector in Europe. In the longer term, as decarbonisation in transport progresses, energy might well become a bottleneck and costs will increase, thus challenging connectivity. The Draghi Report is particularly vocal about aligning decarbonisation with industrial policy. In transport this means that innovations need to be supported to develop new technologies. Massive investment in the deployment of existing and future solutions will have to be ensured, making decarbonisation not only a challenge but an opportunity. Doubts will deter the necessary investments and exacerbate the chicken-and-egg problems. However, flexibility is necessary to accommodate the targets and obligations in these hard-to-abate sectors. In the last five years the geostrategic context has shifted considerably. War, trade imbalances and a decline in competitiveness due to policies such as decarbonisation create new challenges. New policies are necessary to ensure the resilience of European transport and the global competitiveness of European companies. Investment in transport is necessary as efficient transport is a precondition for a competitive European economy. Investment is particularly necessary as transport is the hardest-to-abate emissions sector. In terms of innovation, decarbonising transport will require massive investment to make decarbonisation even possible. Furthermore, experiences in the transport sector show that it is not sufficient to innovate in order to succeed, as implementation is equally important. These challenges will require massive investment, so new forms of investment will be necessary. Traditional EU funding in transport needs to evolve from focusing mostly on missing links to focusing mostly on efficiency gains. Mobilising private funding is key, particularly in sectors that traditionally have not been attractive to private investment such as railways and urban infrastructure.