The EU transport system is entering the next phase of fundamental transformation. The railways are becoming one of the key tools for implementing the Green Deal and solving ecological problems for the period up to 2050. A range of documents aimed at advancing the realisation of the Trans-European Transport Network (TEN-T) was adopted at the Union level in recent years. Transfer a large proportion of transport from road and aviation to rail, multimodal transportation, advanced construction and modernisation of high-speed railway lines (HSR) are the priorities of the policy. This article has a twofold objective. First, it analyses the condition and market environment of the railways. Second, it investigates the possibilities of implementing the TEN-T program to reduce greenhouse gas (GHG) emissions, increase multimodal transportation and the construction/upgrading new HSR. The results suggest that a set of obstacles impede GHG emissions reduction in the shifting of transport from road and aviation to rail, multimodal transportation and the construction of HSR. The main trend is that rail transport activity in the EU remained almost constant from 2010 to 2022 with a slight increase in passenger transport and some structural changes. Within the next 25 years, the most tangible impact for the EU economy, ecology and society of all modes of transport can be provided by HSR expansion. The author concludes that in order to form the Union Transport and Economic Space, deep institutional reforms on the railways are needed with special focus on the introduction of uniform standards, norms and regulations for all participating countries.