The merger between the German and French train manufacturers Siemens and Alstom has been blocked by the EU’s competition enforcer, who dismissed the view that a tie-up was necessary if Europe was to compete with state-backed rivals from China.

Margrethe Vestager, EU competition commissioner, announced the veto on Wednesday after fellow commissioners and national regulators backed her position that a deal could lead to price increases and restrict choice, which could ultimately hurt European passengers.

“Without sufficient remedies, this merger would have resulted in higher prices for the signalling systems that keep passengers safe and for the next generations of very high-speed trains,” Ms Vestager said. She added: “The companies were not willing to address our serious competition concerns.”