The Directive requires tendering of public service obligation type services, i.e subsidised services. Not all services. Liberalisation of services that can run on a commercial basis is via open access.
The tendering process in Germany has resulted in contracts being awarded to the private sector. But this isn't a one way process. The contacts are fixed term. The services are also owned by the public sector, just operated privately. Moreover, in Germany the tenders let by state and local governments ensuring a far more bottom up democratic accountability than has ever existed in the UK franchising process, at least outside of Scotland, Wales, Merseyside and London.
The model I'd suggested was actually slightly different to the German model but kept the ownership and oversight of passenger services in the public sector. This was in acknowledgement of the fact that unlike Germany, the UK is a unitary state and in 1993, devolution had yet to happen. So what I'd envisaged was a more pragmatic evolution of the then existing BR structure to one of purchaser of services rather than direct provider.
The advantage as I see it is that it would have fulfilled the Conservative Party 1992 manifesto regarding privatisation (and accepts that some form of privatisation was invenitable). But would have kept BR in tact as an entity with responsibility for strategic planning and oversight. It would have also been far less fragmented.
As you say. The eu law that mandates all this, it requires all public train operations to be tendered to the private sector. Or to be run on a commercial (and profitable) basis as open access... and if they are not profitable, then they will go bust... or be subsidised, and thus tendered out. It is a one way road. And the open access allowed by the eu could lead to the something once profitable for the state, becoming loss making and needing subsidy (afterall, open access is about cherry picking the profits and not operating the services deemed social)
I agree that BR could have been kept as a form of network 'manager' or a 'guiding mind' in current language, or as your idea of exisiting for "planning and oversight"... but that doesn't undo the legal requirements of the eu laws, to separate train ops and infrastructure, and break up and tender the train operations. Saving BR doesn't save us from the mess and the rip off. But it may have saved some efficencies in planning, procurement and operations. But saving a bit of a rip off, still means you have been ripped off.
All train operating contracts issued in the eu, have a fixed term. They are contracts afterall. And the process is never ending. You say "it isn't a one way process". And it isn't. It is a never ending merry-go-round of expensive musical chairs. And a fragmentation that has cost us all huge amounts of money. A member state can pick what that length of the contract is, as long as it is within the length allowed by eu laws (which doesn't and probably never can match the working life of the assets. Think 20 year max franchise ordering trains with a 30-35 year working life.). And can choose what the detailed service provision, rolling stock criteria and small print is. The eu says you can do what you like, as long as it is within their law. And that's exactly what we got and why we got it. Other member states have implemented it with variations. But the principle is the same, because it complies with the same overall framework.
And how can you claim something is "more bottom up democratically accountable"... when the system that mandates this structure, has been imposed from an eu level, pretty much without the knowledge or consent of the electorate, and without any legal means to return to a vertically integrated structure (other than by leaving the eu as whole!).
While we can't blame the eu laws for the last labour government issuing franchises (like northern, london midland, cross country, midland mainline ect) that had a practically zero growth, rolling stock fleet procurement embedded within the franchise specification. But the fact that the train operations had to be broken up to begin with, means all effiencies and shared assets, were lost in the fragmentation of every individual part of the broken and fragmented structure now needing to make a profit (often from each other) to survive, much less succeed. Gave us all a fake 'profit/loss/subsidy figures, while the overall cost of the industry shot up, and buying in the services you say we still own, from the private sector, hasn't served to do anything other than enrich private equity at the expense of the taxpayer. And in my opinion, has distanced the public service from the public, by taking away their state owned service and replaced it with a never ending rotation of various operators, expensive and bureaucratic tendering processes and often resulting in nondescript and frankly unwanted and disposable brand names, to deliver what we already had, and deliver less than what the previous vertically integrated structure could have achieved, if it had the same amount of funding that goes into the mess we have today.