Warning of funding backlog in the railway sector – Threat of a standstill at the terminal station
Eulerpool Research Systems •Mar 24, 2024
The alarming signals from the rail infrastructure sector show no signs of ceasing. Michael Theurer, the Federal Government’s Rail Commissioner, has recently sounded the alarm over potential bottlenecks in financing the upcoming major renovations. In an interview with 'Tagesspiegel', he expressed his concerns, of which at least every daily train commuter can relate: The maintenance deficit in the German rail network is evident and calls for action, not delay tactics. Yet, paradoxically, the essential law for rail financing lost momentum on Friday in the Federal Council and did not stop at the station of approval.
Meanwhile, the thought train at the Ministry of Transport circles around alternative financing possibilities, so as not to remove the monetary foundation from the impending transportation transition. An infrastructure fund, which is intended to go beyond rail tracks and include roads and waterways in the investment scope, is being considered. According to 'Süddeutsche Zeitung', Transport Minister Volker Wissing already favors the idea of such a fund, thus opening the doors for private investment in infrastructure.
The Ministry's sotto voce hope: There may be enough arguments to continue convincing Parliament of the urgency for infrastructure investments, without relying on external sources of money. However, clear statements on possible financing routes have not been provided by the Ministry.
Meanwhile, the coalition partners SPD, Greens, and FDP find themselves on a precarious track: The Federal Rail Network Expansion Act, which was supposed to ensure federal financial support for maintenance and renovation, is in jeopardy. The final switch setting in the form of the mediation committee was initiated following the Federal Council session. There is consensus that a delay in modernizing the high-performance network would be detrimental to Germany as a business location.
Dark clouds, however, are unmistakable: Although the government pompously threw 40 billion euros into the ring for the revitalization of the rail network, the budget curtain was quickly drawn due to a deficit. The railway landscape must now be content with a reduced forecast of about 30 billion euros until 2027, while it itself significantly exceeds the requirement, estimating it at 45 billion.
Will the new construction and expansion projects be shunted onto a siding while restoration takes priority? The debate is picking up speed, but the train of decisions should not be overshadowed, for on the horizon looms the tunnel of underfunding.
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