Questions and answers: Will there be a solution to the financial dispute over the D-Ticket?

Questions and answers: Will there be a solution to the financial dispute over the D-Ticket?

Actually, everyone thinks that the new ticket for nationwide local transport, which was launched in May, is a success. But there are ongoing disputes about financing. Are the federal and state governments now in agreement?

With the Germany ticket there is a problem with money – again. Millions of passengers now use the 49 euro subscription, which is valid for buses and trains throughout the country, without complicated tariff zones and cheaper than usual monthly tickets.

But as groundbreaking as the nationwide offer for the otherwise regionally based local public transport (ÖPNV) is, there is constant wrangling over financing between the federal and state governments. The states and transport industry are now putting renewed pressure on the federal government.

“If the federal government does not give up its blockade stance regarding further financing, then with the Deutschlandticket we will soon no longer be talking about a historic moment, but rather about a missed opportunity,” said the general manager of the Association of Transport Companies, Oliver Wolff, to the German Press Agency. However, planned talks between Chancellor Olaf Scholz (SPD) and the Prime Minister were delayed because the states initially discussed several topics among themselves.

What exactly is it about?

The states are demanding additional guarantees from Berlin to continue to cover the D-Ticket even if the costs are potentially higher. According to an agreement at the end of 2022, it is clear that the federal and state governments will each contribute 1.5 billion euros this year and next year to compensate for loss of income for transport companies due to the cheaper ticket. The sticking point, however, is any additional costs beyond this. It has only been agreed that the federal and state governments will each pay half for the introductory year of 2023. The countries also want it for 2024.

What do the countries want?

In the dispute over the future of the Deutschlandticket, the states have committed to continuing the offer, but are demanding a signal from the federal government about further joint financing. The ticket is a successful model and we want to continue it, said the chairman of the Prime Minister’s Conference, Boris Rhein (CDU) from Hesse, after discussions with the states in Berlin. “But we now have to send a signal to the transport associations.”

Lower Saxony’s Prime Minister Stephan Weil (SPD) explained that, according to the states’ idea – if the federal government participates – funds not used this year could be transferred. This creates the basis for the ticket to continue next year. “The transport ministers have to tell us whether and in what form this will have an impact on pricing.” In the evening, the states want to discuss this with Chancellor Olaf Scholz (SPD).

What does the federal government say?

The federal government refers to the agreements that have already been made and is dampening expectations. Government spokesman Steffen Hebestreit made it clear that “as midwife” of the ticket, they had agreed to share additional costs on a one-off basis. Given the budgetary conditions of the federal government, he believes it is “not entirely uncomplicated” to now perpetuate this. Transport Minister Volker Wissing (FDP) points out that there are no precise calculations of additional costs yet. Only after the full next year can one actually assess the need. The federal and state governments therefore plan not to discuss further financing until the end of 2024.

What about the additional costs?

There is already a forecast from the Association of Transport Companies. Accordingly, the losses for the industry this year are likely to be 2.3 billion euros due to the ticket launch only in May, and then 4.1 billion euros for the full year 2024. With two times three billion euros in public subsidies for 2023 and 2024, the bottom line would be a financing gap of 400 million euros.

Are there signals of compromise?

It is clear that the countries want to put their ideas on the table, but in addition to other wishes, in particular regarding the urgent financing of refugee costs. Lower Saxony’s Prime Minister Stephan Weil (SPD) was already optimistic: “We would have to reach an agreement for 2024. It would be enough to transfer the remaining funds into next year,” he told the German Press Agency.

For the years from 2025, Weil also expects a signal to share the additional costs in half. The Green Party leader Ricarda Lang also called for compromises: “Ending this successful project would simply not be possible and would cost a lot of trust. The federal and state governments are therefore asked to work together to find a solution for future financing; everyone has to do their part “, she told the dpa.

And what happens to the ticket now?

Warnings have already come from the countries that the offer would end. Without a quick commitment from the federal government, the continuation from 2024 would be “seriously at risk,” warned the Conference of Transport Ministers at the end of September. Bus and train providers need planning security in order to continue offering their services. A financing response to higher costs could in principle also be a price increase in 2024. Because the 49 euros per month is expressly the “introductory price”. But that wouldn’t be popular. The consumer advice centers have already warned that an increase just six months after the introduction would be “unacceptable”.

Source: Stern

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