The federal government wants to bring the ailing rail network into shape with billions in investments. But after a ruling by the Constitutional Court, an important source of the funds is in question. What now?
Signal boxes from the imperial era, missing overhead lines, overloaded routes – in order to make Germany’s rail network, which is ailing in many places, fit again, the federal government has announced investments of almost 40 billion euros for the coming years.
A significant portion of these funds should come from the federal government’s so-called Climate and Transformation Fund (KTF), a special fund that is economically separate from the core budget. But after a ruling by the Federal Constitutional Court this week, this pot is significantly smaller – and the search for alternative sources of financing has begun.
“The federal government must now quickly clarify how it intends to make the billions earmarked for rail infrastructure available elsewhere,” said the pro-rail alliance Allianz on Friday. Managing director Dirk Flege, for example, called for an end to numerous environmentally harmful subsidies that could then flow into the railways.
Requirement: Check company car and diesel privileges
“If the company car and diesel privilege were abolished and a tax on kerosene were also introduced, there would be additional billions for the projects that can no longer be financed through the climate and transformation fund,” he said.
The German Transport Club, which advocates for socially and environmentally friendly mobility, made a similar statement on Friday. “In the search for this money, environmentally harmful subsidies such as the company car and diesel privileges must be examined, as well as Mr. Wissing’s sprawling new and expansion motorway projects,” said railway policy association spokesman Alexander Kaas Elias.
Specifically, it is about 12.5 billion euros that should flow from the KTF for rail financing in the next few years. The fund has a total of 200 billion euros. Around 60 billion euros of this came from unused Corona loans, which the federal government subsequently reallocated for climate protection and the modernization of industry and put into the KTF. This is exactly what the Federal Constitutional Court banned this week. There is now a lack of 60 billion euros in the fund.
General renovation of busy routes
Important projects and plans in the Federal Ministry of Transport (BMDV) are also affected, the Federal Ministry of Transport (BMDV) announced recently. “This primarily includes funds for the renovation of the railway, but also for charging infrastructure or climate-friendly commercial vehicles.” How this gap should now be closed is “the subject of national consultations”.
The federal government promised almost 40 billion euros for the railway in the coming years in mid-September. In addition to the funds from the KTF, other sources were planned: 11.5 billion euros should continue to come from the BMDV’s individual federal budget plan. This will be financed primarily through an increase in the truck toll. A further 12.5 billion euros are to flow through an equity increase at the railway, and the group itself has to contribute three billion euros.
The group’s most important project in the coming years will be the general renovation of busy rail corridors, which is intended to improve the high level of unpunctuality in long-distance transport in the medium term. It starts next summer on the so-called Riedbahn between Frankfurt and Mannheim.
Source: Stern
