Long-term financing of Germany’s ailing rail network requires an infrastructure fund of around €150 billion, according to the chairman of the supervisory board of railway company Deutsche Bahn.
“The railways have problems and need to be improved. The infrastructure is too old, too full and too sensitive to disruptions,” Werner Gatzer told the German magazine Focus in a commentary published on Thursday.
“I think at least 150 billion euros will be needed for investments over the next ten years,” he said.
Gatzer said the debt the government would have to take on is manageable given the declining debt ratio, stressing that “conditions must be created so that we can invest more quickly.”
In early 2024, German Transport Minister Volker Wissing proposed an infrastructure fund, in which private investors would also participate, to finance infrastructure in the country. However, the specific details have not yet been worked out.
Trade associations have also supported the idea of a fund. Given the far-reaching problems with the nation’s rail infrastructure, they believe a long-term financial solution is needed that provides certainty for the industry to increase capacity and reduce construction costs.
