German Rail Network Faces €123 Billion Repair Backlog
Economy / Finance

German Rail Network Faces €123 Billion Repair Backlog

A critical audit report released by Germany’s Federal Audit Court has revealed a significantly larger maintenance backlog affecting the nation’s rail network than previously acknowledged, sparking intense political scrutiny and raising questions about the efficacy of current funding mechanisms. The report, delivered to several Bundestag committees and detailed by “Tagesspiegel Background” estimates the total replacement value of aged infrastructure exceeding its technical lifespan to be approximately €123 billion.

The audit court’s assessment extends beyond mere cost estimations, directly criticizing the state’s approach to financing rail infrastructure upkeep. Specific condemnation is levied against a planned amendment to the “Performance and Financing Agreement” (LuFV), currently awaiting approval from the budget committee. This agreement dictates the flow of federal funds to Deutsche Bahn (DB) for network maintenance. Despite the LuFV being deemed “unsuitable” for effectively preserving and enhancing the rail network, the Federal Ministry of Transport intends to bolster it with an additional €19 billion through the third amendment.

The report highlights a deeply concerning cycle wherein the very system intended to improve rail conditions appears to have contributed to their deterioration. By proposing an expedited amendment granting DB billions for 2025 and 2026 without fundamental changes to the financing structure, the Ministry risks perpetuating a flawed system, a move auditors label as disadvantageous for the federal government and the general public.

Furthermore, the audit court expressed concern regarding the government’s lack of robust oversight regarding the utilization of allocated funds. A reduction in DB Infrago’s contribution to rail projects is also flagged, diminishing the impetus for economically sound operational decisions.

The auditors urgently demand a comprehensive review of guidelines before any further funds are released, insisting that additional subsidies must demonstrably translate into tangible improvements to the rail infrastructure. They warn that the current system has morphed into “a bottomless pit” for federal funding, hindering long-term sustainable investment.

The escalating reliance on a special fund to finance rail maintenance, instead of stimulating additional investment opportunities, has also drawn considerable criticism. This practice, according to the Federal Audit Court, carries “constitutionally risky” implications and necessitates strict adherence to prevailing legal frameworks. This concerning trend highlights a potential shift away from strategic infrastructure investment and raises serious questions regarding the long-term viability and taxpayer burden of Germany’s rail network.