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2mo ago

84% of German Firms Report Transport Deficits Hurting Business, IW Finds

IW questions whether the €500 billion infrastructure fund will add new spending.

Neubau einer Autobahnbrücke über den Rhein.
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Blick auf ein Verkehrsschild vor der Ziegelgrabenbrücke. Die Ziegelgrabenbrücke zur Insel Dänholm ist derzeit nur mit 10 km/h befahrbar, um Erschütterungen zu vermeiden
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Overview

  • An IW survey of nearly 1,100 companies shows a rise from 60% in 2013 to 84% now, up about five points since 2022.
  • Roads are flagged by 77% of all firms and 92% of affected firms, while rail is cited by 60% overall and 71% of affected firms as a location problem.
  • Small companies report the steepest deterioration in operating conditions linked to transport infrastructure.
  • Extensive renovations and slow planning are associated with detours and higher outage risks that inflate immediate business costs.
  • IW notes roughly €10 billion from the transport ministry’s core budget was shifted into the special fund, raising doubts about promised additionality.