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Germany’s Rail Spending Surges to Record Highs as 2027 Funding Gaps Loom

Financing gaps from 2027 threaten Germany’s bid to catch up with its neighbors

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Bauarbeiter vermessen eine Schiene auf einer Bahnstrecke
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Overview

  • Federal per-capita rail investment climbed 75 percent in 2024 to nearly €200, marking an all-time high.
  • A debt-financed special fund will allocate more than €100 billion to rail infrastructure projects through 2029.
  • Deutsche Bahn CEO Richard Lutz warns that funding shortfalls are expected to begin emerging in 2027 despite the new allocations.
  • Industry leaders urge the creation of a dedicated multi-year rail infrastructure fund with clear performance targets to secure long-term financing.
  • Germany still trails Austria and Switzerland in network performance and digital upgrades lag behind Italy’s pace.