States in Germany express concern over a billion-dollar shortfall in highway financing
The German government is grappling with significant financing gaps in its core budget, particularly for transportation projects, from 2027 onwards. These gaps have sparked concerns and calls for action from various state leaders and ministers.
One of the key figures in the transportation sector, Federal Minister of Transport Patrick Schnieder (CDU), has been advocating for increased funds in the transport budget of the core budget, but has yet to secure success. His efforts come as several German states, such as Brandenburg and regions in the Lausitz area, are seeking additional funds for infrastructure projects, including the expansion and new construction of federal highways.
Brandenburg has received around 296 million euros from the structural strengthening law for 16 large-scale projects in Lausitz. The federal government has also allocated significant funds for bridge and road surface renovations nationwide, with 1.1 billion euros freed up for these measures. However, specific new requests for expansion beyond these funds vary by state.
Bavaria's Minister President Markus Söder is particularly concerned about a new line between Bavaria and Baden-Württemberg and has called for a significant increase in the transport budget. Construction permits for 74 projects, expected by 2029, can only be granted if budget estimates for the coming years are increased.
The financing of these projects depends on the federal budget 2026, currently in parliamentary procedure. Lower Saxony's Transport Minister Grant Hendrik Tonne (SPD) has criticized the federal government for lack of clarity in planning.
The states have demanded that the federal government ensure that additional funds from the special fund for transport infrastructure are available, and that the budget funds of the transport department in the core budget are not reduced. Hesse's Minister-President Boris Rhein (CDU) has called for an investment offensive in transport to prevent a potential traffic collapse in the coming years.
A paper warns of possible consequences, such as a noticeable, short-term deterioration in road conditions, leading to traffic restrictions. This concern is further highlighted by the deficit for federal highways from 2026 to 2029, which is approximately 15 billion euros.
The German Bundestag has decided to implement a debt-financed special fund for infrastructure and climate protection worth 500 billion euros over 12 years. However, not all funds from the special fund for transport infrastructure are fully spent, leading to discussions about how to allocate these resources effectively.
There has been criticism from the Greens in the Bundestag of "shunting yards", where funds from the core budget are shifted into the special fund to finance expensive election gifts. The projects include the A20 in the north, the A1 in North Rhine-Westphalia and Rhineland-Palatinate, and the A39 in Lower Saxony, among others.
In conclusion, the financing of transportation projects in Germany is a complex issue, with funds coming from the individual plan for transport in the core budget, the individual plan for defense, and the Climate and Transformation Fund. The German government and various state leaders are working to address these funding gaps and ensure the continued development and maintenance of the country's transportation infrastructure.
