Germany needs €150bn fund to revamp infrastructure, chairman says

An infrastructure fund of around €150 billion ($155 billion) is needed for the long-term financing of Germany’s ailing rail network, according to the chairman of the rail operator Deutsche Bahn’s supervisory board.

“The railways have problems and they have to improve. The infrastructure is too old, too full and too prone to disruption,” Werner Gatzer told Germany’s Focus magazine in comments published on Thursday.

“I think at least €150 billion will be needed for investments in infrastructure over the next 10 years,” he said.

Gatzer said the debts that the government would have to take on for this are manageable in view of the falling debt ratio, emphasizing that “the conditions must be created so that we can invest more quickly.”

In early 2024, Germany’s 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 hammered out.

Industry associations have also backed the idea of a fund. Given the far-reaching problems with the national rail infrastructure, they believe a long-term financial solution is needed that offers the industry security in order to increase capacity and reduce construction costs.