GERMANY’s federal states supported by rail passenger authorities are calling for a €14bn increase in regional funding for the 2026–2031 period to maintain current service levels. They point out that this was stipulated in the federal government’s coalition agreement. The call was made at the Conference of State Premiers on June 25.

“The financial situation in local passenger rail transport is more strained than ever,” says Peter Panitz, president of the Federal Association for Local Passenger Rail Transport (BSN). “The commissioning authorities cannot shoulder retroactive track access charge payments amounting to hundreds of millions of euros for 2025 and 2026, nor can they afford higher track access charges from 2027 onwards. We expect the federal government to assume responsibility here and offset the existing - and worsening - underfunding of local passenger rail transport."

BSN says financial and planning risks are high, given that existing transport contracts were concluded, and services planned accordingly, based on the track access charge cap that was in effect at the time. “Yesterday’s negotiations at the Federal Network Agency once again highlighted the urgent need to reform the track access pricing system,” BSN says.

“The sector cannot afford the charges resulting from the current full-cost recovery principle. The commissioning authorities are therefore calling for a system that establishes transparent, affordable, legally secure, and predictable track access charges, alongside the political will to fund local passenger rail transport as an essential public service. Otherwise, the authorities will be forced to review existing service offerings to avoid deficits.”

BSN points out that as recently as this spring, federal transport minister, Patrick Schnieder, said the country needs to demonstrate its capacity to act with regard to the railway network.

"There is no better time than now to prove this ability to take action,” Panitz says. “Given rising passenger numbers and increasing appeal, driven in part by the Deutschlandticket, service cuts would send the wrong signal - 2.75 billion passengers rely on regional passenger rail services every year."