EVG demands commitment for billion-euro railroad renovation
The ailing rail network was to be made fit with around 40 billion euros over the next few years. The debt brake ruling from Karlsruhe is now causing delays in operations. Following a budget freeze by the Ministry of Finance, the EVG is warning the federal government not to call off the refurbishment.
The German Railway and Transport Union (EVG) has called on the federal government to secure investments worth billions in the rail infrastructure despite the ruling from Karlsruhe. "Without these investments, the general overhaul is on the brink of collapse," EVG Chairman Martin Burkert told the Frankfurter Allgemeine Zeitung. The rail refurbishment that has already been announced must come, otherwise "there is a threat of collapse in terms of transport and climate policy", the trade unionist told the newspaper.
Green transport politician Matthias Gastel also recalled that the traffic light coalition had set out to provide reliable, long-term and adequate funding for the rail infrastructure. "We now need clarity that the necessary investments in a disruption-free and efficient rail network can be tackled as planned," Gastel told the newspaper.
Economists see equity increase as a way out
Following the Federal Constitutional Court's landmark ruling on the debt brake, Federal Finance Minister Christian Lindner put all financial commitments to Deutsche Bahn to the test. This involves a total of almost 40 billion euros over the next four years. Of this, 12.5 billion euros were to come from the climate and transformation fund, which was declared unconstitutional. According to the FAZ, a significant proportion of this was to be paid for via equity increases, which are now also being blocked by the Federal Ministry of Finance. In light of the ruling, all effects on the federal budget are currently being reviewed, according to a report from the ministry.
Constitutional experts and economists consider this part to be legally unproblematic. Heidelberg constitutional law professor Hanno Kube, who fought for the ruling for the CDU/CSU in Karlsruhe, explained to the FAZ that an increase in equity as a financial transaction has no impact on the debt brake. After all, the state receives something for the money it invests in the rail network, he emphasized. Lindner's chief economist Lars Feld also confirmed to the FAZ that the billions for the urgently needed rail renovation could be raised via an equity increase.
Deutsche Bahn had previously pointed out the urgency of the matter. In the climate and transformation fund that has now been closed, four billion euros were planned for the rail infrastructure for the coming year alone, and 12.5 billion euros by 2027. If the financing is not clarified, "the goals of shifting traffic to rail cannot be achieved under any circumstances," a Deutsche Bahn spokesperson told Redaktionsnetzwerk Deutschland on Friday.
- The Federal Constitutional Court's ruling on the debt brake has led to a review of all financial commitments to German Railways, including potential equity increases to fund infrastructure investments worth nearly 40 billion euros over four years.
- Despite the challenges posed by the Federal Constitutional Court's decision, Christian Lindner, the Federal Finance Minister, and Lars Feld, his chief economist, have suggested that equity increases can provide a legal and financially viable solution for raising funds for the urgently needed rail renovation.3.Christian Lindner's proposal of utilizing equity increases to fund rail infrastructure investments has garnered support from constitutional experts, such as Heidelberg constitutional law professor Hanno Kube, who argued that this would not violate the debt brake as the state would be receiving something in return for its investment.
Source: www.ntv.de
