GERMAN INDUSTRY WARNS RAIL BUDGET CUTS PUT SUPPLY CHAINS AT RISK
A broad coalition of German industrial companies, trade unions and civil-society organisations has warned that planned cuts in Germany’s 2027 federal budget could further weaken the country’s already overstretched rail network and put industrial supply chains at risk.
According to joint coalition statement, the draft budget would reduce funding for the maintenance and expansion of the rail network by €1.3 billion. More than 90 rail projects are reportedly at risk, while around 30 projects remain only partially financed despite the availability of Germany’s special infrastructure fund.
The coalition, which includes ArcelorMittal, the German Trade Union Confederation, IG Metall, K+S, the German Chemical Industry Association and the German Steel Federation, stressed that an unreliable rail network directly affects logistics and energy-intensive industries such as steel, chemicals and basic materials. Delays, cancellations and insufficient capacity increase production and transport costs and make it more difficult to shift freight from road to rail.
Concerns were also raised over rising track-access charges and the future of single-wagonload transport. The coalition called for a structural reform of Germany’s track-access charging system and permanently lower charges for passenger and freight operators.
Official budget figures show that support for reducing rail freight track-access charges would fall from €265 million in 2026 to around €200 million in 2027. Funding from Germany’s special infrastructure fund for maintaining federal railway infrastructure would decline from €16.3 billion to approximately €11.5 billion.
The recent low-water situation on the Rhine has further highlighted the importance of adequate reserve capacity across the transport system. The coalition therefore called for broader dialogue with the German Transport Ministry on reliable and resilient rail, road and inland-waterway infrastructure.
The German Parliament will now examine the draft budget, with final adoption expected before the end of 2026.