German Government Boosts 2027 Rail Investment to €2.2 billion

The German federal cabinet proposed raising the budget for new and expanded railway projects from €1.8 billion in 2026 to €2.2 billion in 2027, the highest level ever. The increase is part of the Finance Ministry’s draft budget for 2027 and aims to meet rising demands on rail infrastructure. While most of the financing for the railway will continue to flow from a debt‑financed special fund focused on renovating existing lines, the new allocation targets expansion and new construction.

The private freight‑rail association welcomed the higher investment but criticised a simultaneous cut to the track‑price subsidy, which would fall from €345 million this year to €200 million in 2027. Neele Wesseln, managing director of the association, warned that “reducing these funds will raise the cost of rail freight and encourage a shift back to trucks.”