Budget discrepancy jeopardizes highway projects' financial support
The German states are expressing concern over potential delays in highway and road construction projects due to financial problems at the federal level. Nordrhein-Westfalen, Bayern, Hessen, Niedersachsen, Hamburg, Baden-Württemberg, Schleswig-Holstein, and Rheinland-Pfalz are among the states voicing their concerns about possible standstill situations in road, rail, and waterway infrastructure.
The issue stems from a multi-billion euro funding gap and insufficient federal budget allocations for such projects through 2029. According to estimates, the deficit for federal highway funding from 2026 to 2029 is around 15 billion euros.
State Secretary Stefan Schnorr has stated that planned construction measures cannot be started or contracts cannot be awarded due to the financial issues. The states have urged the federal government to implement ready-to-go projects promptly.
The responsibility for how the money is spent in the transport sector now lies with Transport Minister Andreas Schnieder himself. However, the ministry estimates a shortfall of 5.5 billion euros for projects to expand and build new highways by 2029.
On the federal level, a large part of the money from the special fund will go into transport infrastructure, but mainly for renovation, with the principle being "Preservation before new construction." The federal government is investing more in the transport sector than in any other area, planning to invest 166 billion euros in transport infrastructure during this legislative period.
Several politicians from Lower Saxony, Hesse, Baden-Württemberg, and Bavaria have criticized the federal government for delays in transport infrastructure projects. Bavaria's Minister President Markus Söder has stated that the transport budget must be significantly increased, particularly for a new line between Bavaria and Baden-Württemberg.
The first discussion of the federal budget for 2026 will take place in the Bundestag next week and is scheduled to be decided by the end of November. Construction permits for 74 projects, expected to be granted by 2029, can only be issued if the budget for the coming years is increased.
There has been criticism from the Greens in the Bundestag about funds being shifted from the core budget into the special fund, which is used for expensive election gifts such as the expansion of the mother's pension or tax relief for the hospitality industry.
The special fund of 500 billion euros, set up by the Bundestag, will be used for infrastructure and climate protection investments over the next twelve years. Of the special fund, 100 billion euros will go to the states and 100 billion euros to the Climate and Transformation Fund for climate protection spending.
Tim-Oliver Müller, CEO of the main association of the German construction industry, stated that delayed or cancelled construction projects could lead to broken bridges, roads, closures, detours, and traffic jams. The states are hoping that the federal government will address these concerns and ensure that funds from the special fund are additionally available, and that the ministry's budget is not reduced.
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