The simmering dispute between the federal government and Germany’s regional states over chronic funding shortages for motorway construction has escalated, despite a recent injection of €3 billion agreed upon by the ruling coalition’s leaders. A letter, revealed in the Frankfurter Allgemeine Zeitung, addressed to federal Chancellor Friedrich Merz (CDU), underscores the growing frustration amongst northern state governors and demands a more robust commitment to securing federal funding directly from the core government budget for several strategically vital transport infrastructure projects.
The leaders of SPD-governed states – Bremen, Hamburg, Lower Saxony and Mecklenburg-Vorpommern – alongside the CDU-led Schleswig-Holstein, are urgently advocating for dependable financing and accelerated implementation of crucial projects including the A20 coastal motorway, the A14, the A39, as well as key rail and waterway infrastructure upgrades. The continued development of the A20 is specifically highlighted as a “key project” essential for connecting north-south motorways and alleviating congestion around the crucial transport hub of Hamburg.
The coastal states are emphasizing the indispensable role of their seaports, which rely on a strong transport network for their economic viability. They argue that such connectivity isn’t merely vital for global trade, but also for Germany’s energy security and overall national safety. The A20, they contend, “strengthens trade, industry and tourism in northern Germany and enhances the economic competitiveness of the entire nation”. The leaders assert it’s “unacceptable and beyond reconciliation” that major motorway projects should stagnate while the federal government initiates multi-billion Euro infrastructure investment programs elsewhere.
Lower Saxony’s Minister-President, Christian Lies (SPD), voiced his concerns even more directly, stating that increased investment is now critically needed in the northern regions.
The renewed tension is fuelled by lingering resentment over the period between 2009 and 2021, during which the federal Transport Ministry was consistently held by the CSU. Accusations of the CSU diverting billions of Euros in investment to Bavaria have surfaced once more, undermining the fragile reconciliation hoped for after an agreement reached earlier this month.
Previously, the federal Transport Ministry had publicly acknowledged a funding shortfall of €15 billion – despite the availability of a special debt allowance of €500 billion – required to adequately address the deteriorating condition of federal roads and realize the construction of all ready-to-build motorway projects. Following protests from state governments, Federal Finance Minister Lars Klingbeil (SPD) conceded to reallocate €3 billion. Klingbeil and Merz simultaneously pledged that all “shovel-ready” projects would proceed, a promise now appearing increasingly precarious.
The government is exploring options including enabling the Autobahn GmbH to secure loans and expanding cooperation with private investors through Public-Private Partnership (PPP) projects. However, these measures do little to mitigate the persisting multi-billion Euro deficit, particularly concerning the costly maintenance of existing federal roads.
“Our concern is that already initiated transport projects are implemented and don’t end up in a waiting loop due to financial difficulties” stated Bremen’s Mayor and newly elected Federal Council President, Andreas Bovenschulte (SPD). He concluded that the necessary funding is available, framing the issue as one of political will.