A critical report by Germany’s Federal Audit Court (Bundesrechnungshof) has revealed a far more severe backlog in the maintenance and renewal of the nation’s rail network than previously acknowledged, raising serious questions about the government’s strategy for financing vital infrastructure. The 33-page report, presented to several parliamentary committees and detailed in “Tagesspiegel Background” estimates the total value of necessary repairs and replacements for infrastructure exceeding its operational lifespan at approximately €123 billion.
The audit court’s findings are particularly damning regarding the government’s handling of the “Performance and Financing Agreement” (LuFV), a framework through which the federal government provides funding to Deutsche Bahn (DB) for rail network maintenance. Despite acknowledging the LuFV’s ineffectiveness in achieving its stated goals of preservation and improvement, the Ministry of Transport is pushing for a third supplementary agreement, allocating an additional €19 billion in federal funds. The audit court argues this move represents a continuation of a flawed system, attributing the agreement to the network’s deteriorating condition.
Critics within the audit court have characterized the proposed supplemental agreement as “rushed” and detrimental to the interests of the federal government and, ultimately, the public. They allege it perpetuates a financially unsustainable approach without addressing the underlying issues within the current financing strategy. The report goes further, accusing the Ministry of Transport of relying increasingly on a special government fund to cover rail maintenance, diverting resources from potentially impactful investments. This practice is labelled “constitutionally risky” and demands a return to adherence with established legal frameworks.
Beyond the financial allocations, the audit court expressed concern regarding a steadily decreasing requirement for DB Infrago, a DB subsidiary, to contribute its own resources to rail projects. This diminished financial responsibility is seen as undermining the incentive for cost-effective decision-making and operational efficiency.
The auditors are now calling for a fundamental reassessment of the financing model before any further funds are released. They insist the supplemental agreement must demonstrably guarantee a substantial and effective upgrade of the rail network. The current situation, they warn, has created a “bottomless pit” for federal financing, demanding an immediate and comprehensive overhaul to ensure prudent management of public resources and the long-term viability of Germany’s vital rail infrastructure.