Roads, railways, waterways: Is Germany's infrastructure at risk of collapse despite record budgets?

What is the 2026 federal budget and what criticism is there of it?

### Record investments or scam? Why the new federal budget is causing controversy ### The €500 billion trick: How the government is secretly cutting infrastructure ### Billions from truck tolls: Why your money isn't getting where it's needed ###

The 2026 federal budget was introduced by the Federal Cabinet on July 30, 2025, and includes planned spending of €520.5 billion. The federal government is promising "record investments" in infrastructure and promoting the budget as a major step forward for Germany's modernization. But is this portrayal truly accurate, or is it more political marketing than substantial improvements?

This question is particularly concerning the logistics industry, which relies daily on a functioning transport infrastructure. The German Freight Forwarding and Logistics Association (DSLV) has a clear answer: The advertised "investment offensive" is more show than substance. What is behind this criticism, and what specific problems do experts see with the planned financing of Germany's transport infrastructure?

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Why is the investment offensive described as “more show than substance”?

The main criticism of the 2026 federal budget is directed at the way the federal government presents its transport investments. Frank Huster, CEO of the German Transport Association (DSLV), complains that the government is continuing a "course of reallocating funds" instead of genuinely increasing investments.

The central problem lies in the handling of the new special fund for infrastructure and climate neutrality (SVIK). This €500 billion special fund was originally conceived as an additional source of funding. Instead, it is apparently being used to offset cuts in the regular transport budget. The DSLV criticizes that the SVIK should have an "additive effect," not a "compensatory effect."

The figures support this criticism: While spending in Departmental Plan 12 for 2026 increases by only €243 million compared to the key figures from June, it "doesn't come close to the 2025 level." The problem is particularly evident for federal highways: Total spending in 2026 amounts to €15.17 billion, only slightly higher than the first government draft for 2025 – even though the special infrastructure fund didn't yet exist at that time.

What is the Infrastructure and Climate Neutrality Special Fund and how does it work?

The Special Fund for Infrastructure and Climate Neutrality (SVIK) is a €500 billion, credit-financed investment program approved by the Bundestag and Bundesrat in March 2025. It is designed to run for twelve years and is intended to enable additional investments in various infrastructure sectors.

The 500 billion euros are divided as follows: 300 billion euros are available to the federal government for its own investments, 100 billion euros are earmarked for states and municipalities, and another 100 billion euros will flow into the Climate and Transformation Fund. 21.3 billion euros from the special fund are planned for transport infrastructure in 2026.

The SVIK is intended to finance investments in seven areas: transport infrastructure, energy infrastructure, hospital infrastructure, education, care, and science infrastructure, research and development, digitalization, and civil and public protection. The constitutionally mandated "additionality" of investments is considered fulfilled if investment expenditures in the federal budget amount to at least ten percent of adjusted total expenditures.

How is the truck toll used to finance infrastructure?

The truck toll plays a central role in German transport financing and is also a point of contention between various interest groups. A CO₂ surcharge of €200 per ton of CO₂ has been introduced since December 1, 2023, roughly doubling the toll rates. In addition, the toll obligation was extended to trucks weighing more than 3.5 tons as of July 1, 2024.

In 2024, the federal government generated revenue of approximately €12.96 billion from the truck toll. However, this revenue is not used exclusively for roads: Approximately €7.78 billion went into the planning, construction, maintenance, and operation of federal highways, while €5.95 billion was used as construction cost subsidies for railways. Only €160 million went to federal waterways.

For 2026, the federal government plans to collect six billion euros from the CO₂ surcharge on truck tolls. According to criticism from the German Transport Association (DSLV), this money could be used to finance the transformation of road freight transport, the "largest CO₂ emitter in land transport." Instead, a significant portion of the toll revenue – a total of 3.13 billion euros – is flowing into other modes of transport, leaving funds unused for the renovation of federal highways.

Why is the road financing cycle seen as a problem?

The so-called "Road Financing Cycle" was a system in which revenue from truck tolls was earmarked for road investments. This system was introduced in 2011 and was intended to establish a form of user financing. By 2019, truck tolls covered approximately 90 to 96 percent of federal highway investments.

However, the 2023 toll reform broke this financing cycle. The traffic light coalition government introduced the "Transport Finances Transport" concept, under which a large portion of the additional toll revenues flow into rail. In 2024, this made it possible for the first time to use €6 billion from truck tolls to renovate the rail network.

The German Transport Association (DSLV) and other associations strongly criticize this development. They argue that the road financing cycle will not be closed in 2026, despite the commitment in the coalition agreement. This leads to structural underfunding of the road infrastructure, even though truck drivers contribute directly to its financing through tolls. The new grand coalition of the CDU/CSU and SPD announced in the coalition agreement that it will reintroduce financing cycles with revenue-linked revenue for the respective modes of transport.

What problems are there with the federal waterways?

Federal waterways represent a particularly problematic case in German transport infrastructure financing. They are the "only transport routes without access to the SVIK," and their investments are "largely financed by revenues from truck tolls." This leads to structural underfunding of this mode of transport.

The financial requirement for necessary investments in the maintenance and expansion of federal waterways alone is estimated at approximately €1.1 billion annually. When the costs for implementing the "Concept for Fish Waterway Permeability" and eliminating the maintenance backlog are added, the realistic requirement rises to €1.3 billion per year.

The inadequate funding has concrete consequences: The Kiel Canal has already had to be temporarily closed to large ships due to inadequate repairs, resulting in detours with additional costs averaging €70,000 per trip. Without reliable funding for the waterways, the risk of bottlenecks and total outages increases, warns the DSLV.

Why is the reduction in track access price subsidies being criticized?

A particularly controversial point in the 2026 federal budget is the planned reduction of track access charges for rail freight transport from €275 million to €265 million. This reduction comes at a time when track access charges – the fees that railway companies must pay for using the railways – are rising sharply.

In December 2024, track access charges for a standard freight train on the federal network already rose by around 16 percent. A further increase of 8 to 35 percent is possible for December 2025, depending on the outcome of ongoing legal disputes. The VDV estimates the actual need for track access charge subsidies at at least €350 million annually.

Although the German government has attempted to dampen the price increase by lowering the interest rate on equity for DB InfraGO from 5.2 to 2.2 percent, this has only resulted in track access prices "increasing less sharply." The underlying problem remains.

It seems paradoxical that at the same time, the track access fee subsidy for long-distance rail passenger transport is to be almost doubled from €105 million to €200 million. The VDV criticizes this unequal treatment as "incomprehensible," since rail transport should be viewed as a holistic system.

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How large is the renovation backlog in Germany?

The backlog of German transport infrastructure is considerable and has worsened in recent years. Currently, 7,112 kilometers of motorways are classified as requiring repairs – an increase of 1,315 kilometers compared to the 2017/18 survey. This corresponds to approximately 12 percent of the entire motorway network.

The situation is even more dramatic on federal highways: 13,600 kilometers, or 33 percent of all federal highway kilometers, are in need of repair. In total, almost 25,000 kilometers of road surfaces on German highways are damaged.

The condition of the bridges is particularly alarming. While the Ministry of Transport estimates that 4,000 motorway bridges will need to be renovated over the next ten years, the environmental organization Transport & Environment estimates significantly higher figures: 5,905 bridges need to be replaced, and another 10,240 are so heavily damaged that they will likely require replacement. In total, approximately 8,000 motorway bridges and 3,000 federal road bridges are classified as requiring renovation.

The rail network is also experiencing massive problems: 17,636 kilometers of track are in need of renovation, corresponding to approximately 28 to 29 percent of the total track stock. The number of railway bridges that need to be replaced with new ones rose from 1,089 to 1,160.

What are the financial dimensions of infrastructure rehabilitation?

The costs for the necessary renovation of Germany's transport infrastructure are astronomical. According to calculations by Transport & Environment, up to 100 billion euros will be required at the federal, state, and municipal levels just to replace bridges.

As early as 2013, the Commission on the Future of Transport Infrastructure Financing estimated the additional annual expenditure for the maintenance of existing infrastructure at €7.2 billion, of which €5.3 billion was for the road network alone. Since these amounts have not been met for over a decade, the backlog of renovations has continuously increased.

Deutsche Bahn is planning a renovation program for its rail network by 2030, with an estimated cost of at least 45 billion euros. In 2024 alone, 16.4 billion euros will be spent on renewing 2,000 kilometers of track, 2,000 switches, and numerous stations and bridges.

The annual financial requirement for federal waterways is realistically €1.3 billion. Over the entire twelve-year term of the SVIK, the federal government plans transport investments of €166 billion, of which €107 billion will be for rail, €52 billion for federal roads, and €8 billion for waterways.

What happens if the infrastructure is not adequately renovated?

The consequences of inadequate infrastructure renovation are already visible today and will worsen dramatically without decisive action. Selective closures of motorway sections for heavy trucks, such as those already occurring on the A1 near Leverkusen, demonstrate that the functionality of the infrastructure is already at risk.

A particularly dramatic example was the Carola Bridge in Dresden, which partially collapsed into the Elbe River in September 2024. The Ringbahn Bridge on the A100 in Berlin also had to be completely demolished and rebuilt due to a crack in its structure. Such scenarios could become more frequent without sufficient investment.

The economic impact is significant: If investments in dilapidated bridges and roads aren't made, the final price is higher – both economically and socially. Contracts awarded to private companies already show that delayed renovations have no price-reducing effect and that the prices can be set by the providers.

For the logistics industry, continued deterioration of infrastructure means significant additional costs and planning uncertainty. The German Logistics Association (DSLV) warns that crumbling transport routes are making Germany "increasingly unstable and less attractive for industry and trade" as a business location. The deterioration of Germany's infrastructure has long been viewed with concern in neighboring EU countries.

What solutions are proposed?

Various approaches to tackling the infrastructure crisis are being discussed. The DSLV is calling for a more stable and sustainable financing architecture that must be "planned over several years." This means that investment commitments should be predictable and reliable over several years.

A key point is the restoration of closed financing cycles. The ZDK (Confederation of German Transport and Digital Infrastructure) is calling for "consistent earmarking of truck toll revenues for the maintenance and expansion of road infrastructure." The new grand coalition has announced corresponding financing cycles with revenue earmarked for the respective modes of transport in the coalition agreement.

For the railways, the proposal calls for the establishment of a rail infrastructure fund, as already envisaged in the original coalition agreement. Such a fund could enable long-term, multi-year investment commitments and thus prevent inflationary effects in the construction industry.

Experts are calling for a fundamental reform of waterway financing. The SPD parliamentary group has developed a concept intended to facilitate additional investments in transport infrastructure ("Transport Routes: Solidly Financed – Efficiently Managed").

The industry emphasizes that public investments must meet certain requirements: They should encourage private investment, create a structural framework, and be strategically aligned with future challenges. Short-term political considerations should not be the primary consideration in prioritizing.

Is the 2026 federal budget really a breakthrough?

An analysis of the 2026 federal budget draft and the criticism it has drawn paints a mixed picture. On the one hand, the federal government is indeed planning significant investments in transport infrastructure – the talk of "record investments" is not entirely unfounded. With €33.7 billion for transport investments and the €500 billion special fund, considerable financial resources will be mobilized.

On the other hand, the logistics industry's criticisms cannot be dismissed. The accusations of "reallocation of funds" instead of genuine increases, the structural underfunding of waterways, and the problematic cuts in infrastructure access charges reveal systematic weaknesses in the financing architecture.

Particularly problematic is the lack of planning security and sustainability of the financing. If the SVIK is used primarily to fill gaps in the regular budget rather than to enable additional investments, it misses its intended purpose. The lack of a breakthrough in a stable, multi-year financing architecture could prove to be the greatest shortcoming.

The immense backlog of nearly 25,000 kilometers of damaged highways, over 16,000 dilapidated bridges, and 17,636 kilometers of railway lines in need of renovation makes it clear that Germany faces a mammoth infrastructure challenge. The planned investments may be record-breaking, but given the decades-long backlog of renovations, they may not be sufficient to halt the deterioration.

Ultimately, the success of the 2026 federal budget proposal will not be measured by the promised sums, but rather by whether it succeeds in establishing reliable and adequate financing for all modes of transport. Only if the structural problems in the financing architecture are resolved can Germany make its infrastructure fit for the future and remain competitive as a business location.

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