Potential shortfall of billions in financing for highway development projects
The Federal Ministry of Transport is grappling with a significant funding shortfall, estimated at approximately 15 billion euros, for projects in motorways, federal roads, rail, and waterway traffic over the coming years. This crisis has raised concerns among state transport ministers and industry leaders, with several major autobahn and federal road projects in Germany, particularly in northern regions, facing delays or potential cancellation.
The railway sector is not immune to these funding issues, with insufficient funds available for new and expansion projects in the coming years, according to the ministry. The deficit in the federal long-distance roads department for the period 2026 to 2029 is around 15 billion euros.
Baden-Württemberg's Minister of Transport, Winfried Hermann (Greens), has expressed concern about sudden brakes being hit after long procedures and local agreements. Similarly, Hesse's Minister President, Boris Rhein (CDU), has called for an investment offensive in transport. Lower Saxony's Minister of Transport, Grant Hendrik Tonne (SPD), has criticized the federal government for lack of clarity in planning.
Part of the investment funds come from a special fund set up by the Bundestag, with 100 billion euros going to the states and 100 billion to the Climate and Transformation Fund for climate protection expenditures. The principle for the use of funds from the special fund is "Maintenance before new construction."
This year, Transport Minister Schnieder has 33.4 billion euros from the core budget and special funds for investments, including 10 billion for federal highways. However, the ministry still sees a need for an additional 5.5 billion euros for projects to expand and build new highways by 2029.
The projects in question are located in North Rhine-Westphalia, Bavaria, Hesse, Lower Saxony, Hamburg, Baden-Württemberg, Schleswig-Holstein, and Rhineland-Palatinate. Several major projects, such as the A20, A26, and A39, which are partly construction-ready but face cancellation, are among those affected. In Nordrhein-Westfalen alone, about 29 planned autobahn projects and nearly a dozen federal road projects will be put on hold, with no new projects starting and existing ones stretched out due to funding gaps.
The CEO of the main association of the German construction industry, Tim-Oliver Müller, has warned about delayed or cancelled construction projects leading to broken bridges, roads, closures, detours, and traffic jams. The delay threatens on the planned new line between Frankfurt and Mannheim, and Bavaria's Minister President, Markus Söder, has called for a significant increase in the transport budget.
There has been criticism from the Greens in the Bundestag about funds being shifted from the core budget into the special fund. Finance Minister Lars Klingbeil does not see the responsibility for the billion-euro budget with him, but with Transport Minister Schnieder.
State transport ministers have called on the federal government to ensure adequate funding for the expansion, maintenance, and renovation of federal transport infrastructure. The federal budget for 2026 will be discussed for the first time in the Bundestag next week and is scheduled to be decided by the end of November.
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