Looming threat of a repeat "hanging faction" for Germany ticket
The Germany Ticket, a popular public transport pass, has been a success story since its introduction in May 2023. However, the financial stability of the initiative remains a concern for many, particularly the managing director, Christian Schuchardt.
The combined contribution from the federal and state governments and ticket revenues have not been sufficient to cover the costs incurred by transport providers. This issue has been a recurring problem, with the Germany Ticket requiring at least 3.6 billion euros in compensation annually.
In response, the new federal government, in collaboration with the states, is expected to deliver a long-term financing model for the Germany Ticket. This model aims to stabilise and expand public transport by mobilising all available financial resources, including at the municipal level.
The plan involves empowering municipalities to secure new local funding sources, such as levies on car owners or local businesses, supported by a legal basis in state law. This could potentially generate additional revenue for public transport. Moreover, stronger financial support from federal and state governments is considered essential, given the tight budget situations of many municipalities.
The federal government is expected to take a leadership role by collaborating with federal states to develop a sustainable funding scenario and fairly distribute the financial burden. This approach builds on previous federal plans, including a “modernisation pact” to create attractive local public transport.
However, the federal cabinet's approved record debt budget does not include funds for the Germany Ticket in 2026. The federal funds for the Germany Ticket are not included in the draft budget for 2026 either. This has led to demands from the city council for a long-term financing model for the Germany Ticket.
The German City Council views the continuation of the Germany Ticket as at risk, with quick clarification of financing for the Germany Ticket in the coming year being necessary to secure its future. The representative of the municipalities has stated that the Germany Ticket is not secured for 2026.
In addition, the federal government does not intend to cover the additional costs for the Germany Ticket in 2026. Schuchardt has expressed concerns about the uncertainty caused by the current financing plan for 2026, likening the situation to another "hanging party" for the Germany Ticket.
Political figures, such as Klingbeil, demand discipline in saving, despite the federal cabinet's approved record debt budget. The states have also rejected increased expenditure for the Germany Ticket in 2026, as outlined by Schuchardt.
The federal cabinet is set to pass a resolution on this matter on Wednesday. The resolution is crucial in amending the Regionalization Act to secure the Germany Ticket for 2026. The proposed multi-level, coordinated funding approach aims for long-term stability and expansion of public transport services related to the Germany Ticket.
This approach also considers the introduction of socially inclusive fare options, such as discounted tickets for low-income individuals and families, to ensure the Germany Ticket remains accessible to all.
[1] This information is based on previous federal plans and the proposed multi-level, coordinated funding approach for the Germany Ticket.
- The new federally-proposed multi-level, coordinated funding approach for the Germany Ticket includes a comprehensive strategy to secure funding from various levels, including municipalities and the federal and state governments.
- Part of this approach seeks to empower municipalities to generate new local funding sources, such as levies on car owners or businesses, which could potentially cover a portion of the Germany Ticket's costs.
- The federal government is expected to collaborate with the states to develop a sustainable funding scenario, aiming for long-term stability and expansion of public transport services related to the Germany Ticket. This plan also includes socially inclusive fare options, offering discounted tickets for low-income individuals and families, promoting accessibility for all.
