NGO calls for more funds for railway as German government agrees draft state budget for 2025

The transport and environmental association Verkehrsclub Deutschland (VCD) has criticised planned budget cuts for the maintenance and modernisation of Germany's railway system, as the government finally agreed its draft federal budget for 2025 after weeks of difficult negotiations. "Like in the previous year, railways will receive slightly more money than roads – but the sum is nowhere near enough in view of the backlog of modernisation and investment," VCD head Kerstin Haarmann said.

Today's cabinet agreement follows a deal by the leadership of the three-party coalition from early July, which was reached after months of intense negotiations that were complicated by a ruling of the country’s highest court late last year declaring billions of euros earmarked for climate and transformation projects unlawfully booked. In today's draft, the government is also considering changes to the key state budget vehicle for climate action by 2027 – the Climate and Transformation Fund. One option is scrapping the fund, instead financing measures directly from the core budget. NGO Greenpeace criticised the draft budget. "Despite daring accounting tricks, there are dangerous funding gaps in the budget for climate and the environment," said Greenpeace Germany head Martin Kaiser. "The Climate and Transformation Fund is urgently needed for ecological modernisation and the achievement of climate targets, but is dramatically underfunded."

The cabinet also agreed to amend the current 2024 budget, as more funds are needed for renewable energy support than initially expected. Germany will take on additional debt to finance this, but according to the draft it will still adhere to the debt limit rules.