Events after the balance sheet date
First general modernization has begun
On July 15, 2024, the general modernization of the Riedbahn started as planned. This is the pilot project for moving toward a high-performance network and one of the most important construction projects in 2024. The general modernization will see the first implementation of a new modernization and overhaul plan, with the target of completely modernizing the line by mid-December 2024, i.e. within five months. The Federal Government has already made all the necessary arrangements – both legal and financial – for this to be achieved.
Government draft for the 2025 Federal budget
On July 17, 2024, the Federal Government adopted the draft for the 2025 Federal budget and financial plan up to 2028. The accompanying letter states that investment is a clear priority for the Federal Government. The Federal Government, it says, is investing “in areas that are particularly relevant to citizens and the economy: railways, roads, local transport and digital infrastructure.” It goes on to say that within rail, investment will focus on upgrading the highly utilized network and the general modernization of the high-performance corridors.
Specifically, funds amounting to € 15.3 billion will be made available for the Federal rail infrastructure in 2025. This corresponds to an increase of about € 6 billion compared to 2024. When comparing with 2024 (decrease of € 1.1 billion), it should be noted that the 2024 funds were partially allocated to reimburse the pre-financings that DB Group made into the existing network in 2023. Allocations are expected to increase compared with 2024 for the equity increase (€ +0.4 billion to € 5.9 billion), the requirement plan (€ +0.5 billion to € 2.2 billion), the ERTMS (€ +0.3 billion to € 1.4 billion), attractive stations (€ +168 million to € 265 million) and small/medium-sized measures (€ +195 million to € 303 million). Funds from the equity increase will also be used for the existing network. Including these funds, up to € 10.4 billion could be available for the existing network in 2025 (in 2024: € 11.8 billion including € 2.3 billion to reimburse for pre-financings).
The Government draft for the 2025 Federal budget and the information available to date on the financial plan do not yet fully cover the additional requirements identified for the rail network until 2028.
Expenditures of € 0.8 billion are planned for rail transport support issues. This represents an increase of € 0.2 billion compared to 2024. Among other things, there will be increases in train-path price support for long-distance (€ +105 million to € 105 million) and freight transport (€ +46 million to € 275 million). The purpose of this increase is to partially cushion the negative impacts of price increases from the 2025 train-path pricing system. Single wagon transport support will continue at the level of 2024 (€ 300 million), while the facility price support will increase by € 15 million to € 35 million.
The first stage of the parliamentary procedure is scheduled from September 10 to 13, 2024, with the first reading in the German Parliament. The committees will then consult on the draft. The second and third readings, culminating in the ratification of the 2025 Federal budget, are scheduled for the end of November 2024. The final passage of the budget in the Upper House of Parliament (Bundesrat) is scheduled for December 20, 2024.