Disagreement in Germany over new road funding plans

There is major disagreement in Germany over plans for a new approach to financing road development proposed by the government. The authorities in the states are objecting to the government proposal to open a road fund, which will be responsible for building and maintaining the major routes roads and which would be able to award contracts to private companies. The federal states currently have responsibility for the road-building work with, funding coming from central sources and they do not want to lose inf
February 24, 2016 Read time: 2 mins
Significant investment is required for Germany’s Autobahn network so as to upgrade existing routes and add much-needed capacity
There is major disagreement in Germany over plans for a new approach to financing road development proposed by the government. The authorities in the states are objecting to the government proposal to open a road fund, which will be responsible for building and maintaining the major routes roads and which would be able to award contracts to private companies. The federal states currently have responsibility for the road-building work with, funding coming from central sources and they do not want to lose influence. The German Finance Ministry says that road development is underfunded in the country. Some €10 billion is spent on road development/year at present in Germany. For the road programme to be achieved, the annual spending will have to rise to €14 billion by 2018. Germany’s Federal Government does not believe that the states will be able to implement the necessary road-building programmes within the timeframe however. The German Transport Ministry expects goods transport to increase by 40% over the next few years, which is why central planning is necessary.
Finance & Funding

Related Content

  • German road expansion programme
    February 14, 2023
    A German road expansion programme is being proposed.
    Read More
  • Futureproofing UK construction equipment resilience
    May 5, 2021
    Rob Oliver is the longstanding CEO of the Construction Equipment Association (CEA), the UK trade association for the UK construction equipment industry. Guy Woodford recently caught up with him to discuss the industry’s health and the key issues facing the CEA and its members in 2021 and beyond.
    Read More
  • IRF awards Parsons for its East End Crossing work in the US
    August 7, 2015
    The International Road Federation (IRF) has awarded its Global Road Achievement Award for project finance and economics to Parsons for the East End Crossing of the Ohio River Bridges Project. Parsons, which served as the technical advisor for the implementation of a public-private partnership (PPP), received the award for achievements in cost savings and accelerated project delivery. This was done through the PPP procurement process for the development, design, construction, financing, operation and m
    Read More
  • Interview with Jean Todt – FIA president
    January 19, 2018
    Reducing the death and injury toll on the world's roads is a key priority. It is estimated that every year, 1.25 million people die on the world’s roads. With motorisation and urbanisation to increase in many parts of the developing world in the years to come, there is every likelihood that this number could rise. Can you explain why so many lives are needlessly lost every year on our roads and why greater action isn’t being taken to address this?
    Read More

Highlighted Content