Germany's crumbling bridges need additional funds, auditors say
BERLIN, April 29 (Reuters) - Germany is lagging on its targets to renovate the country's dilapidated bridges by 2032 and needs to boost investment, according to auditors, who said the government's goals appear unachievable.
Only 69 of the 280 structures scheduled for renovation in 2024 under the 2032 plan had been modernised, Germany's federal audit office said.
To achieve the target, Autobahn GmbH, which is in charge of the renovations, would have to modernise around 590 substructures every year from now on. "That doesn't seem realistic," Kay Scheller, president of the office, said.
"The gap between planned and successful modernisation will continue to widen over the years," she said.
The audit office, which accused the transport ministry of presenting progress too positively and of falling short on the targets, said a total of 2.1 billion euros ($2.39 billion) would be required for 400 substructures in 2026, while the ministry put the sum at 1.4 billion euros.
The transport ministry disagrees with this assessment of "embellishing" the numbers, noting that the modernisation of bridges is a top priority, a spokesperson for the ministry told Reuters.
"The implementation of the programme is on schedule and is communicated transparently by the transport ministry and Autobahn GmbH," the spokesperson said.
The German auditors demanded more funds for the government-owned Autobahn GmbH without giving an exact figure, as that depends on construction price developments.
($1 = 0.8788 euros)
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The last time annual inflation in China eclipsed 1% was more than two years ago, and it has remained near zero, on average, ever since. China's 10-year bond yield remains anchored near January's record low below 1.60%, reflecting investors' skepticism that price pressures will accelerate any time soon. They have reason to be doubtful. Deflation and record-low bond yields continue to stalk the economy despite Beijing's fiscal and monetary stimulus efforts since September. And punitive tariffs on exports to the U.S., one of its largest export markets, are generating massive uncertainty about the country's economic outlook moving forward. This is where the exchange rate becomes important. On the face of it, Beijing appears to have resisted mounting pressure on the yuan thus far, with the onshore and offshore yuan last week trading near their strongest levels against the dollar since November. But when considering the yuan's broad real effective exchange rate (REER), an inflation-adjusted measure of its value against a basket of currencies, the Chinese currency is the weakest since 2012. Robin Brooks at The Brookings Institution reckons it may be undervalued by more than 10%. With China's goods so cheap in the global marketplace, China is essentially exporting deflation. And the yuan's relative weakness could put pressure on other Asian countries to weaken their currencies to keep them competitive, even as the Trump administration potentially encourages these governments to do the exact opposite. Countries in Asia and around the world, especially in the euro zone, may also be nervous that China could dump goods previously bound for the U.S. on their markets. If anyone wants confirmation that the "tariffs equal inflation" view is too simplistic, they got it this week from Switzerland, where deflation is back and potential negative interest rates may not be far behind. True, Trump's threatened tariffs could throw everything up in the air. But the Swiss example is a warning to markets and policymakers that global disinflationary forces may be spreading. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
