
Germany's infrastructure push needs more than money
As construction crews using heavy excavators demolished a major highway bridge in Berlin, pensioner Guido, like many Germans, greeted the dusty spectacle with grim satisfaction.
"For once, it was very quick, it took about a month," said the 65-year-old, who only gave his first name, adding that "we're not used to our projects going according to plan".
A crack first appeared a decade ago in a support structure of the concrete and steel bridge built in 1963 that forms part of the capital city's busy A100 ring road.
After the crack recently widened alarmingly, work to take down the bridge finally started in March, leaving piles of rubble below.
Thousands watching the demolition on an internet livestream were happy to see the start of a multi-million-euro renovation project but were upset it took so long.
The case is symptomatic of a problem facing the world's third-biggest economy: an enormous backlog of crumbling infrastructure that needs replacing at a cost of hundreds of billions.
Thousands of roads and bridges, many from the 1960s and 1970s, are reaching the end of their lifespans, and little has been done for years as governments have shied away from major spending.
Germany's new Chancellor Friedrich Merz has pledged to give Europe's top economy a facelift that is also set to include new railway tracks, school buildings and telecom lines.
Even before he took office, his coalition managed to have the previous parliament pass a gigantic 500-billion-euro infrastructure fund
dubbed a spending "bazooka"
.
Wake-up call
After years of fiscal restraint, Germans are crying out for action: an end to patchy mobile phone signals, late trains, slow internet and potholed roads.
A dramatic wake-up call came in September, when a 400-metre-long bridge
collapsed in the eastern city of Dresden
, with large sections crashing into the Elbe river.
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Luckily it happened overnight, averting a potentially deadly disaster, but the incident made Germany's infrastructure malaise a major election campaign theme.
Germany's bridges need 100 billion euros' worth of repairs and upgrades, according to the European Federation for Transport and Environment (T&E).
Along German motorways and major roads, one third of bridges need to be reconstructed entirely, said the Brussels-based group.
The need is all the more pressing since the last government "embellished" progress, according to a report from the Federal Court of Audit, which found that just 40 percent of bridge renovations planned for 2024 were actually completed.
The new government's fund, intended to be spent over 12 years, should help -- but many local politicians aren't holding their breath.
"Money alone solves nothing," scoffed Steffen Scheller, mayor of the eastern town of Brandenburg an der Havel, an hour's drive from Berlin.
Scheller is hoping for 90 million euros from the fund but said there is another, major problem: "We have a shortage of qualified project managers and engineers."
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Bureaucracy can also slow down the process, he said.
A new bridge was built in 2023 over a congested level crossing outside of the city, but has stood unused since. Before it can open, safety barriers must be built.
But the project was pushed back to 2026 after some companies complained that proper procedure had not been followed in the tender process.
'Fanciful projects'
"I've given up all hope of ever using the bridge," said motorist Fransiska, stuck in a traffic jam caused by the closure.
The 38-year-old hospital worker said her commute takes about an hour longer than it used to.
Most of the town's 70 bridges were built back in East Germany's communist days, using substandard steel. Several of them are now closed to heavy goods vehicles, causing problems as they reroute.
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Brandenburgers are particularly distraught at the delay in rebuilding a bridge in the town centre that had been promised for 2022.
The delay means "local business really struggles with transport" while the town faces higher pollution, Scheller said.
Benedikt Heyl, author of the T&E report, said Merz had demonstrated "ambition" to tackle the problem.
But Heyl said the new transport minister, Patrick Schnieder, should do better than renovate the 4,000 bridges he has promised by 2030.
Merz should put "fanciful projects" for new motorways on pause, Heyl said, and work on the basics, such as making sure construction companies have long-term contracts that allow them to plan for the future.
First of all, he said, the central government must take a thorough stocktake of the scale of the problem.
"The data is often very poor," Heyl said. "Local authorities often know how bridges are doing. But nobody has an overview at the national level."
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Local Germany
10 hours ago
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OPINION: It's high time Germany scrapped the rent brake
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And as my colleague Paul Krantz has explained , even in simpler cases where the rent has been set too high on a standard lease, many who could challenge it do not – for lack of understanding, lack of time and energy, or lack of confidence confronting a potentially Scrooge-like landlord. A man hangs up his keys in a Berlin apartment. Photo: picture alliance/dpa/dpa-Zentralbild | Kira Hofmann Then there are the grey areas where well-meaning letters can easily end up unintentionally contravening the Mietpreisbremse . Under the rule, rents should not exceed a local average price by more than ten percent in tight housing market areas. But local rental averages are determined in rent price indexs – Mietenspiegel – which themselves are for more complicated than many assume: this is Germany, after all. In Hamburg, for example, figures are declined in a detailed table according to the specific location of buildings and when they were completed, leaving ranges of between €3 and €5 per square metre to take account of amenities such as balconies, bathtubs, and bicycle cellars… What is more, the Mietpreisbremse doesn't apply when significant works have been carried out prior to letting: but what does 'significant' actually mean? You might not be surprised to learn that, in cases which have gone to court, complicated formulae have been applied and a range of factors taken into account… The upshot is now that, to be sure of being able to make back money invested, law-abiding landlords are now likely to have more work done than might be strictly necessary (and then need to set rent even higher to recoup the extra costs…). Others, meanwhile, simply do the place up on the cheap and hope that tenants never challenge them to show their receipts. 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So increasingly, landlords max out the 10% the Mietpreisbremse allows – and then make use of all legal options to keep upping the rent. That is one reason so many new rentals are now using the unloved Staffelmiete (defined raises every year) and Indexmiete inflation-linked contracts, which allow for increases of 15 or 20 percent in a three-year period. Previously, it was standard practice – especially among ethically-minded private owners – to issue standard contracts and leave rents more or less untouched for sitting tenants before upping them on re-letting. Now, as rents continue to soar but the Mietpreisbremse limits raises, many private landlords are, perversely, having to hike rents in existing leases to avoid trouble with the Finanzamt further down the line: not charging market rates is, of course, considered a form of tax avoidance. These in-tenancy rises then drag up the averages on which the 10 percent maximum is calculated, and so the 'rent brake' is being applied at the same time as the price accelerator. Advertisement Overly-complex – and potentially unconstitutional This reveals the fundamental problem with rental controls. Like it or not, Germany's rental market is just that – a market. Yet by selling off swathes of social housing stock over recent decades, many major cities have deprived themselves of the best means of slowing price rises in this market -- offering affordable rental accommodation to those who need it. Instead, they now find themselves shelling out huge sums in housing benefit – Wohngeld – to low-income households and hoping that middle-income tenants have the gumption and courage to apply the complicated Mietpreisbremse themselves. All of this, meanwhile, puts the majority of well-meaning landlords at a disadvantage and encourages those with the ways and means to maximise revenue (or to simply ignore the system). No wonder rents are going up faster than ever. A view of flats in Hamburg. Photo: picture alliance/dpa | Daniel Bockwoldt So for me, it's simple: the Mietpreisbremse should be scrapped. Even in this market, asking rents currently can't go much higher – prospective tenants can no longer afford them on their wages – and there is every reason to suspect that the legislation may actually have pushed prices to this point faster than would otherwise have been the case. This, in turn, is contributing to stasis as people are forced to stay put and make do , with vacancies in most cities far below the 1 percent generally considered the minimum necessary for a functioning rental market. What is more, the Mietpreisbremse will eventually become unconstitutional: in our market economy, the state is not allowed to use price-fixing legislation to force a lasting devaluation of assets. Advertisement Thus far, Karlsruhe has accepted the rent controls because they are temporary, being implemented for defined periods of time. Yet when this planned extension reaches its term in 2029, the measures will have been in place for almost 15 years – making them 'temporary' in the same way that the exceptionally ugly shelving unit I 'temporarily' put in my hallway when we moved in 2010 is still 'temporary' one-and-a-half decades on. Mercifully, we haven't had our rent raised since then. Then again, we moved in before the Mietpreisbremse and paid top-whack in the first few years. That's how things used to work. Our newer neighbours, however, all seem to get regular rent increases. Call me crazy, but…