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Will Germany's new government keep the 'Deutschlandticket'?
Will Germany's new government keep the 'Deutschlandticket'?

Local Germany

time10-04-2025

  • Business
  • Local Germany

Will Germany's new government keep the 'Deutschlandticket'?

The coalition agreement between the Christian Democratic Union (CDU) and Social Democrats (SPD), signed on Wednesday, pledges to continue the Deutschlandticket scheme - although there will be further price increases for users in the future. 'The proportion of user funding will be increased gradually and in a socially responsible manner from 2029,' the agreement reads. After this date, funding will be determined by a 'fixed formula' to ensure customers and state and federal governments alike can plan ahead. The text does not include specifics of what the formula will be. The Deutschlandticket was introduced in 2023 as the successor to the wildly popular €9 ticket, which ran for three months in summer 2022 as a relief measure for high energy costs. It is currently funded by about €3 billion from federal and state governments in addition to customer subscriptions, currently set at €58 a month. READ ALSO: What Germany's new coalition pact means for foreign residents But the Deutschlandticket 's future has been repeatedly thrown into doubt over financing disputes. Some more rural states argue that they should not have to pay for a scheme which primarily benefits urban areas. The new government's formula is intended to put an end to these arguments. On the consumer side, however, it could result in significantly higher costs for users, depending on how the funding is divided. Advertisement The Deutschlandticket offers unlimited travel around the country for a fixed monthly price. With it, subscribers can travel on local and regional public transport anywhere in Germany, but not on intercity trains. As well as keeping the travel pass in place, the incoming government has pledged to embark on a "fundamental rail reform" and renew the country's ailing railways with tens of billions of new investment.

Inside Germany: Clock debates, controversial hedges and the sorrows of Deutsche Bahn
Inside Germany: Clock debates, controversial hedges and the sorrows of Deutsche Bahn

Local Germany

time29-03-2025

  • Business
  • Local Germany

Inside Germany: Clock debates, controversial hedges and the sorrows of Deutsche Bahn

Inside Germany is our weekly look at some of the news, talking points and gossip in Germany that you might've missed. It's published each Saturday and members can receive it directly to their inbox by going to their newsletter preferences or adding their email to the sign-up box in this article. Will the next government tackle Germany's rail crisis? "The greatest crisis in 30 years..." That was how Deutsche Bahn CEO Richard Lutz described the state of Germany's railways on Thursday . Lutz was presenting the company's latest set of dire figures to reporters, from the €1.8 billion of losses in 2024 to anaemic sales and total debts of €32 billion. In news that's unlikely to surprise many rail passengers, Deutsche Bahn also hit a new low in punctuality last year, with just 62.5 percent of trains arriving on time. "We are far from meeting our customers' expectations," Lutz said, perfecting the art of understatement. The endless sorrows of the national rail service are well known to anyone who lives in Germany. More recently, though, the reputation of Deutsche Bahn has even started to spill across borders. In a recent article , The Local France editor Emma Pearson shared her tips for staying sane while travelling on DB's "direct" Berlin to Paris service. In it, she cautioned readers to be stoic and expect the unexpected. So, as Germany gears up to usher in a new government, will the next 'Grand Coalition' be able to finally get to grips with the railways? On first glance, the noises sound positive - but, much like a cross-country trip on DB Regio, it won't be an easy journey. According to the latest leaked plans, the CDU/CSU and SPD want to embark on a "fundamental rail reform", clearing out old management and pouring in massive investments. As part of a €500 billion infrastructure fund, tens of billions would be used to spruce up the creaking railways and modernise the busiest routes. According to Lutz, at least €150 billion will be needed to get the job done. And, given how long some of these projects can take, several more years of delays may be on the cards. Luckily, though, the government is also promising to keep the Deutschlandticket , so you can still travel to your destination on a budget - provided you're not too concerned with getting there on time. Advertisement Tweet of the week Some of us may have made the mistake of deciding to do a spot of cleaning DIY on a Sunday, forgetting about Germany's sacred Ruhetag (quiet day) rules. If your German neighbours have anything to do with it, it's not a mistake you'll make twice. When it's Sunday, and it's Germany, and you want to watch the world burn. — Nic Houghton (@40PercentGerman) March 23, 2025 Where is this? Photo: picture alliance/dpa | Jan Woitas This atmospheric scene shows the MS Cospuden moored on Leipzig's Cospudener See on Thursday evening during a cosy book reading. Parallel to the Leipzig Book Fair, which runs until Sunday, more than 3,000 events are taking place at 350 different locations throughout the city for the 'Leipzig reads' reading festival - including atop the city's lakes. Advertisement Clocks go forward... again It's that time of year again. On March 30th, the clocks go forward and politicians go back to a years-long debate about when (if ever) the practice will be scrapped for good. The European Union has been eyeing an end to Daylight Saving Time since 2018 , when a public consultation revealed that millions were in favour. For the past seven years, however, the bloc has been stuck in limbo amid disagreements on how to go about it. This year Poland is in charge of the rotating EU presidency and wants to put the question of the clocks back on the agenda. Proponents of the change are pushing for a target date to end the changing of the clocks in order to speed up the process. If they're successful, it's possible the bloc could be gearing up to finally call time on the century-old practice. For now, though, we're still set to wake up one hour later on Sunday morning (or lose one hour of sleep, depending on how you think about it) - and gain an hour of sunlight in the evening. Advertisement When is a hedge too high? If you've lived in Germany for a while, you've probably realised that there are some very strict rules governing neighbourly behaviour. From grilling on your balcony to how often your guinea pigs have sex, every question imaginable can end up in the German courts . Most recently, the Constitutional Court in Karlsruhe was asked to rule on a highly philosophical question: when is a hedge a hedge, and how high can it be? The question was prompted by a recent dispute in Frankfurt between two neighbours. The plaintiff had demanded that his neighbour cut back her six-metre bamboo hedge, while the neighbour refused to do so. After much back and forth, the verdict was clear: there is no legal height limit for a hedge in Germany. That said, you do have to make sure it's far enough from your neighbour's property - and don't forget to trim it at the specified times of year .

Crisis-hit German rail operator reports another massive loss
Crisis-hit German rail operator reports another massive loss

Local Germany

time27-03-2025

  • Business
  • Local Germany

Crisis-hit German rail operator reports another massive loss

Years of chronic underinvestment have left the train network in Europe's biggest economy in a sorry state, with passengers frequently complaining of long delays, cancelled trains and poor service. State-owned Deutsche Bahn booked a net loss in 2024 of €1.8 billion, although this marked an improvement from a loss of €2.7 billion the previous year, while sales were flat. It shed some debt but is still saddled with a hefty €32 billion, which has built up over the years. "Deutsche Bahn is facing its most serious crisis" since major railway reforms of the mid-1990s, said CEO Richard Lutz. "We are far from achieving our goals and far from meeting our customers' expectations in key areas." The "poor condition" of infrastructure weighed heavily, as did strikes by train drivers at the start of the year and the weakness of the German economy, which has been in recession for the past two years, the operator said. Train delays -- a constant gripe of German rail passengers -- also become more even more frequent in 2024, with just 62.5 percent of long-distance services arriving on time. READ ALSO: Deutsche Bahn pays out compensation to millions of rail passengers in Germany The task ahead is colossal, with around €150 billion needed for improvements to the existing network as well as new projects, Deutsche Bahn said. But Lutz insisted that a turnaround was underway, pointing to huge investments in infrastructure last year and an ongoing restructuring plan, which will involve thousands of job cuts. Advertisement He also hailed a plan to establish a €500 billion fund to overhaul Germany's creaking infrastructure, which was pushed by chancellor-in-waiting Friedrich Merz and voted through parliament last week. The fund, to be spent over 12 years, is "part of the solution" as it provided "economic security" for the rail industry, he told a press conference. READ ALSO: What's in Germany's giant spending package? "We can send the signal to the railway and construction industry to build additional resources now, invest in additional machines, and also in additional people." The outlook for this year was already rosier than 2024, the operator insisted, forecasting an increase in sales, a positive operating profit and a fall in debts. Richard Lutz, CEO of Deutsche Bahn, takes part in a presentation of ICE-4 trains in Cottbus. Photo: picture alliance/dpa | Patrick Pleul Plans to reform the railways The centre-right CDU and CSU, which came top in Germany's February elections, are currently thrashing out a coalition agreement with the centre-left SPD with the aim of forming a government by Easter. Most recently, a working group tasked with looking at transport and infrastructure pitched a number of reform proposals to party leaders. READ ALSO: What will Germany's likely new government do about the Deutschlandticket ? According to the paper, which was obtained by Handelsblatt, the parties want to push ahead with major infrastructure investments over the coming years, including the refurbishment of 41 high-performance corridors that was intiated by the previous government. Advertisement This would be financed by a special rail infrastructure fund, drawn from the €500 billion financial package. According to the draft, the government wants to reform the railways to improve the quality of rail transport, ensure government money is going to the right places, and secure jobs in the long-term. However, Lutz's job could well be for the chop as the parties set out plans to restaff top management at Deutsche Bahn. With reporting by Imogen Goodman

What will Germany's likely new government do about the 'Deutschlandticket'?
What will Germany's likely new government do about the 'Deutschlandticket'?

Local Germany

time26-03-2025

  • Business
  • Local Germany

What will Germany's likely new government do about the 'Deutschlandticket'?

In an initial policy paper released at the start of March, the negotiating parties had good news for avid public transport users: Germany's Deutschlandticket was to be continued. "We are discussing the continuation of the Deutschlandticket and the expansion and modernisation of local public transport," the exploratory paper read. Unsurprisingly for a document that had been produced in a matter of days, however, the draft was thin on details. Fleshing them out was the task of a working group on transport, infrastructure and housing, which passed its recommendations onto senior party leaders on Monday. According to DPA, which has seen the proposals, the Deutschlandticket could be continued at a price of €58 per month through 2025 and 2026. The cost would then be increased "gradually and in a socially responsible manner" from 2027. READ ALSO: Citizenship to Bürgergeld - What Germany's CDU and SPD have agreed so far To resolve the endless debates over financing, the money stumped up by customers - as well as by states and federal governments - would be calculated according to a strict formula. This could lead to significantly more costs for ticket users. Uncertain future Though the working group has put its recommendations forward, it's still unclear whether these proposals will be adopted in a future coalition pact. Instead, a steering committee of party leaders will look at the plans and make a final call in the coming weeks. As part of their assessment, the negotiators will also look at budget constraints. Despite the parties' pledge to keep the travel pass, the financing of the Deutschlandticket hangs in the balance after the end of the year. Advertisement Currently, states and the federal government have both pledged a €1.5 billion subsidy for transport companies until the end of the year, laid down in the Regionalisation Act. In order to continue the ticket past 2025, however, another amendment would have to be made. At the start of the year, the price of the ticket was increased from its initial €49 per month to €58 per month in order to assuage funding concerns. READ ALSO: What happens next in Germany's rapid-fire coalition talks? Commenting on the potential price increase, Greenpeace transport expert Lena Donat said signalling the next price rise after January's hike could "offend people" and jeopardise the popularity of the scheme. "It's good that the CDU/CSU and SPD have realised what a treasure they have inherited with the Deutschlandticket and want to continue it," Donat explained. Instead of higher prices, Greenpeace would like to see an expansion of the scheme to include a social ticket for people on low incomes. A regional Deutsche Bahn train stops on the platform in Braunschweig. Photo: picture alliance/dpa | Swen Pförtner Clashing perspectives According to DPA, clashing perspectives on the ticket were fighting against each other in the transport and infrastructure working group last week. The centre-left SPD - who helped introduce the ticket - have been passionate proponents of keeping the scheme, describing it as a "huge success". Negotiators from the party have apparently been pushing to maintain the offer at its current price. However, politicians from centre-right CDU and CSU parties have generally been more sceptical. Advertisement Ulrich Lange, deputy leader of the CDU/CSU parliamentary group, has previously spoken out in favour in replacing the ticket with "something further or new" and said cars would remain the primary mode of transport in the countryside. READ ALSO: Will Germany's 'Deutschlandticket' survive after the elections? Introduced in May 2023, the Deutschlandticket offers unlimited travel around the country for a fixed monthly price. With it, subscribers can travel on local and regional public transport anywhere in Germany, but not on intercity trains.

Ten open questions at the start of Germany's coalition negotiations
Ten open questions at the start of Germany's coalition negotiations

Local Germany

time14-03-2025

  • Politics
  • Local Germany

Ten open questions at the start of Germany's coalition negotiations

Following an expected win for the centre-right Christian Democratic Union (CDU) and Christian Social Union (CSU) parties in Germany's February 23rd elections, the conservatives are currently holding talks with the centre-left Social Democrats (SPD) on forming a new government. After a brief kick-off meeting on Thursday, the main phase of negotiations began on Friday, with 16 working groups trying to thrash out the details of a future coalition pact. Though coalition talks have been known to last months in the past, CDU leader Friedrich Merz - who is likely to be Germany's next Chancellor - has put the teams on a tight deadline. According to Merz's instructions, talks should be wrapped up by March 24th at the latest, with the new government taking shape as early as April 14th. So far, the parties have set out a framework for their 'Grand Coalition' in a brief policy paper, which will form the basis for talks. However, as negotiations get underway, there are several questions that remain unanswered. Citizenship and migration To the relief of many foreigner nationals, a future CDU/SPD coalition would keep Germany's extensive citizenship reforms in place, meaning dual nationality and current residence requirements are set to remain. However, the parties also say they want to revoke citizenship from "terror supporters, anti-Semites and extremists" who hold dual nationality. So far, it's unclear if this would be permissible under German law. There are also some contradictions inherent in the parties' migration policy, with the policy paper talking about "limiting" migration while encouraging skilled workers into the country. Over the next ten days, the parties will have to decide which of these goals they want to prioritise. Military service While there is a joint plan for the financing of the Bundeswehr, there's no mention of military service in the exploratory paper. However, prominent CDU politicians have recently called for some type of mandatory service to be re-introduced. It therefore remains unclear if a new compulsory service model - or voluntary service year - might come into force and if it does, who it would apply to. Future of the Deutschlandticket Merz was notably reticent on the future of the Deutschlandticket in the run-up to the election, with some prominent CDU MPs suggesting it should be scrapped. In the initial policy paper, the parties say they want to discuss the "continued existence" of the ticket beyond this year - but there are so far no indications on how this could be financed. Ukraine Despite the volatile situation in Europe, there is little mention of foreign policy and security in the parties' exploratory paper. This leaves several questions open on Ukraine. Will three billion euros worth of arms deliveries to Ukraine be authorised in the short term? Does the "no" to the delivery of Taurus missiles still stand? And what is Germany's position on a European nuclear defence shield and a European peacekeeping force for Ukraine? All of these issues will need to be thrashed out in next week's talks. Government cuts Though Merz looks likely to be able to push his multi-billion euro spending plan through parliament next Tuesday, the parties say they "want to make savings" when it comes to the federal budget. Deciding where to make these cuts is likely to cause some controversy between the centre-right and centre-left parties. As the new government paves the way for a multi-billion borrowing spree, it's also unclear if tax raises could be on the horizon. Heating law During the election campaign, the CDU had promised to repeal Robert Habeck's beleaguered heating bill, which paved the way for the replacement of fossil-fuel heaters and offered subsidies for heat pumps. None of this is mentioned in the exploratory paper, meaning it's likely to be up for negotiation next week. Pensions Both sides have agreed to safeguard the level of pensions, which is currently set at 48 percent. Though the actual pension people receive varies based on contributions, this means that an average earner paying in for 45 years is guaranteed almost half of the average German salary, which is currently around €3,260 per month. While this may sound like a firm agreement, however, the parties are careful not to say what level of pension will be safeguarded. This means the current rate could change under the new government. Police powers Following a spate of recent attacks in Germany, the conservatives have been keen to give more powers to the state in order to investigate and crack down on potential extremists. Nevertheless, internal security and police and state powers are not detailed in the exploratory paper, suggesting that the parties could be in for a battle on this topic. Nuclear exit Germany has been in the process of shutting down its nuclear facilities, but the pro-nuclear CDU and CSU - and particularly Bavarian state premier Markus Söder - have called for this to be reviewed. The issue isn't mentioned in initial policy proposals, however, and may be difficult to enact in practice. Electoral reform With the number of MPs in the Bundestag growing every year, the previous traffic-light coalition introduced a reform of Germany's electoral law that limited the number of directly elected politicians. However, the trial run of this new system on February 23rd led to some disappointment as a number of MPs with direct mandates were unable to represent their constituencies. To correct some of these teething problems, the CDU and SPD have promised to reform electoral law yet again. At present, though, it's unclear how they could do so.

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