Germany’s public transportation system faces significant challenges, with potential service cuts on the horizon. The President of the Association of German Transport Companies (VDV), Ingo Wortmann, has warned that passengers will likely feel the effects of ongoing financial gaps in public transport funding.
Financial Strain and Declining Ridership
2025 has been a turbulent year for rail travel, marked by a new government and leadership at the national rail company. The VDV’s assessment reveals persistent issues across three key areas: the condition of public transportation, a crisis in freight rail, and a stalled modernization pact. Passenger numbers in local transport have not yet recovered from the declines experienced during the COVID-19 pandemic. While ridership increased from 9.78 billion in the previous year to 9.86 billion in 2025, this remains below pre-pandemic levels of 10.43 billion in 2019.
The Deutschlandticket and Future Funding
The introduction of the Deutschlandticket, a nationwide monthly pass, has not resulted in the mass exodus of customers some feared. Despite a price increase to 63 euros at the beginning of the year, subscriptions reached 14.6 million by the end of 2025 – an increase of nearly one million within a year. The cancellation rate at the start of 2026 was 5.75 percent, lower than the previous year. However, VDV President Wortmann notes that the ticket has primarily attracted returning customers, not new ones, and that affordability alone is insufficient to drive sustained growth; reliable and comprehensive service is also essential.
The financial situation for public transport companies remains precarious. While energy prices have seen a slight decrease compared to 2024, personnel costs continue to rise. Public funding currently covers approximately 26 billion euros of the 39 billion euro total cost, a growing imbalance that leaves transport companies increasingly reliant on government budgets.
Potential Service Cuts Loom
To secure the future of public transport, the VDV is calling for long-term planning and a new funding model. Without these, service reductions are likely. Wortmann stated that connections could be cut and fewer buses and trains offered as early as this year, and certainly by the December timetable change if “substantially nothing changes.” A key component of this is a modernization pact, promised in the previous legislative period and included in the current coalition agreement, but currently blocked by the Federal Ministry of Finance and the Federal Ministry of Transport due to concerns about additional financial demands from states and municipalities.
Freight Rail Faces Additional Challenges
The situation in freight rail is even more critical, with transport performance declining from around 150 billion tonne-kilometers in 2022 to 133.9 billion in 2025. The sector is grappling with intense competition from trucks, a weak economy, and rising energy and labor costs. Adding to these challenges is a rail network operating at its limit, with a projected 28,000 construction sites across Germany this year – 2,000 more than in 2025. These sites lead to diversions, longer travel times, and increased costs.
Industry representatives are questioning the strategy of complete line closures for maintenance, warning that these closures could push freight traffic onto roads. In 2026, around 1,144 kilometers of heavily used tracks will be completely closed for renovation. Deutsche Bahn, however, remains committed to the concept of full closures for essential upgrades, with further work planned on key routes starting in February.
Frequently Asked Questions
What is the Deutschlandticket?
The Deutschlandticket is a nationwide monthly pass for public transport in Germany, currently priced at 63 euros.
What is the VDV warning about?
The VDV is warning that without additional funding, public transport services may be cut, leading to fewer buses and trains.
What is the situation with freight rail?
Freight rail transport is declining due to competition from trucks, economic conditions, rising costs, and an overloaded rail network with numerous construction sites.
As Germany’s public transport system navigates these financial and logistical hurdles, what steps might be necessary to ensure accessible and reliable transportation for all citizens?
