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Warning against the Risks of Unregulated Market Liberalization

Published July 15, 2026 at 5:03 PM UTC

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While the promise of cheaper tickets on major routes is appealing, the rapid liberalization of Germany's long-distance rail market carries significant risks for the broader public. The railway union EVG and various passenger advocates have rightly pointed out that if new competitors focus exclusively on the most profitable 'cherry-picked' corridors, the entire rail system could become fragmented. Deutsche Bahn currently uses the profits from its busiest routes to cross-finance essential services in smaller cities and rural regions. If that revenue stream is eroded by private operators, the result could be the discontinuation of long-distance stops in at least 16 cities across Germany.

Competition must not be treated as an end in itself. If the entry of new players leads to a situation where major metropolitan hubs are flooded with competing trains while rural areas are left on the sidelines, the overall connectivity of the country will suffer. A truly fair market requires a comprehensive approach that ensures all regions remain connected, rather than simply prioritizing the most commercially attractive routes. The government must establish a federal authority capable of organizing routes in a way that balances the benefits of competition with the social necessity of nationwide rail access.

Furthermore, Germany's rail network is already under immense pressure, with many key nodes and corridors operating at or near maximum capacity. Adding more high-speed trains to an already congested system risks creating further delays and operational instability. Before opening the floodgates to new operators, policymakers must ensure that the infrastructure can handle the increased load without compromising the reliability of regional and local services, which remain the backbone of daily mobility for millions of commuters.