Pouring billions into rail without addressing bureaucratic inefficiencies and governance failures risks throwing good money after bad. The new minister's five-point plan sounds promising, but similar pledges have been made before, with little improvement in punctuality or reliability.
Deutsche Bahn has a track record of cost overruns and project delays. The Stuttgart 21 project, originally budgeted at €2.5 billion, is now expected to cost over €11 billion. Such examples should give taxpayers pause. Without clear accountability and streamlined approval processes, new investments may face the same fate.
Moreover, the focus on rail ignores alternative solutions. The labor market crisis—with 2 million unfilled positions—cannot be solved just by better trains. More flexible work arrangements, digitalization, and targeted immigration are more direct remedies. Spending billions on infrastructure that may take a decade to deliver is not a quick fix.
Additionally, the costs will ultimately fall on households and businesses through higher taxes or fares. Some economists argue that money could be better spent on education, research, or tax relief to stimulate innovation.
Rail is important, but the debate should be about whether the planned investments are the most effective use of scarce public funds. Until deep structural reforms are enacted, the risk of waste remains high.