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Federal government leaves states hanging with the Deutschlandticket

Federal government leaves states hanging with the Deutschlandticket

Federal government leaves states hanging with the Deutschlandticket
Federal government leaves states hanging with the Deutschlandticket

Federal Government Avoids Funding Boost for Deutschlandticket

In preparation for the meeting between Chancellor Olaf Scholz and state leaders on Monday, government representative Steffen Hebestreit clarified that the federal government won't contribute any extra funds toward the Deutschlandticket. He emphasized the budgetary challenges under which the federal government operates. The main concern is figuring out how to manage the anticipated increased expenses related to the ticket in the upcoming year.

The federal and state governments have each agreed to contribute 1.5 billion euros annually for the ticket until 2025, with an understanding to share any unforeseen expenses incurred this year. However, they have been at odds for months over who will bear the additional costs starting from 2024. The federal states have expressed reluctance to shoulder more than half of these additional costs. Hebestreit acknowledged the stance of the federal states, though he reiterated that the federal government had agreed to share "any possible" additional expenses. He emphasized this was a "one-time financial assistance."

SPD transportation advocates voiced concerns that the ticket may fail if the financial framework doesn't evolve. According to Der Spiegel, they signed a two-page document urging both the federal and state governments to cover half of the anticipated additional costs starting from 2024, with Monday's conference being the "latest possible time" to make this decision. Signatories include Lower Saxony's Economics and Transport Minister Olaf Lies, his Saxon counterpart Martin Dulig, as well as Bundestag Deputy Group Leader Detlef Müller and transport policy spokesperson Isabel Cademartori. They estimated the ticket cost for 2024 at 4.1 billion euros and 4.6 billion euros for 2025.

Consumer Advocates Outraged

If necessary financing adjustments aren't made and the transfer of remaining funds from 2023 isn't approved, the ticket price will increase to 64 euros on May 1, 2024, warned SPD representatives in a letter, citing Der Spiegel. This price hike could make the ticket less appealing and potentially miss out on attracting its predicted 13 million customers.

Ramona Pop, head of the Federation of German Consumer Organizations, stated that the 49 euro introductory price is already a significant obstacle for many consumers, especially those who seek to switch from cars to public transportation.

Pop proposed that instead of discussing price hikes, Scholz and the state leaders should enhance the consumer-friendliness and reliability of the Deutschlandticket. This could include providing a price guarantee, in addition to a nationwide social ticket and ensuring uniform solutions for students and families. She proposed a roundtable conference on the Deutschlandticket involving consumer and passenger associations. The Deutschlandticket has been in effect since May and grants holders unlimited access to local and regional public transportation throughout Germany for 49 euros a month.

German authorities, along with consumer advocacy groups, express concerns regarding the potential increase in ticket prices, which may deter consumers who are expected to switch from private vehicles to public transportation.

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