"Pricey Kindness": Wegner queries the fate of Germany's transit ticket
Wegner challenges Germany Ticket proposal
In a candid conversation with Handelsblatt, Berlin's governing mayor, Kai Wegner, questions the future of Germany's transit ticket, dubbing it as "well-meaning but costly" for the federal government and states. This ticket, costing 58 euros per month for nationwide use of local and regional transport, is currently the subject of negotiations between the federal government and the states.
The coalition agreement between CDU, CSU, and SPD has affirmed the continuation of the transit ticket beyond 2025 but has also signaled that users can anticipate higher costs from 2029 onwards.
At present, both the federal government and the states jointly contribute 1.5 billion euros annually to finance the ticket, offsetting revenue losses in transportation companies. Nevertheless, the federal funds are only legally secured for this year, with 14 million users enjoying the ticket's benefits.
Negotiations Struggle Amidst Financial Uncertainty
Federal Minister of Transport Patrick Schnieder of CDU described the negotiations with the states as challenging, demanding a unified stance. There seems to be discord among the states regarding their willingness to foot the bill.
Wegner voices his concern over the financial pressures faced by the states. Berlin's approval of the economic relief package proposed by the federal government is contingent on specific conditions. "We in Berlin have agreed internally within the coalition not to support any budget-burdening measures," he asserts, emphasizing the need for manageable burdens amidst the economic turmoil.
German Revenue Losses and Negotiations with the Chancellor
Beyond the transit ticket, Wegner also alludes to revenue losses due to the planned VAT reduction for the catering industry from 2026 onwards. This reduction from 19 to 7 percent could lead to annual losses of 100 million euros solely in Berlin, necessitating a dialogue with the federal chancellor. He stresses the need for "a fair balance of interests," advocating for the principle, "Whoever orders, pays."
The federal government's relief package includes enhanced tax depreciation possibilities for companies and a decreased corporate tax rate from 2028 onwards. A meeting with the Chancellor and CDU leader Friedrich Merz, initially planned for June 18, has reportedly been postponed, with a new date pending coordination.
Sources: ntv.de, mli/dpa/AFP
As you may have noticed, there's some confusion regarding the "Germany ticket" mentioned in the article. The Deutschland Ticket is a recent initiative aimed at affordable public transportation across Germany. However, there seems to be some inconsistency as the "Germany ticket" is not explicitly mentioned in the latest news or updates.
Currently, the Deutschland Ticket costs 58 euros per month and allows unlimited use of local public transit throughout Germany. It is available as a monthly subscription and can be bought through various apps, including Deutsche Bahn's.
It's essential to note that, as of now, there's no specific information regarding funding increases or negotiations related to the Deutschland Ticket. However, discussions about public transportation often involve funding and cost adjustments, which might be part of broader transportation policy negotiations.
- The ongoing negotiations between the federal government and the states about the transit ticket are particularly challenging, as both parties are trying to find a unified stance on the rising costs that will impact users from 2029.
- Amidst these negotiations, Berlin's governing mayor, Kai Wegner, has emphasized the importance of manageable burdens for the states, particularly for policy areas like the transit ticket and potential revenue losses from VAT reductions for the catering industry.
