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Billions in EU Rail Funding at Risk—Will Member States Lose Out Before the 2026 Deadline?

Billions in EU Rail Funding at Risk—Will Member States Lose Out Before the 2026 Deadline?
photo: MAD.RICHI / Flickr/Illustrative photo
03 / 02 / 2025

With the August 2026 deadline approaching, EU Member States risk missing out on crucial Recovery and Resilience Facility (RRF) funds for railway projects. UNIFE warns that delays could jeopardize rail modernization efforts, job creation, and European competitiveness.

European rail infrastructure stands at a critical crossroads as several EU Member States risk losing out on vital funding for railway projects due to the fast-approaching Recovery and Resilience Facility (RRF) deadline, according to UNIFE.

The EUR 650 billion RRF program, launched in 2021, was designed to finance Member States’ reforms and investments through a combination of grants and low-interest loans. A substantial portion of these funds has been allocated to rail projects, contributing to network upgrades, fleet modernization, and sustainability goals. However, with the final deadline for payment requests set for August 2026, there are growing concerns that some countries may struggle to complete the required milestones in time.

"Many EU Member States have budget concerns, and we want to insist on the need of not missing this historic opportunity to invest in rail," said Enno Wiebe, UNIFE Director General. "With the RRF, the European Commission is aiming at turning a crisis into a generational opportunity to boost European mobility and innovation."

Countries Making the Most of EU Rail Funds

Some EU countries have effectively capitalized on the available RRF funding to modernize and expand their rail networks. According to UNIFE’s latest analysis, leading recipients include:

Italy’s approach, in particular, has transformed its rail sector, with significant investment in ERTMS deployment and new rolling stock purchases, which have revitalized the country’s network and increased connectivity.

The European Commission set specific funding criteria, urging Member States to prioritize projects that enhance economic resilience, sustainability, and digital transformation. More than half of the estimated EUR 87 billion for sustainable mobility in various national plans has been allocated to rail initiatives at both urban and mainline levels.

Challenges in Meeting the 2026 Deadline

Despite significant investments, several Member States face challenges in meeting the RRF funding requirements, as rail projects often have long implementation cycles. According to UNIFE, the short time frame to complete the required milestones and targets is proving problematic for many countries.

The long lead times associated with rail infrastructure development—including planning, procurement, and construction—mean that many projects may not meet the strict deadlines for accessing funds. UNIFE has alerted the European Commission about these concerns, urging flexibility in project timelines. "Many of these funds could go towards creating jobs on ‘shovel-ready’ rail projects, fleet renewals, boosting the ERTMS roll-out, improving and greening urban mobility, and advancing the completion of the Trans-European Transport Network (TEN-T)," Wiebe said.

EU Commission’s Response and Possible Extensions

The European Commission has acknowledged these concerns and is working with Member States to adjust project milestones and targets where possible. While extending the 2026 deadline would involve legal and political complexities, some flexibility has been introduced to help countries secure funding for projects that require longer implementation periods.

With the next EU Multiannual Financial Framework (MFF) under discussion, UNIFE has emphasized the need to ensure that rail projects have sufficient and realistic timelines to benefit from future EU funding mechanisms. "Considering the next EU budget, where the application of the RRF performance-based method will be the rule across different EU funding programs, we need to make sure that rail projects are given sufficient and realistic timelines to be able to benefit from EU funding," Wiebe urged.

The Future of EU Rail Investment

As the deadline for RRF funding approaches, policymakers and industry leaders must act swiftly to secure financing for critical rail projects. Failure to do so could result in missed opportunities for modernization, job creation, and sustainability improvements within the European rail sector. With Member States under pressure to finalize payment requests, the next two years will be decisive in determining whether Europe can fully capitalize on this unprecedented rail funding opportunity—or if billions in investment will go unclaimed.

Source: UNIFE

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