Germany’s Transport Battle: CDU/CSU and SPD Clash Over Roads, Rail, and Deutsche Bahn’s Future

CDU/CSU and SPD have agreed to form a new government that will shape the future of German transport. While some measures have consensus, sharp clashes loom over issues like combustion engines, infrastructure funding, and the future of Deutsche Bahn. What changes are coming, and who will ultimately set the course?

Election results indicate that CDU/CSU will form the next German government, with the Social Democrats (SPD) as their partner. The coalition will hold a majority of around thirteen seats in the Bundestag.

However, forming a broad or grand coalition (GroKo) will be very challenging in terms of policy. We examined the positions on key programmatic issues affecting transport.

Energy: Lowering Prices, but How?

CDU/CSU and SPD agree on the need to reduce energy prices as a crucial cost factor for the transport sector, but they disagree on how to achieve it. CDU/CSU’s stance on the future of emissions allowances remains unclear. Each party will try to modify it, but they could end up blocking each other entirely. This would likely leave Germany unable to take decisive action on emissions trading reform at the European level.

Similarly, negotiations on the coalition’s road transport policy will be complex. Each coalition partner wants to modify, but not abolish, the EU-imposed sales quotas for electric vehicles. CDU/CSU wants to repeal the ban on combustion engines, while SPD is opposed and determined to maintain the ban while subsidizing climate-friendly freight and commercial vehicles. CDU/CSU, on the other hand, advocates for supporting alternative fuels, a topic on which SPD has no clear stance. They agree on expanding charging infrastructure for e-mobility, simplifying permitting procedures, and addressing the driver shortage.

A train through Germany: is Europe’s powerhouse going off the rails? //t.co/0McOKneaIu

— J.M. (@arrechisimo) February 25, 2025

Who Will Pay for Better Roads and Railways?

Infrastructure funding will also face starkly different visions from the future coalition partners. While SPD wants to abolish the debt brake and finance modernization through public debt, CDU/CSU insists on maintaining the debt brake and rejects the creation of an investment fund.

CDU/CSU wants to reduce the overall tax burden on the transport sector, including lowering CO2-related transport taxes, while SPD refuses to lower taxes and fees for transport. CDU/CSU also wants to end cross-financing between transport modes, ensuring that road toll revenues only fund road infrastructure.

Deutsche Bahn: Split or Maintain?

There is significant disagreement over the future of the national railway operator. CDU/CSU wants to split Deutsche Bahn, separating operations from infrastructure, while SPD strongly opposes this.

Both parties declare support for shifting transport from roads to railways, but their strategies remain vague. SPD wants to reform rail access charges, while CDU/CSU has not addressed this issue.

In aviation, CDU/CSU wants to reduce taxes and fees, while SPD only wants to “adjust” them. Both parties aim to strengthen inland waterway transport, which could become easier with the Greens in opposition.

Will the Transport Ministry Become the Ministry of Infrastructure?

Germany’s governance system gives the chancellor and their office a strong role in implementing policies. CDU/CSU and Chancellor Merz are expected to lead the redefinition of ministry roles. According to CDU/CSU’s internal plans, the Transport Ministry could be transformed into the Ministry of Infrastructure, incorporating energy infrastructure, construction, and permitting reform.

A new Economy Ministry will almost certainly be created, possibly also overseeing the labor market. Chancellor candidate Merz has stated that the ministry will be led by someone knowledgeable in economic policy and will not be staffed by non-governmental organizations. Climate policy will likely be moved back to the Ministry of the Environment.

Personnel decisions are not yet finalized, but professional transport circles favor assigning the transport and infrastructure portfolio to a CDU/CSU politician. According to a Deutsche Verkehrszeitung survey, 51% of respondents consider CDU/CSU the most competent party for transport policy, while only 12% believe SPD is capable.

Source: RAILTARGET, CDU/CSU, SPD