Germany's Financial Aid for 2025 Event
In an announcement made today in Dresden, the Saxony cabinet has approved the funding mechanism for the Germany Ticket in 2025. According to Infrastructure Minister Regina Kraushaar (CDU), the existing funding strategy will continue, enabling local transport companies in the state to offer the popular public transit option.
Kraushaar expressed her belief that this decision will benefit residents of Saxony, as the Germany Ticket has proven to be a successful model, with approximately 540,000 users. The cost for nationwide use of local and regional transport remains at €58 per month.
Like last year, the Free State will contribute €43 million towards the funding, with the federal government and states each providing half of the compensation for the transport companies' lost revenue. The federal government's financial backing is currently only guaranteed for 2025, as their funds are legally secured only for this year.
The coalition agreement between the CDU, CSU, and SPD in the federal government stipulates the continuation of the Germany Ticket beyond 2025. From 2029 onwards, gradual and socially acceptable user financing increases are planned, with a fixed key for the distribution of costs between the federal government, the states, and users.
Relevant background information indicates that the coalition agreement does not provide specific details about funding or financial planning for the programme beyond 2025. The agreement is unclear about the future funding mechanisms, long-term financial commitments, and changes to the funding structure, leaving significant questions about how the Germany Ticket will be financed and scaled in the upcoming years.
The Germany Ticket, due to its popularity, is believed to have a positive impact not just on local transport in Saxony, but also on the surrounding industries, such as finance and transportation. In the coalition agreement, it is stated that the Germany Ticket should continue beyond 2025, suggesting potential future involvement of the finance sector in the funding of this public transit option.
