In Berlin, the construction industry has proposed a passenger car toll to fund Germany’s transport infrastructure. The proposal is driven by the need to renovate bridges, the susceptibility of railway lines to disruption, and investment shortfalls regarding waterways. Although the federal government plans to allocate around €34.4 billion for transport infrastructure in 2026, approximately €22 billion of this amount comes from a special fund with a limited lifespan. Consequently, without a source of permanent revenue, there is a risk of renewed budget cuts and construction project delays once that fund expires.
Car tolls are intended to secure investments in the long term
The construction industry demands a fixed financing cycle for every mode of transport. Revenue from road traffic should therefore flow predominantly into roads, bridges and rest areas. Additional budget resources are also intended to secure larger renovation programs. The association wants to make projects less dependent on annual budget decisions.
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Under the proposal, the federal highway company (Autobahn GmbH) would be permitted to take out a limited amount of loans. At the same time, Germany is to shift gradually toward a user-funded model. Consequently, a passenger car toll should not remain off-limits in the long term. However, drivers would need to be granted financial relief elsewhere. No concrete fee model has been presented so far.
Previous toll model failed to comply with EU law
A previous federal government had already approved an infrastructure levy. However, the European Court of Justice halted the scheme in June 2019. Under that plan, German vehicle owners were to be fully reimbursed for the cost via a reduction in vehicle tax, whereas foreign drivers would not have received such relief. The court deemed this to constitute impermissible discrimination.
A new model would have to treat vehicle owners from all EU member states equally. A reimbursement scheme applicable only to German drivers would therefore be legally untenable. General tax relief measures, by contrast, could theoretically be feasible, provided they applied regardless of nationality. Even so, commuters and residents of rural areas might still face a heavier financial burden.
Special fund partially replaces regular budget allocations
The federal government has significantly increased nominal investment in transport infrastructure. However, a substantial portion of this funding does not come from the regular transport budget. The construction industry criticizes this shift toward a debt-financed special fund, warning that once the fund expires, key renovation programs could once again be left without adequate resources.
The industry association estimates total infrastructure funding needs at over 600 billion euros for the period from 2025 to 2030. Furthermore, rising construction costs are diminishing the real-world impact of increased spending. For 2026, approximately 3.25 billion euros from the special fund have been earmarked for bridges and tunnels on federal trunk roads. Federal railway infrastructure is set to receive a total of around 21.9 billion euros, whereas only about 1.47 billion euros is allocated for federal waterways.
Construction Industry Calls for Rail and Waterway Funds
The construction industry is calling for a long-term rail fund. Additionally, a binding infrastructure plan should consolidate renovation work, digitalization efforts, and high-performance corridors. For federal waterways, the association is demanding a multi-year financial framework. This would allow projects ready for construction to launch without annual funding interruptions, while simultaneously providing ports and industrial facilities with greater planning certainty.
However, more money alone will not clear the backlog of renovation work. Approval processes, tendering procedures, and construction workflows also need to operate more quickly. Consequently, the construction industry is calling for digital project management and contract models based on stronger partnerships. It remains unclear whether the federal government will actually pursue the passenger car toll. Any new levy, however, would need to be fiscally viable and compliant with European law.
Author: Blackout News
Sources: Bauindustrie (12.06.26) – Welt (11.06.26) – Onvista (12.06.26) – Verkehrsrundschau (12.06.26)