The German government is set to provide Deutsche Bahn with a multi-billion-euro bailout to help offset the losses the rail company suffered as a result of the coronavirus crisis. Most of the money will be invested in DB’s rail infrastructure subsidiary, DB Netz AG.

German government to invest in Deutsche Bahn

The German government confirmed this week that it would bail out Deutsche Bahn to the tune of 2,1 billion euros. The bailout funds are to be invested in the state-owned rail company following a dire 18 months that saw the number of train passengers plummet due to the coronavirus pandemic.

The drop in passengers amounted to a loss of 2,9 billion euros in 2020, and a further 1,4 billion euros over the first half of 2021. To try and make up some of its losses, and to compensate for inflation, the rail operator has announced it will increase fares for its long-distance trains.

Bailout will also benefit some DB competitors

According to Enak Ferlemann, the Parliamentary State Secretary for Transport and Digital Infrastructure, an initial deal to provide DB with emergency funds was reached in July. He revealed that, as of mid-October, DB Netz had already received 537 million euros. Ferlemann also revealed that the EU had approved up to 3,77 billion euros, should it be needed.

The bailout is also expected to benefit Deutsche Bahn’s competitors, like Flixtrain, in the cargo and logistics branches, as they use the same rail infrastructure.