Germany's Infrastructure Crisis: Why a road toll for all is inevitable

The collapse of Dresden's Carola Bridge is far more than a local tragedy - it is a symbol of the state of a nation that is increasingly abandoning itself to decay. Germany, once proud of its engineering skills and praised as a haven of flawless infrastructure, has turned into a "pothole nation" and a "crumbling republic".

The decades-long ("mis")allocation of billions in tax revenue in the federal budget and the postponement of urgently needed investments and innovations are leading to progressive infrastructure wear and tear, which is now leaving clearly visible traces. Where Germany once shone in the global competitive rankings, there is now a massive decline in international competitiveness - a disgrace for a country that always saw itself as a pioneer.

Investment data confirms this alarming trend. In 2022, public infrastructure investment across all levels of government accounted for only 2.6% of real GDP—1% below the OECD average. Worse, net fixed investment has stagnated around 0% since 2000, meaning new spending barely offsets depreciation.

The financial gap is staggering. The Cologne Institute for Economic Research estimates that Germany will need an additional €65 billion for federal road infrastructure in the next legislative period, with another €88 billion required for municipal transport networks. The German Institute of Urban Affairs goes even further, estimating a €300 billion investment need for municipal roads by 2030.

Germany cannot afford to continue neglecting its infrastructure. The collapse of the Carola Bridge is a wake-up call—proof that past complacency has led to a crumbling foundation. A sustainable financing solution is needed, and a car toll must be part of the equation. If Germany is to reclaim its reputation as an infrastructure leader, decisive action is required now.

Read our full story on how a road toll for all vehicles in Germany could be planned and implemented (currently under revision)

Title:

Ailing Miles: The battle for Germanys' road treasures

Release Date:

January 2025

Authors:

Dr. Rainer Scholz; Tobias Merten