Government to Put Deutsche Bahn on a Budget

Deutsche Bahn, the German railway system, will have to make due with less, according to a report in Friday’s Financial Times Germany. The cuts could result in a massive decrease in the government subsidies -- up to €16 billion over the next five years -- allocated for rail maintenance. In the past few years, the government has funded the rails to the tune of €4,5 billion annually, so yearly cuts averaging €3 billion will hurt. As a result, new building and expansion projects may be scaled back or cut entirely. This may postpone Deutsche Bahn’s first public offering on the stock market. A noticeable drop off in re-investment and renewal may frighten investors.