EU transport budget faces €5.2 billion cut as German rail freight charges rise

20.10.2026

European transport organisations are warning that the proposed EU budget for 2028–2034 would reduce infrastructure investment just as rail freight operators face increasing operating costs.

A coalition of 39 organisations has called for the transport allocation under the Connecting Europe Facility (CEF) to be restored after the Irish Presidency proposed reducing it from €45.8 billion to €40.6 billion.

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The proposed 11% reduction is larger than the 8% cut to the overall Multiannual Financial Framework under negotiation. According to the organisations, the revised budget would leave less than €4 billion annually for civilian transport infrastructure across the EU’s 27 Member States, potentially affecting cross-border railway projects and the completion of the TEN-T network. The signatories include CER, ERFA, UIP, UIRR, UNIFE and AERRL. The reduction remains a negotiating proposal rather than an approved budget.

The funding debate comes alongside developments affecting the competitive position of rail freight. On 5 October, DB InfraGO announced plans to increase German freight train path charges by 12.9% in 2027. Two days later, the European Parliament approved legislation allowing Member States to maintain toll exemptions for zero-emission heavy goods vehicles until June 2031 and, under specified conditions, reductions of up to 75% for low-emission vehicles. These road toll concessions are optional and do not apply to the entire trucking sector.

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The International Union of Wagon Keepers (UIP) argues that the combination of higher railway charges and incentives for low-emission road transport could weaken rail’s competitive position. For wagon leasing companies, any resulting loss of rail freight volumes could mean lower fleet utilisation. However, the actual effect on modal shift will depend on national road charging policies, railway pricing and customers’ transport costs. The organisations are asking EU governments to restore the CEF allocation and protect transport funding within other European investment programmes.

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