ÖBB and Federation of Austrian Industries Demand 500 billion Euros from Brussels for European Rail Expansion
In a joint initiative, the CEO of the Austrian Federal Railways (ÖBB), Andreas Matthä, and the Chief Economist of the Federation of Austrian Industries (IV), Christian Helmenstein, have called on the European Union to invest around 500 billion euros in the modernization and expansion of rail infrastructure by 2030. This appeal was presented to MEPs in Brussels.
The appeal was presented to MEPs in Brussels. / Picture: © Flickr / Dimitar Nikolov / [CC BY-SA 2.0(https://creativecommons.org/licenses/by-sa/2.0/)]
The European Union is facing major challenges in transport policy. Given increasing mobility requirements, climate change, and the need to make freight transport more efficient, leading representatives of Austrian business and the rail industry are calling for massive investment in the European rail infrastructure.
The CEO of the Austrian Federal Railways (ÖBB), Andreas Matthä, and the Chief Economist of the Federation of Austrian Industries (IV), Christian Helmenstein, presented a joint strategy paper in Brussels. In it, they call for investments of 500 billion euros by 2030 for the expansion and modernization of rail infrastructure in the EU. “The EU must now invest quickly and boldly in efficient, modern infrastructure - especially in the rail sector,” Matthä and Helmenstein told MEPs in the European Parliament.
Investment backlog jeopardizes transport turnaround
According to the two experts, investment in European infrastructure has stagnated since 2000, which is particularly problematic in the rail sector, as the shift of traffic from road to rail plays a key role in the European climate strategy. The joint paper by ÖBB and IV emphasizes that the expansion of the trans-European transport networks (TEN-T) is crucial for the economic future of the EU.
The TEN-T network is a central component of European infrastructure policy. It comprises high-speed connections, cross-border corridors, and multimodal transport hubs. The aim is to make transport routes between member states more efficient and at the same time reduce environmental pollution. However, the financing of this program is always the subject of political debate.
Austria as a role model for Europe?
In this context, ÖBB refers to its own investments: 21.1 billion euros have been earmarked for rail expansion in Austria in the 2024-2029 framework plan. This makes the country a pioneer in Europe. “Austria has set a benchmark for Europe with its strategy,” said Matthä. Now the EU must follow suit to make the entire continent fit for the future.
The Alpine country in particular is focusing on the expansion of international rail connections. Projects such as the modernization of the Western Railway line, the expansion of the Brenner Base Tunnel, and new night train connections to major European cities show that a targeted rail policy not only makes ecological but also economic sense.
Economy and climate protection benefit
According to Christian Helmenstein, investments in rail infrastructure are one of the few measures that offer both economic and ecological benefits. “A modern railroad not only means greater efficiency in passenger and freight transport but also a reduction in CO₂ emissions and a strengthening of the competitiveness of the European economy,” he emphasized.
The expansion of the railroads could also contribute to the creation of new jobs in the construction, technology, and transport sectors. At the same time, a well-developed infrastructure increases the attractiveness of locations and facilitates access to new markets.
Trade union demands better working conditions
While ÖBB and the Federation of Austrian Industry are focusing on the financial aspects, the trade union vida warns against neglecting the human factor, as reported by ORF. “No train runs without people. For the investments to bear fruit, the railroad sector urgently needs to be made more attractive for employees,” explained Gerhard Tauchner, Chairman of the Railway Division of the vida trade union.
In the coming years, numerous railroad workers will retire in many European countries. At the same time, it is becoming increasingly difficult for the industry to attract young people to careers in the rail sector. Tauchner is therefore calling for targeted investment in better working conditions, higher wages, and more attractive training programs.
Increasing political pressure on the EU
Negotiations on the next multi-year EU budget will begin in the fall. Matthä and Helmenstein are appealing to political decision-makers to make the rail sector a top priority. “Europe cannot afford to make savings on infrastructure,” the two warn. The European Commission has already emphasized several times that rail expansion should play a central role in the EU's “Green Deal”. Nevertheless, there is often a lack of political will to provide the necessary funding. With their initiative, ÖBB and the IV now want to exert pressure on EU policy to ensure that the necessary investments are not delayed any further. “Now is the time to make the right decisions for sustainable mobility in Europe,” concludes Matthä.
The appeal by ÖBB and IV makes it clear that the modernization of the European rail infrastructure is a central challenge for the coming years. The 500 billion euros demanded should not only make the transport sector future-proof but also contribute to achieving the climate targets and strengthening the European economy. The upcoming budget negotiations will show whether the EU will meet these demands at a time when many urgent challenges need to be solved and the economic situation is tightening the budget.