The German summer of free train travel is almost over

Germany’s three-month trial of ultra-cheap public transport is leaving many shoppers wanting.

A 9-euro ($9.20) monthly ticket allows travel anywhere on regional trains, trams and buses, in an effort to help with the cost of living and reduce car use due to rising energy costs. The more than 30 km long train journey has seen a 42 percent increase in popularity compared to 2019. Train travel to rural tourist spots in Germany has doubled.

The heavily discounted tickets expire at the end of August, and some politicians want it extended somewhat. In a Kantar poll last month, nearly 80% of respondents supported that idea.

Passengers wait on the Berlin platform of Berlin Central Station on June 1. Sorry Christian.Bloomberg

But the person in charge of the country’s finances is reluctant. Christian Lindner caused a stir on Twitter last week when he criticized the “libertarian mentality” of citizens, and argued that such subsidies could not be funded sustainably in the long term. The 3-month grant cost the government about 2.5 billion euros.

However, it helped to limit inflation. The German Economic Institute in Cologne estimates that core price growth would have been 2 percent higher in June if government spending more closely reflected overall inflation. The provision of public transport has significantly reduced these costs.

“Obviously it had an inflationary effect. But if the money is meant to address inflation for the poor, it’s fair to ask whether the money could not be used more effectively if direct transfers are more likely to benefit,” said Melinda Fremere, the institute’s research author. They must decide whether to pursue an asset policy or hedge against inflation.

Some holiday destinations in Germany appear to have benefited from a boost in out-of-town visitors since the introduction of the €9 ticket. The Baltic Sea port of Stralsund saw a 43 percent increase in card transactions in July, up from 36 percent last year, according to data from payments provider Sumup.

More recently, there has been considerable debate about its impact on travel habits. Lindner, from the business-friendly FDP party, pointed to arguments that it led mainly to more leisure travel, with very little reduction in regular car trips such as commuting. It suggests that transport systems are under more pressure as a result of the cuts.

A study in Munich found that only 3 percent of the city’s residents used the car less after the ticketing, while more than a third said they increased their use of public transportation. However, the researchers found that 22% were taking trains and buses for the first time, which may encourage them to use those options more in the future.

Proponents of the measure argued that the increase in leisure travel due to the summer season was an obvious result.

Linner’s Green and Social Democratic coalition partners are pushing to launch a successor ticket after the end of August.

One of the key reasons for extending the discount somewhat is that Germany, like many places, is not facing the worst inflation yet. As winter approaches, people will spend more to heat their homes, and further reductions in gas supplies to Russia could further increase domestic energy costs.

German Transport Minister Volker Wissing, a member of the Leinster FDP, wants the measure extended.

“With this ticket, we were able to have 20% more passengers without changing anything in the service,” Goslar said on Thursday. “People are changing their consciousness and changing their behavior, which is why we need to have the courage to initiate disruptive change processes, not only in terms of regulation, but also in practice and in thought and courage.”

The government has two main options: extend the ticket as it stands or wait for a revised version as it is too late for transport companies to issue alternative passes for September.

But Linner supports policies that directly increase disposable income, such as adjusting tax brackets to account for inflation. That could provide even wider relief in a country where only a third of the population is regularly served by bus and train options.

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