Who has to pay for the additional costs of Stuttgart 21? The project partners have been legally arguing about this for a year. The administrative court in Stuttgart now sees the railway as having an obligation. She probably wants to appeal the verdict.
The state of Baden-Württemberg, the city of Stuttgart, the Stuttgart Region Association and Stuttgart Airport do not have to contribute to the additional costs of the Stuttgart 21 rail project. The administrative court in Stuttgart announced this on Tuesday afternoon. Corresponding complaints from the railway were dismissed. The company also has to bear the costs of the procedure.
Bahn is considering appealing the verdict
The lawsuits were partly inadmissible and partly admissible, but unfounded, said presiding judge Wolfgang Kern when announcing the verdict. The case had been in court for a year whether the railway has to bear the additional costs of currently around seven billion euros alone or whether the project partners have to share in the additional costs. Overall, the railway expects the project to cost around 11.5 billion euros. The railway had already announced before the court decision that it would appeal the verdict in the event of a defeat. After the verdict, Bahn company spokesman Achim Stauß told SWR that they are now waiting for the final verdict and will then examine what further steps can be taken.
Dispute S21 additional costs and “speaking clause”
It was still unclear who would bear the additional costs. The project partners had agreed on a so-called speaking clause. But what exactly was meant by this was controversial. The railway assumed a “joint financial responsibility”. This means that, according to Bahn, the speaking clause would have given rise to a claim to further financing participation. The project partners saw it differently and argued that fixed amounts had been agreed.
Participating in the additional costs would have meant massive burdens for the project partners. The city of Stuttgart had potential in a negotiation negative consequences for the municipal budget warned. If there is a stake, the investments would have to be stopped for a longer period of time, a city representative emphasized to the administrative court. The other project partners also pointed out possible negative consequences for their budgets. According to information from the Ministry of Transport, the state of Baden-Württemberg would have incurred additional costs of around 2.8 billion euros if it were to participate.
It is certainly a very unusual procedure in the history of the Federal Republic.
Henning Berger, lawyer for the state of Baden-Württemberg
Representatives of the city of Stuttgart and the state welcomed the verdict. They described the process as extraordinary – in many ways. For example, the lawyer for the state of Baden-Württemberg, Henning Berger, referred to the length of the process: “The lawsuit was filed in 2016, we will receive the verdict in 2024. There were four oral negotiations last year and this year. The parties have an incredible amount on the history of the contract and its further development.”
What does the ruling mean for the railway?
The fact that, according to the ruling, the railway alone has to bear the entire additional costs of seven billion euros could have consequences. Railway spokesman Stauß remained very vague after the verdict. He doesn’t want to say anything about other projects. But one thing is clear: the railway has financial problems. One must not forget: The total costs of 11.5 billion euros for Stuttgart 21 will not be paid in one fell swoop. According to the railway, the majority has already been accounted for. But the basic problem remains: the railway has to accommodate the seven billion euros in additional costs in its budget over the years.
The judgment must therefore also be viewed in the overall context of the railways in Germany. 12.5 billion euros were originally supposed to flow into the railways from the Climate and Transformation Fund Act. This should be used to finance renovation work and new construction projects. According to the budget verdict, the railway will be missing these billions in the coming years. Although the federal government will also provide the railway with more funds in 2024 than in the previous year – a total of over 17 billion euros – only just under 1.7 billion of this is earmarked for new construction and expansion. It’s easy to see that money is running out.
Judgment announced before the administrative court in Stuttgart: The railway must bear the additional costs for the S21 alone.
Experts: Railways must prioritize which projects can be financed
Experts fear that sooner or later the railway will have to prioritize which new construction projects are still feasible and which will have to be put on hold for the time being. Projects in Baden-Württemberg such as the new Frankfurt – Mannheim line could also be affected. Or near Stuttgart, the construction of the so-called Pfaffenstieg Tunnel (a follow-up project to Stuttgart 21, which is intended to connect the south of Baden-Württemberg to the state capital after the underground station is completed). A former railway manager told SWR that one should not expect that the transport ministers of the other federal states would accept that the majority of investments would once again go to Baden-Württemberg. The route network also urgently needs to be expanded in northern Germany, such as between Hamburg and Hanover.
Stuttgart 21: Costs have exploded in recent years
There are currently around seven billion euros in additional costs. Because it was only in December 2023 that the railway announced that that the cost framework was broken again. The entire project currently costs a total of 11.5 billion euros. At the same time, the opening date is wobbling. It is already clear that Stuttgart 21 cannot open next year as previously planned. But every delay automatically brings with it further cost increases. Cost increases that someone has to pay in the end.
Broadcast on Tuesday, May 7, 2024, 2:00 p.m., SWR4 in the afternoon, SWR4