{"id":70277,"date":"2026-08-11T07:28:33","date_gmt":"2026-08-11T07:28:33","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/70277\/"},"modified":"2026-08-11T07:28:33","modified_gmt":"2026-08-11T07:28:33","slug":"germany-launches-a-funding-scheme-for-the-installation-of-ertms-on-board-vehicles","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/70277\/","title":{"rendered":"Germany launches a funding scheme for the installation of ERTMS on board vehicles"},"content":{"rendered":"

\"\"Photo: Deutsche Bahn AG \/ Volker Emersleben<\/p>\n

In July 2026, Germany launched one of the most significant funding schemes for the digitalisation of rolling stock: approximately EUR 1.7 billion by 2030 to fit existing rail vehicles with ERTMS.<\/p>\n

Added to this sum is approximately EUR 482 million for rolling stock used in the \u2018Stuttgart Digital Hub\u2019 programme, in the capital of the state of Baden-W\u00fcrttemberg.<\/p>\n

This investment must be viewed in conjunction with the modernisation of Germany\u2019s railway infrastructure<\/a>. ERTMS does not function as a stand-alone piece of equipment installed on locomotives and trains, but as an integrated system linking the vehicle, the track, control centres and railway communications. A train equipped with ETCS cannot utilise infrastructure that still operates on national systems to its full capacity, and a digitised line cannot deliver its full benefits if operators do not have sufficient compatible rolling stock.<\/p>\n

European data shows that the roll-out of ERTMS in Germany is lagging behind. According to the ERTMS Work Plan drawn up by the European Coordinator Matthias Ruete, by the end of 2024, Germany had ETCS in operation on 445 km of the TEN-T network, i.e. approximately 5 per cent of the network analysed. In contrast, GSM-R was operational on 14,702 km, equivalent to 97 per cent of the German TEN-T network.<\/p>\n

\"\"Source: ERTMS \u2013 Third Work Plan of the European Coordinator Matthias Ruete, February 2026.<\/p>\n

The difference between GSM-R and ETCS is crucial, as Germany has almost completed the radio communications infrastructure required for modern operations, but the train control and protection system is being implemented at a much slower pace.<\/p>\n

The announced funding focuses on rolling stock<\/p>\n

The federal scheme was published in the German Federal Gazette in July 2026 and sets out the funding conditions for retrofitting vehicles with ERTMS components. The central element of the directive is the division of projects into three categories. Germany does not treat the development of the first technical solution, the retrofitting of a fleet and the adaptation of an existing solution in the same way.<\/p>\n

The directive differentiates the level of support according to the technical stage of the project<\/p>\n

\"\"* The German directive stipulates that, under the Delta procedure, the additional FoC-type component may receive up to 90%, whilst the other eligible measures carried out on the vehicle may receive up to 60%.<\/p>\n

In the case of FoC, the high level of funding is justified by the fact that the first vehicle bears the greatest risks and costs: design, systems integration, testing, assessment and authorisation. Once the solution has been validated, it can be transferred to several vehicles of the same design variant.<\/p>\n

If an operator has an approved ETCS solution, but another vehicle has differences in software, hardware or electrical architecture, it is not necessary to completely redo the project. Technical adaptation is funded separately, at up to 90 per cent, and standard fitting at up to 60 per cent.<\/p>\n

The subsidy is awarded as a non-repayable grant and applies to eligible expenditure directly related to the fitting out of the vehicle. The programme is administered by the competent federal authority, and applications must be submitted in good time, as the directive is valid until 31 December 2030, whilst the general deadline for applications is 30 June 2030.<\/p>\n

Projects commenced before the funding decision was issued are, in principle, not eligible.<\/p>\n

The costs of installing ERTMS on existing trains have risen significantly<\/p>\n

The German government\u2019s decision is justified by the rapid rise in the costs of fitting ERTMS. According to the European Commission\u2019s study, between 2018 and 2022, the average cost of installing the ERTMS system on an existing vehicle for the first time (retrofitting) doubled, rising from approximately EUR 450,000 to EUR 900,000 per vehicle.<\/p>\n

During the same period, the average cost of upgrading existing ERTMS equipment \u2013 for example, upgrading to a newer version of the system \u2013 rose from around EUR 200,000 to EUR 400,000 per vehicle.<\/p>\n

The costs do not stem solely from the price of the equipment; the European report on ERTMS divides the project into three phases:<\/p>\n

Design and development: 20\u201330%
\nInstallation and vehicle adaptation: 40\u201350%
\nValidation and authorisation: 20\u201330%<\/p>\n

For a fleet of 20 vehicles, the report estimates a project cost of EUR 18 million, i.e. an average of around EUR 900,000 per vehicle. Costs may be higher for small batches, prototype vehicles or trains operating across several countries.<\/p>\n

One of the most significant obstacles is the lack of standardisation among existing vehicles. Each type of train has its own architecture, different technical documentation and specific interfaces with control systems. Furthermore, trains must remain compatible with national Class B systems for as long as these continue to be used on the network.<\/p>\n

\"\"Photo: NordWestBahn<\/p>\n

The European Commission also identifies other sources of cost, such as differing national requirements, incomplete or outdated technical documentation, the lack of a standard interface between the rolling stock and ERTMS equipment, a limited number of suppliers and restricted competition, long periods of rolling stock unavailability, and authorisation procedures that can take up to three or four years.<\/p>\n

Under these circumstances, German federal funding is not merely compensation for the purchase of equipment. It aims to reduce the risk associated with initial development, so that technical solutions can be reused across larger vehicle fleets.<\/p>\n

Deutsche Bahn must coordinate digitalisation<\/p>\n

Deutsche Bahn is the main potential beneficiary of the programme, but responsibility does not lie solely with it. DB InfraGO coordinates infrastructure development and the roll-out of ETCS on priority routes and within the core TEN-T network, whilst the fitting out of rolling stock falls under the responsibility of the railway operators.<\/p>\n

DB has already linked the digitalisation of the infrastructure to increasing capacity without the immediate construction of new lines. The company is fitting vehicles with ETCS to make more efficient use of the existing network, and the modernisation of ICE trains also includes the transition of some vehicles to ETCS Baseline 3.<\/p>\n

For DB, the previously outlined plan is to equip its entire fleet with ETCS by 2030 at the latest; for new trains, the installation of the system is integrated into the manufacturing process. The more complex issue concerns existing trains and rolling stock, where each series may require its own technical solution and a new authorisation procedure.<\/p>\n

Deutsche Bahn has also announced plans for ETCS Level 2 without traditional signals on approximately 750 km of lines by the end of 2031. Only trains fitted with the necessary on-board technology will be able to run on these routes.<\/p>\n

This example clearly illustrates why the infrastructure and rolling stock must be modernised simultaneously. If a line switches to ETCS without traditional signals, locomotives that are not equipped with the system can no longer operate on that section. For operators, this may mean purchasing or leasing compatible locomotives, temporarily withdrawing certain trains from service, or making urgent investments in retrofitting the system onto vehicles.<\/p>\n

\"\"The first Mireo Plus B hybrid train from Siemens Mobility entered service in Germany in 2024. The train is equipped with ERTMS\/ETCS Level 2. Photo: Siemens Mobility<\/p>\n

The pressure is not limited to DB, but also extends to regional passenger and freight operators, as well as rolling stock owners who must prepare vehicles that operate on different networks. A freight locomotive used on international corridors may require configurations compatible with multiple infrastructures, operational rules and ETCS versions.<\/p>\n

At European level, approximately 8,731 vehicles were fitted with ETCS by the end of 2024, representing around 19 per cent of the estimated fleet of 45,060 vehicles. By 2030, this figure could reach approximately 18,000 vehicles, or 40 per cent of the fleet.<\/p>\n

In this context, Germany cannot close the gap solely through the purchase of new trains<\/a>. A significant proportion of the rolling stock will remain in service for many years to come, and retrofitting is becoming essential for locomotives, railcars, regional trains and freight rolling stock.<\/p>\n

Germany\u2019s ETCS target vs TEN-T network equipped<\/p>\n

2024 \u2013 5%
\n2030 \u2013 24%
\n2035 \u2013 43%
\n2040 \u2013 51%
\n2050 \u2013 98%<\/p>\n

The European Commission\u2019s projections show that Germany could reach 43% of the TEN-T network equipped with ETCS by 2035, 51% by 2040 and approximately 98% by 2050. For 2030, however, the target is far more modest than the European requirement to digitise the core network, and the ERTMS report considers the German plan difficult to achieve given the size of the network and the current pace of progress.<\/p>\n

Without compatible trains, Germany\u2019s digitisation remains stalled<\/p>\n

The EUR 1.7 billion programme offers Germany a real opportunity to remove one of the biggest barriers to digitalisation: the insufficient number of ETCS-compatible trains. However, funding alone does not guarantee success.<\/p>\n

For the investment to have an impact, Germany must coordinate four processes: equipping rolling stock, modernising infrastructure, technical authorisation and standardising solutions. The establishment of the ERTMS Office in April 2026<\/a> is specifically intended to coordinate these projects and reduce the risk of trains and lines being ready at different times.<\/p>\n

The true value of the directive in the German Official Gazette therefore lies not merely in the funding percentage. The FoC\u2013series\u2013Delta scheme shows that Germany is seeking to transform the procedure for installing ERTMS on board existing vehicles from a succession of individual and costly projects into an industrially scalable process. If the solutions developed for the first vehicle can be transferred to entire series, public funds will have a multiplier effect.<\/p>\n

However, if testing, authorisation and integration with the infrastructure remain fragmented, Germany may end up investing simultaneously in digital lines and in equipped trains, without quickly reaping the main benefit of ERTMS: interoperability, greater capacity and more reliable services across a European rail network.<\/p>\n

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