Regeneration and modernization of railway infrastructure: 1.5 billion euros more from 2027
If France can be proud of its high-speed lines (LGV), the classic rail network is aging, which leads to speed limits on many sections or even the closure of the sections most at risk. Although the owner of the railway network, SNCF Réseau, is a public limited company (and therefore financially autonomous, on paper), the government has decided to subsidize the modernization of the railways even more heavily, in the name of decarbonising transport. By 2040, the government therefore intends to devote 100 billion euros to the various modernization projects for rail infrastructure across France.
Currently, the State devotes 3 billion euros per year to the maintenance and modernization of rail infrastructure. From 2027, it will put on the table an additional 1 billion euros per year for the regeneration of the network and 500 million euros per year for its modernization. “For our fellow citizens, modernizing the network will mean more trains, better punctuality and shorter journey times. […] It is when our fellow citizens can find regular, easily accessible and reliable public transport that they will be able to reduce their car use,” said Élisabeth Borne on Friday, February 24, 2023.
New taxes to finance the modernization of the rail network
So how will this expense be funded? “Revenues from motorways should be able to help the development of rail, combined transport, intermodality and cycling rather than going to funding roads alone,” said Élisabeth Borne. In other words, no should expect a new specific tax on motorway concessionaires. And that’s not all. “Several motorway concessions will expire from 2031, this will be an opportunity to rethink our models”, continued the Prime Minister.
Asked by Le Figaro the next day, Clément Beaune, the Minister Delegate for Transport, said that local taxes, affecting individuals, are not to be excluded either. “The Occitanie and Nouvelle-Aquitaine regions have told us that they are ready to put in place some heavy targeted taxes,” he said, mentioning in particular an upcoming increase in the tourist tax in these regions in order to contribute to the financing of the LGV Bordeaux-Toulouse.