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Subsidies - Row over Germany’s public transport ticket jumping from €9 to €49

Graham Watson

4th November 2022

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The state subsidising public transport in Germany has become a live political issue after the federal government announced a new monthly ticket for 49 euros.

However, last summer, the same ticket was 9 euros and anti-poverty campaigners argue that the new ticket is beyond the means of the economy's poorest.

It's a lovely example of the distributional effects of a subsidy: the intention is good, but it seems that the majority of the benefits are going to be enjoyed by the middle-class, not Germany's poor.

Probably worth noting that the Euro 49 per month ticket covers the entirety of Germany and not just one city!

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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