Friday, April 1, 2011

Germany: €4.1 Billion Project on Ice?


Massive rail transportation project "Stuttgart 21" in Stuttgart Germany aims to rebuild the central train station in the capital of the state of Baden-Württemberg and make Stuttgart a European transport hub. The ambitious project, strongly backed by Germany's Chancellor Merkel, includes the creation of 16 new tunnels, 18 new bridges, 60 kilometres of new train track and three new train stations, including a new underground through-station. The project has been fraught with controversy, punctuated by police use of water cannons and pepper spray against protesters in September of 2010. This week, the environmental Green party and the left-wing Social Democratic Party (SPD) swept Merkel's party from power in Baden-Württemberg, putting the future of the multi-billion Euro rail project in jeopardy.

Opposition groups claim that the project should be halted despite the €1.5 billion already spent, for a number of reasons. Like many federal, state and local tax-payer funded projects in this economic downturn, it is anticipated that this project will be underfunded due to recent budget-slashing measures. This may only exacerbate what many feel are project cost and schedule projections based on poor estimates. Supporters of the project feel it would transform Stuttgart into “the new heart of Europe”, and provide thousand of jobs.

It is still too early to tell what Stuttgart 21's fate will be. As of Friday, Germany Rail authorities began inquiring as to the penalties the government may face if the project were to be canceled. Still, the final decision rests with Germany's federal government and the Rail authorities; and while the Green party is opposed to the project, it appears that the SPD is not. I will be watching this one, and will provide updates as they develop.

Photo Credit: The Local

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