Germany's state railway operator Deutsche Bahn is to be partially privatised after a compromise deal was worked out by the country's coalition government. Just under a quarter of passenger and freight operations should be sold by the end of this year. Stations and track will remain under government control.
The decision follows much wrangling, with the left opposed to any privatisation and the right wanting a 49.9% sell off. Frank-Walter Steinmeier, deputy head of the Social Democrats, said: "This shows the coalition was well prepared on this matter and produced the best outcome."
Deutsche Bahn was the last major state enterprise to face privatisation and under the German constitution the government has to retain a majority holding in the railways, but not everyone was happy with the compromise. Environmentalist, Gerd Rosenkranz, said: "The railroads form an integral part of the public service and should remain in the hands of the state, particularly as they are part of the environmental fight against climate change."
Berlin believes that up to eight billion euros will be raised by the sale. Two-thirds of the money will be used to boost Deutsche Bahn's capital and upgrade its infrastructure with the rest going into the general government budget.
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