State Subsidies and National Ticketing Systems for Public Transport
Jens Portinson Hylander and Till Koglin have recently published the K2 report A New Deal for Public Transport? A Mapping and Case Study of New European State Subsidies and National Ticketing Systems for Public Transport, in which they examine how several European countries have introduced new state-level interventions in public transport. These initiatives aim to make public transport more affordable and accessible, reduce the climate impact of transport, or—as in Germany’s case—curb inflation.
Their mapping reveals that nearly one-third of EU countries, along with the United Kingdom, have introduced some form of state subsidy for local and regional public transport in recent years.
“Both the COVID-19 pandemic and the inflationary pressures following Russia’s invasion of Ukraine have led to extensive state subsidies in many European countries. These subsidies represent a break from previously established practices in the public transport sector,” says Jens Portinson Hylander.
The design of these new subsidies varies widely—from completely fare-free public transport in Luxembourg and Malta to more limited subsidies for regional rail travel in Portugal and Hungary. The introduction of state subsidies has often been accompanied by new national ticketing systems aimed at simplifying travel across entire countries. Austria’s KlimaTicket, launched in 2021, was preceded by years of investment in the rail network, while Germany’s 9-Euro-Ticket was introduced without comparable preparation.
“Public transport use increased in both Germany and Austria, but Austria’s long-term, strategic approach provided better conditions for the launch of the KlimaTicket. A sustainable transport system requires ongoing investment in infrastructure, accessible ticketing systems, and attractive fare levels,” Jens explains.
The Swedish government inquiry A National Ticketing System for All Public Transport (SOU 2020:25) also concluded that Sweden would benefit from a national ticketing system that integrates public transport across the country.
“Creating the right conditions for seamless public transport is essential for a sustainable transport system. Regardless of one’s view on increased state subsidies, the inquiry provides a solid foundation for designing a national ticketing system in Sweden—and the work already initiated should be continued,” argues Jens Portinson Hylander.
In Sweden, the cost of public transport has in recent years increased more rapidly than the cost of equivalent car travel. Austria’s KlimaTicket and Germany’s 9-Euro-Ticket are examples of initiatives that have significantly improved the economic attractiveness of public transport.
“When the state introduces new subsidies, it affects not only pricing but also the entire market logic of public transport. It reshapes how we perceive the role of public transport in society,” Jens concludes.
Read more in the K2 report (including extended abstract in English): En ny giv för kollektivtrafiken: en kartläggning och fallstudie av nya europeiska statliga subventioner och nationella biljettsystem för kollektivtrafik.