ÖBB Annual Report 2025

47 Group Management Report Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 4 Capital markets and national budget The economic crisis and consequences of the expansive fiscal policy in recent years are also putting pressure on the public sector budget. The Austrian budget deficit amounted to 4.6% in 2025, with government debt rising to 81.8% of GDP. 11 In any case, the deficit is likely to be 4% by 2027 and therefore above the 3% mark of the EU stability criteria. Since 2016, the funds required for ÖBB-Infrastruktur AG’s infrastructure investments have been raised on the capital market by the Austrian Treasury (OeBFA). The financing costs are therefore determined by the interest rate of government bonds. 2025 brought no change to the European interest rate environment, with the ECB keeping the key interest rate stable at 2.15% for the year. Accordingly, the circulation-weighted average yield on Austrian government bonds has hardly changed. At 2.8%, this was in line with the prior year. Austria’s credit rating remains high. However, in view of the tense budget situation, several rating agencies have lowered their outlook to “negative.” 12 Political and regulatory framework ÖBB continuously analyzes the social, political and economic framework conditions in order to identify and help shape developments relevant to the corporate group. ÖBB’s concerns are communicated to stakeholders in the form of position papers and factsheets and presented transparently on the intranet. The relevant activities are regularly reported to the Executive Board and Supervisory Board committees in accordance with Group guidelines. Managing topics and setting agendas at national level In the 2025 financial year, ÖBB initially worked intensively to secure funding for infrastructure expansion as part of the government negotiations, the adoption of the next infrastructure expansion plan “Target Network 2040” and better framework conditions for rail freight transport. In the past financial year, this sector had to contend with a sharp decline in volumes, particularly as a result of the industrial recession. In addition, rail freight transport has come under great economic pressure in competition with truck transport. The 2025 / 2026 federal budget has secured the financial basis for the upgrade and maintenance of railway infrastructure, as well as for existing subsidies for rail freight transport. In addition, the full implementation of the Waste Management Act with regard to shifting waste transportation to rail was secured. Furthermore, the utilization of public subsidies for rail freight transport was made more efficient through internal improvement measures in data quality in 2025. The topics of “crisis resilience,” “security” and “military mobility” gained significant political importance at both national and European level in 2025. As an essential part of Austria’s critical infrastructure, ÖBB has been involved in shaping legislation on the resilience of critical infrastructures and NIS2. To this end, ÖBB has entered into a dialog with government and EU stakeholders on the potential contribution the rail system could make in securing military mobility in Austria and Europe. Another focus in the representation of ÖBB interests was the implementation of EU directives at national level, in particular on the topics of “energy efficiency,” “building refurbishment” and “nature restoration.” Further efforts were made to reduce bureaucracy and speed up approval procedures (High-Performance Lines Act, General Administrative Procedure Act, Environmental Impact Assessment Act) and to modernize railway law (Railways Act, Railway Crossing Ordinance). From February 2026, major rail corridors in Germany will be completely closed for several years for the general refurbishment of the DB railway network. In preparation for this, a broad dialog with industry, the media and stakeholders was launched in March 2025 in collaboration with social partners. To this end, dialog events were held in Upper Austria, Salzburg and Lower Austria as well as at government level. ÖBB has been pushing the expansion of renewable energy plants for traction power generation for several years in order to strengthen the resilience of the railway system and reduce dependence on the electricity market. To support this goal, ÖBB is actively involved in shaping the relevant legislation on an ongoing basis. In 2025, this included in particular the Renewable Energy Expansion Acceleration Act (EABG) and the new Electricity Industry Act (ElWG). Both laws concern approval procedures for the expansion of energy plants as well as the affordability of electricity, although only the Electricity Industry Act has so far been finalized with a parliamentary resolution in December 2025. 11 WIFO. 12 OeBFA. MR4 |