Luxembourg earmarks €3.5bn for transport and infrastructure in 2026

Luxembourg’s Ministry of Mobility and Public Works is set for one of the largest budget envelopes in 2026, with planned spending reaching €3.5 billion — equal to 11.5% of the entire state budget. The figures were reviewed by members of Parliament on Thursday during committee discussions on next year’s financial plan. According to Mobility Minister Yuriko Backes, the 8% rise in the ministry’s budget — an additional €290 million — is mainly driven by “major investment projects” scheduled for the coming year.

Capital investment will surge by 31%, while operational costs are expected to total around €1.7 billion. A significant share will go toward running the country’s public transport networks, with €634 million dedicated to rail services and €600 million to road-based transport.

Special funds will also play a key role. The Rail Fund will receive €742 million, including €119 million earmarked for upgrading the Luxembourg–Bettembourg railway line to a double-track configuration, a project due for completion in 2027. The Roads Fund will be allocated €382 million to advance major projects: the three-lane expansion of the A3, ongoing construction along the N7, and new bypasses for Hosingen, Dippach-Gare and other localities. Additional funding will support progress on the rapid tram linking Luxembourg City to the south, as well as extensions of the tram network within the capital. At Findel, €44 million has been set aside to build a hybrid air-traffic control tower.

Beyond transport, the ministry will invest heavily in modernising public buildings. €336 million has been budgeted for 2026, with spending expected to rise to €622 million by 2029. The priority in the coming years will be improving the energy efficiency of state-owned infrastructure.
Read More : 2026 Mobility Budget: Investments up 31% | Chamber of Deputies of the Grand Duchy of Luxembourg
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