The prospect of Italian low-cost rail operator Italo entering the German market is triggering concerns over a potential contraction in long-distance connectivity for smaller cities.

The German railway and transport union EVG has released an analysis warning that the arrival of the new competitor could lead to the disconnection of at least 16 cities from the national ICE and IC long-distance networks.

The union’s assessment suggests that the introduction of a new, likely lower-cost operator could force Deutsche Bahn to rationalize its route network.

In a competitive landscape, maintaining unprofitable long-distance links to smaller regional hubs becomes economically difficult when a leaner rival targets high-density corridors.

The EVG argues that this dynamic would effectively sever direct long-distance ties for the affected municipalities, leaving them reliant on slower regional services.

This development adds a layer of complexity to the ongoing debate over rail market liberalization in Germany.