The German government on Tuesday agreed on a proposal to sell a minority of stakes of state-owned rail operator, Deutsche Bahn AG.
German Transport Minister Wolfgang Tiefensee, who had presented the proposal to the cabinet, told a press conference that 20-25 percent of stakes would be sold, but he declined to estimate the amount of revenue the sale could bring.
Privatization of Deutsche Bahn AG has been under discussion for over ten years as large state-owned enterprises, such as the Deutsche Telekom telephone utility and the Deutsche Post postal service, has been sold out.
Deutsche Bahn AG wants the privatization to raise money and to prepare for the opening of international rail travel to competition, as mandated by the European Union, in 2010.
However, as the railway sector has employed over 230,000 people, the proposal has raised concerns over job cuts.
The proposal has to be approved by German parliament before it becomes a law, but the coalition government led by Chancellor Angela Merkel has a large majority within the congress.
Source: Xinhua
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