Road investment expenditure across Europe fluctuated in the wake of the pandemic, with uneven recovery across regions and spending priorities shifting between new construction and maintenance.
Why road investment matters
Roads form the backbone of transport and economic systems, connecting people, goods, and markets across communities and diverse geographies. From a social perspective, a well-developed road network enables people to move freely and engage in social and community life. Economically, a high-quality road system is vital for the efficient movement of goods and people, fostering productivity, trade, and overall prosperity. Moreover, investment in road infrastructure enhances connectivity between rural and urban areas, thereby improving accessibility and supporting more inclusive access and mobility.
Yet the extent to which countries sustain these benefits depends on how consistently they invest in maintaining and upgrading their road networks. The newly released IRF World Road Statistics (WRS) provide fresh insights into how road investment expenditure in Europe has evolved over the period 2018-2023, revealing how national budgets have responded to economic shocks, policy shifts and recovery efforts.
Peaks and plateaus of road investments in Europe
An overview of the inflation-adjusted road expenditure data for European countries between 2018 and 2023 shows a general decline in new construction as well as in maintenance projects, punctuated by a sharp increase of construction and maintenance in 2020 (Figure 1). This spike coincides with the onset of the COVID-19 pandemic and may reflect early fiscal stimulus and reallocation of public funds aimed at stimulating economic activity as a response to lockdowns halting many activities. The following years show a general downward trend, before a modest rebound in 2023. Overall, despite temporary increases, road construction and maintenance expenditure remained below pre-pandemic growth levels by the end of the period.
Country-level data from the WRS indicate that most countries have increased their spending, either to invest in new road infrastructure or to maintain existing assets. A geographical comparison reveals that countries in Eastern Europe and the Balkans recorded the most significant increases, while several Central and Western European countries experienced only modest growth or even slight reductions in some cases. It is important to note that this period includes the COVID-19 pandemic, during which travel restrictions temporarily reduced mobility and, consequently, may have influenced infrastructure spending patterns – either by delaying projects or prompting governments to reprioritise investments.
Who Spends More, and Why
Beyond total expenditure levels, comparing road expenditure to national GDP reveals how countries prioritise infrastructure within their broader economic strategies. Across Europe, road construction and maintenance expenditure account for around 1% of GDP on average, underscoring the sector’s economic significance (Figure 2). Albania stands out, dedicating nearly 2% of its GDP to road expenditure in both 2021 and 2023 – a reflection of its sustained, decade-long effort to enhance road quality and capacity. Similar upward trends are observed in Croatia, the Czech Republic, Cyprus and Luxembourg, with the latter notably doubling its road expenditure share over GDP since 2021. Conversely, several countries – including Hungary, Estonia, Latvia and the Netherlands – show a decline in relative road investment. Hungary experienced the sharpest reduction, of nearly one percentage point since 2019, possibly signalling a shift in fiscal priorities or the attainment of a more mature infrastructure base. Meanwhile, countries such as France, Austria, and Ireland consistently record the lowest expenditure-to-GDP ratios, which may suggest a reduced need for large-scale new investments, given the already high standard of their networks and ongoing maintenance efficiency. Overall, these patterns reveal how European countries calibrate road expenditure within broader fiscal and development strategies, reflecting different stages of network maturity and investment ambition.
Comparing road expenditure on a per-capita basis sheds new light on how countries allocate resources between building new infrastructure and maintaining existing assets (Figure 3). In nearly all examined countries, spending on new construction consistently exceeds that on maintenance, with the notable exceptions of Ireland and Luxembourg, where a significant proportion of resources is dedicated to infrastructure maintenance. This population-normalised analysis offers a clearer view of national expenditure priorities, effectively accounting for differences in traffic demand and human activity, both of which correlate closely with population size.
Luxembourg stands out as a particularly interesting case: despite relatively modest total expenditure in absolute terms, it consistently ranks among the top four countries in per-capita expenditure throughout the analysed period. Alongside Luxembourg, Iceland, Finland and the Netherlands also record high per-capita investment levels, though for different reasons. In Luxembourg and Iceland, small populations likely inflate per-capita figures, whereas in Finland, the high ratio may reflect the need to maintain an extensive road network across a vast and sparsely populated territory. In contrast, the Netherlands’ high spending is more likely linked to its dense population, heavy traffic volumes, and the need to sustain a high-quality and heavily used road system. Collectively, these countries have maintained annual allocations exceeding USD 40 million per 100,000 inhabitants, reflecting strong and sustained commitments to their road infrastructure (Figure 4).
Towards balanced and sustainable investments for roads
Taken together, the data suggests that Europe’s road investment has been responsive to shocks yet uneven across regions and spending categories. Sustained, well-targeted funding that balances new construction with timely maintenance remains essential to keep networks reliable and resilient. At the same time, balanced transport portfolios matter: aligning road investments with complementary spending on public transport, active mobility, and essential services (operations, asset management, and digital tools) can improve overall system performance and value for money. Road infrastructure investment is most effective when it is evidence-based, maintenance-conscious and coordinated with broader sustainability and mobility strategies.
The new IRF World Road Statistics (WRS) 2025 edition features updated data for over 200 countries and more than 200 indicators covering key topics such as road networks, traffic volumes, multimodal transport comparisons, vehicles in use, road accidents, expenditures and revenues and many others.
The IRF Data Warehouse offers free, intuitive, interactive tools that allow users to perform in-depth analyses, compare multiple metrics and generate customised time-series charts.
For more detailed information on key statistical indicators in the road and transport sector – whether for a specific country or a global overview, please visit the IRF World Road Statistics website or email us at stats@irfofficial.org.
This article is part of the WRS Road Data Snapshot Series developed by IRF, with support of TotalEnergies Foundation and Michelin Corporate Foundation.
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