The potential to strengthen productivity growth and enhance consumer welfare through more competition is large in the energy and railway sectors. Establishing stronger vertical separation between network access provision and potentially competitive services will be the main challenge for Germany going forward. In particular, it will be a crucial point in designing the envisaged privatisation of state stakes in the railway sector market incumbent Deutsche Bahn AG. In the energy sector, concentration in the wholesale market is another crucial issue that Germany will need to tackle, including by fostering market integration with neighbouring countries as well as market entry of newcomers. A more systematic approach to tendering unprofitable transport services will be key in the railway sector. This Working Paper relates to the 2008 Economic Survey of Germany (www.oecd.org/eco/surveys/germany).