The German and Czech railroads ran the long-distance trains from Munich, Nuremberg and Dresden to Prague. The DB runs long-distance trains on its own account, and the individual states and regions finance shorter-distance trains, using federal and state funds. The Dresden trains run as always, but a few years ago the through Dortmund-Nuremberg-Prague train was dropped because, I hear, the DB couldn't make enough money running it. Then the Zurich-Munich-Prague train (with Swiss cars and diner) was cut to Zurich-Munich, I read on the blogs, because the Czechs didn't want to pay the high fees for using Swiss cars on their routes. So the Bavarian state, which finances local and regional trains in Bavaria, decided to run regional trains (as far as the border - the Czechs then take over the trains to Prague, even using diners on some consists) on the two Bavaria-Prague routes - without any financial participation by DB. Bavaria granted the Munich-Prague franchise to a private rail operator and the Nuremberg-Prague franchise to the DB, in both cases, again, using regional financing. When Bavaria recently renewed the two franchises it granted Nuremberg-Prague to the same private operator that runs the Munich trains, and the DB decided to compete with buses on the Nuremberg route at fares slightly below the train fares and on faster schedules than the trains'. That's where it stands now. The Czechs are upgrading their route from the border to Prague, and the Germans have been talking about electrifying their route to the border. If this all happens the DB may well decide to run long-distance trains on its own account from Bavaria to Prague, but don't hold your breath.