German Politicians Push 'Lawnmower Method' to Slash €285B in Subsidies
Two senior politicians have proposed bold cuts to government subsidies to balance the budget and fund future tax reforms. Roland Koch of the CDU and Peer Steinbrück of the SPD agree on using a broad, fast approach—dubbed the 'lawnmower method'—to reduce spending without lengthy debates over individual cases. Their plan aims to free up billions within two years, rather than as a one-time measure. Koch and Steinbrück first collaborated on subsidy cuts in 2003, producing the 'Koch-Steinbrück List'. Now, they argue that similar decisive action is needed again. Steinbrück pointed out that total government subsidies reached roughly €285 billion in 2024, a figure he believes could be trimmed by 10 to 15 percent. Such savings, he claims, would cover the full cost of planned tax reforms.
Koch proposed a structured mechanism to reduce subsidies automatically, avoiding the need to justify each cut separately. He compared the task to corporate budgeting, noting that every CEO can typically find ten percent to cut. Both politicians insist that a systematic approach would prevent delays and political wrangling. The federal government is currently in talks to reduce subsidies, hoping to close budget gaps and prepare for tax changes expected in 2027. While Koch and Steinbrück have outlined broad areas of agreement, many details still need to be worked out.
The proposed cuts could save around €10 billion over two years, according to Koch. Steinbrück’s estimate suggests even higher savings, potentially covering all tax reform costs. The government must now decide whether to adopt the 'lawnmower method' or pursue a more detailed review of subsidies.
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