Speaking before the Coalition Committee, former state premiers Roland Koch (CDU) and Peer Steinbrück (SPD) are urging their respective parties to adopt a steady and comprehensive reduction of state subsidies, a process they refer to as the “lawnmower method”. Steinbrück noted that chipping away at subsidies one by one is merely a disorganized process, suggesting the more systematic approach. Koch echoed this view, stating that a mechanism must be found to curb funding without having to justify cuts to every single contribution.
This approach recalls a 2003 concept developed by the two politicians, known as the “Koch-Steinbrück-List”. Currently, the federal government is once again debating subsidy reductions, attempting to close budget gaps and finance the planned tax reform for 2027.
Steinbrück cited the Kiel Institute’s economic report, which estimated total state subsidies at around 285 billion euros in 2024. He expressed strong confidence that it would be possible to save between ten and fifteen percent of this amount, which would be sufficient to pre-finance the tax reform.
Koch added his own perspective, reminding observers that corporate leaders are acutely aware that “ten percent always go”. He recalled that when they first developed the plan, they successfully gathered numerous ideas and found consensus, making the process highly effective-a method he urged the federal government to adopt now. The CDU politician remains convinced that accumulating savings of ten billion euros should be achievable within a foreseeable timeframe, perhaps two years, and crucially, that these savings would be permanent rather than just a one-off financial effect.