Overview
- Finance Minister Lars Klingbeil said on Friday that he would not rule out using the 'Rasenmäher' method and that it could be applied at least in part to cut subsidies and tax benefits.
- The proposal originated with CDU parliamentary leader Jens Spahn, who urged a uniform five percent reduction across subsidies and tax breaks to free funds for relief measures.
- Chancellor Friedrich Merz has voiced skepticism and some CDU figures, including Michael Kretschmer, prefer targeted measures or higher taxes on the wealthy, while the Left called Klingbeil's openness a political failure.
- Analysts and reports say a broad pauschal cut would hit areas such as energy‑efficient home renovation grants, BAföG student aid and public transport support and would require legal and administrative work to implement.
- Klingbeil warned that initial one‑percent savings were only a 'warm‑up,' ministers have been asked for deeper savings, and the government says final decisions will follow inter‑ministerial negotiations that will shape who pays and how the 2027 tax reform is funded.