Politics · Germany · 8 hrs ago

Economists call for an end to broad agricultural subsidies

Economists call for an end to broad agricultural subsidies

The Kronberger Kreis has called for broad farm subsidies to end in Germany and across the EU.

The group, made up of economists and legal scholars, says general payments to farms are not justified, though targeted help may address problems such as environmental damage.

Its proposal comes as the EU prepares negotiations on its budget for 2028 to 2034, which the group says offer a chance to reshape farm policy.

Farm subsidies in Germany total more than €10 billion a year, and government payments accounted for about 42% of farm income over the past five years, the experts say.

They also want agriculture to face the same competition rules as other industries and to have less paperwork.

They argue food security depends on open markets and varied suppliers, not high levels of domestic production alone.

The experts propose phasing out subsidies through a transition period, but say cutting them will be politically difficult; the sources do not say whether governments will adopt the proposals.

2 sources

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What people are saying

Lars FeldKronberger Kreis spokesperson
There is no convincing economic justification for this extent of state intervention.
via Spiegel
Clemens FuestIfo president
Food security does not depend on the highest possible national self-sufficiency rates, but on open markets, diverse sources of supply and suitable precautions for exceptional crisis situations.
via Spiegel
Justus HaucapFormer head of the Monopolies Commission
We have moved away from discussing the principles at all, and have got used to the idea that it is God-given that agriculture is subsidised.
via Spiegel