Leading economists call for complete phase-out of EU farm subsidies

Prominent scholars in economics and law, convened as the Kronberger Kreis, have called for the total removal of agricultural subsidies across the EU. Citing a study prepared ahead of the 2028-2034 EU multi-annual financial framework negotiations, they argue that subsidies amount to over ten billion euros annually in Germany, yet the sector contributes less than one percent to overall economic value. The experts contend that market-based tools, not universal payments, should address environmental and market failures.

Their four-point reform plan includes terminating national aid schemes, applying standard competition rules to farming, streamlining sector-specific regulations, and shifting to precise, impact-oriented instruments. The proposal also references successful liberalisation in Australia and New Zealand as models, while acknowledging the political difficulty of such a shift.