Monika Schnitzer calls for repeal of Germany's restaurant VAT cut

Monika Schnitzer, chair of the Advisory Council for Economic Development, says the 2026 reduction of value‑added tax on meals from 19 % to 7 % costs about €3.4 billion a year and has not helped the small, often rural, gastropubs it was meant to protect. She argues the measure mainly benefits large chains such as McDonald’s and Burger King and labels it “one of the most unnecessary subsidies”.

Schnitzer also urges the removal of other misdirected aids, including diesel‑tax relief, and calls for a broader “list‑clearing” of subsidies while stressing the need for strong investment in infrastructure and artificial‑intelligence capabilities to keep Germany competitive. Industry groups and some politicians defend the cut, but rising insolvencies in the hospitality sector and a consumer survey showing 52 % of respondents cutting back on restaurant visits fuel the debate.