Government partially withdraws cutback plans for farmers
In December, the coalition government announced billions in cuts to the budget for 2024 as a result of the Federal Constitutional Court's budget ruling. Some of these cuts affected farmers, who responded with large-scale protests and announced further demonstrations.
Federal Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Federal Finance Minister Christian Lindner (FDP) have now also agreed on further changes to the original budget compromise, as Hebestreit announced. Accordingly, the planned changeover to the EU plastic levy will be postponed until January 1, 2025. It has so far been paid from the budget and should actually be paid by manufacturers and retailers - and therefore ultimately by consumers - this year.
As a contribution "to cover the additional investment requirements at Deutsche Bahn", the agreement between the top representatives of the traffic light coalition is to "strengthen Deutsche Bahn with equity increases totaling 20 billion euros by 2029", Hebestreit went on to explain. In the years 2024 and 2025, "equity increases of 5.5 billion euros each are planned". Proceeds from equity investments should also be used for this purpose.
According to the information provided, the changes announced on Thursday will reduce the previously planned relief volume by 2.5 billion euros, Hebestreit continued. In return, revenue from the offshore wind tender in 2023 will now flow into the federal budget to the tune of 780 million euros.
An additional savings contribution of 100 million euros is also planned for the Ministry of Agriculture's budget. The remainder is to be offset by leeway resulting from updated economic and budgetary data in the budget.
The Federal Government is reportedly aiming to pass the 2024 budget in the Bundestag in January. The Bundesrat could then "conclude the legislative process" at its meeting on February 2, 2024. Until then, provisional budget management applies.
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- The SPD, Greens, and FDP coalition government, led by Olaf Scholz, Robert Habeck, and Christian Lindner respectively, have partially revised their reduction plans due to public protests by farmers.
- The withdrawn plans included significant budget cuts for 2024, which impacted farmers, prompting protests and further demonstrations.
- Steffen Hebestreit, a spokesperson for the government, announced changes to the original budget compromise, including postponing the EU plastic levy implementation to January 1, 2025.
- Initially, the budget was supposed to cover the levy, which should have been paid by manufacturers and retailers, increasing consumer costs.
- The changes will reportedly reduce the relief volume by 2.5 billion euros but increase revenue for the federal budget by 780 million euros from the offshore wind tender in 2023.
- The Federal Government aims to pass the 2024 budget in the Bundestag in January, allowing the Bundesrat to conclude the legislative process at a meeting in February.
- SPD politician Robert Habeck, along with Olaf Scholz and Christian Lindner from the FDP, will oversee the reduction plans, potentially influencing future EU budget decisions involving farmers and agricultural sectors.
- The Federal Constitutional Court's ruling on budget matters has played a significant role in shaping the current reduction plans, partly due to its implications on farmers' budgetary concerns and protests.
Source: www.stern.de
