Government partially withdraws plans to cut farmers' incomes - protest continues
After a long struggle, the coalition government announced billions in cuts to the budget for 2024 in December as a result of the Federal Constitutional Court's budget ruling. Some of these cuts affected farmers, who responded with large-scale protests.
Federal Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Federal Finance Minister Christian Lindner (FDP) have now agreed on changes to the original budget compromise, according to government spokesperson Steffen Hebestreit. Accordingly, the tax concession for agricultural diesel is only to be reduced by 40 percent this year and not completely. Further reductions of 30 percent each will then follow in 2025 and 2026, until it is completely abolished.
The solution that has now been found is "a good and fair way forward", explained Economics Minister Habeck. Agriculture Minister Cem Özdemir (also Green Party) emphasized that a disproportionate burden on agriculture and forestry was "off the table". Finance Minister Lindner told "Stuttgarter Zeitung" and "Stuttgarter Nachrichten" that the coalition was taking indications that farms were being overburdened economically seriously. This is why the reduction in subsidies will now be "stretched out over time".
The German Farmers' Association considers the partial withdrawal of the cutback plans to be "insufficient". "This can only be a first step," explained President Joachim Rukwied. "Both proposals for cuts must be taken off the table." The future viability of the sector is at stake. The farmers' association therefore intends to continue its protests against the removal of subsidies next week.
The environmental protection organization Greenpeace called this position "completely incomprehensible". "The association seems to be less concerned with the cause than with the principle," explained its agricultural expert Martin Hofstetter. "Agriculture, which is subsidized with billions of taxpayers' money every year, must also make a contribution to achieving the climate protection targets in Germany."
The agricultural policy spokesman for the CDU/CSU parliamentary group in the Bundestag, Albert Stegemann (CDU), continued to criticize the "massive burden" on farms. He told the portal t-online that it was "window-dressing if the "traffic light" now softens a radical cut".
The top representatives of the "traffic light" also agreed on further changes to the budget compromise. Accordingly, the planned changeover to the EU plastic levy will be postponed until January 1, 2025. It is currently 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 reached by the top representatives of the traffic light coalition "is to be strengthened with equity increases totaling 20 billion euros by 2029", Hebestreit went on to explain. Accordingly, "equity increases of 5.5 billion euros are planned for 2024 and 2025". Proceeds from equity investments are to be used for this purpose.
The changes announced on Thursday will reduce the previously planned savings volume in the budget by 2.5 billion euros, as Hebestreit explained. In return, revenue from the offshore wind tender in 2023 amounting to 780 million euros will now flow into the federal budget. 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 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" on February 2, 2024.
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- Farmers continue to protest against the proposed reduction plans, despite the government's partial withdrawal.
- The reduction in the tax concession for agricultural diesel will be reduced by 40% this year, according to the government's spokesperson Steffen Hebestreit.
- Robert Habeck, the Federal Chancellor, and other top representatives have agreed on changes to the original budget compromise.
- The environmental protection organization Greenpeace finds the position of the farmers' association incomprehensible and calls for agriculture to contribute to climate protection targets.
- The agricultural policy spokesman of the CDU/CSU parliamentary group in the Bundestag, Albert Stegemann, continues to criticize the burden on farms.
- The planned changeover to the EU plastic levy will be postponed until January 1, 2025, according to Hebestreit.
- The changes announced on Thursday will reduce the previously planned savings volume in the budget by 2.5 billion euros, according to Hebestreit.
- The federal government is aiming to pass the 2024 budget in the Bundestag in January, and the Bundesrat could conclude the legislative process on February 2, 2024.
- Cem Özdemir, Agriculture Minister, emphasized that a disproportionate burden on agriculture and forestry was off the table.
- Christian Lindner told "Stuttgarter Zeitung" and "Stuttgarter Nachrichten" that the coalition was taking indications seriously that farms were being overburdened economically.
- The German Farmers' Association considers the partial withdrawal of the cutback plans to be "insufficient" and intends to continue its protests next week.
- The changes announced on Thursday will also result in additional savings contributions of 100 million euros for the Ministry of Agriculture's budget, according to Hebestreit.
Source: www.stern.de
