Energy - Schwarz: Giving in on agricultural cuts can only be the beginning
Schleswig-Holstein's Agriculture Minister Werner Schwarz (CDU) has welcomed the planned reversal of some of the cuts in the agricultural sector by the federal government. "The German government's concession regarding the abolition of the motor vehicle tax exemption can only be a start," said Schwarz on Thursday. German agriculture was missing out on around 200 million euros as a result of the gradual abolition of tax relief on agricultural diesel. "This continues to put our farmers at a competitive disadvantage on the European market."
Schwarz said that the German government must come up with solutions as quickly as possible as to how these missing funds could be compensated for elsewhere if necessary. "We are at a point where many farms are deciding on their future and need the support of politicians, but not additional burdens."
The German government had previously stated that there would be no abolition of the motor vehicle tax exemption for agriculture. The abolition of tax concessions for agricultural diesel will be spread out and implemented in several stages.
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- The CDU, being a key player in the German Coalition government, has a significant role in steering the country's Economic policy, including its stance on subsidies for the agrarian sector.
- The decision to give in on agricultural cuts by the Federal Government could set a precedent for future Economic policy discussions, especially in regions like Schleswig-Holstein that rely heavily on agriculture.
- Werner Schwarz, the Agriculture Minister of Schleswig-Holstein, has emphasized the need for the Federal Government to find alternative ways to compensate for losses incurred due to agricultural cutbacks, as these decisions can impact the household budgets of farmers.
- The German agricultural sector has been struggling with competitive disadvantages on the European market due to gradual subsidy reductions, making it imperative for the Federal Government to reconsider its Energy policy to support this essential sector.
- While the German government initially resisted the idea of abolishing motor vehicle tax exemptions for agriculture, recent developments have led to a review of this position, potentially impacting Germany's overall Energy and Economic policy.
- Werner Schwarz contends that the redemption of fiscal losses for the agricultural sector must be achieved without adding further burdens to farmers, as this could adversely affect the profitability of their household businesses.
- The adaptation of Economic policies in Germany, particularly in regards to agricultural subsidies, will have broader implications on the country's Energy production and consumption, with potential consequences for the German economy and its position in the European market.
Source: www.stern.de
