Thousands of farmers are expected in the capital on Monday at the climax of the farmers’ week of action against the abolition of tax relief for agricultural diesel. There had previously been protests by farmers in many regions for days, sometimes causing significant traffic disruptions. In view of the farmers’ protests, Chancellor Olaf Scholz (SPD) called for “moderation and centre”.
Scholz said in a video message “Kanzler Kompakt” distributed on Saturday: “If protests that are legitimate in themselves turn over – and generally in anger or disregard for democratic processes and institutions, then we all lose. Only those who support our democracy will benefit despise.” Calls for violence and personal threats have no place in democracy.
Large demonstration, hearing, discussions
The German Farmers’ Association is calling for the cuts to be reversed and warning of negative consequences for agriculture. This could lead to a “significant intensification of structural change,” according to a statement from the association at a hearing on Monday in the Bundestag’s Finance Committee. In particular, farm succession as part of generational change is increasingly at risk, as planning security continues to deteriorate significantly.
The hearing is about the Budget Financing Act, with which the federal government wants to implement planned budget cuts. Due to a ruling by the Federal Constitutional Court, billions in holes have to be filled. Among other things, the federal government wants to gradually abolish tax breaks for agricultural diesel. This means, on average, additional costs of around 3,000 euros per year per company.
The Bundestag still has to approve the 2024 federal budget and the planned cuts. On Monday, the chairmen of the traffic light factions of the SPD, Greens and FDP invited the leaders of the agricultural associations to a discussion. Farmers President Joachim Rukwied told the German Press Agency: “We assume that they are aware of the explosiveness of the issue and that we will receive serious suggestions on it.”
Chancellor defends compromise
With regard to the partial reversal of cuts, Scholz said that the government had taken the farmers’ arguments “to heart”. “It’s also about what else we can do to ensure that agriculture has a good future. We talk about that too. We’re also looking for solutions together.” It’s also about fair prices, the power of trade, land speculation and the consequences of climate change. He added: “If every subsidy stays in place forever, if we all insist on our position 100 percent, if we do everything as usual – then we won’t make any progress.”
The Chancellor continued: “Are all the current protests really just about agricultural diesel or the reduction of subsidies? I think crises and conflicts cause uncertainty overall. Many people are worried about: What will come next – what will happen the future for me? All of this ensures that some people express this out loud.” Dispute is part of a democracy, says Scholz – but so is compromise. He is grateful to Rukwied for clearly distancing himself “from extremists and some free riders who call for an “uprising” and talk about “overthrowing the system.”
Steinmeier calls on the federal government to talk to farmers
“In the current situation, I think it is urgently necessary for personal discussions to take place,” said Federal President Frank-Walter Steinmeier to the “Süddeutsche Zeitung”. Protests are legitimate. “But speechlessness between the federal government and the farmers harms everyone involved.” Steinmeier advised politicians to go out into the country more often, as he does when he repeatedly moves his official residence to smaller cities for a few days. He wants to take away the feeling from people there that no one is interested in them. “Sometimes it helps to go and say, we want to hear you. In this respect, I actually think more presence in rural areas is urgently needed.”
Lindner points to high subsidies for agriculture
Federal Finance Minister Christian Lindner (FDP) told the “Neue Osnabrücker Zeitung” that the agricultural sector receives subsidies of a good nine billion euros annually from Brussels and Berlin. “Less than three hundred million will now be lost in 2025. So we’re talking about around three percent.” Everyone would have to make their contribution to the normalization of public finances. Reducing subsidies would not close budget holes, but would finance new relief – namely the reduction in electricity tax for the manufacturing sector.
However, Lindner promised farmers an increased reduction in bureaucratic burdens. “The current discussions about agriculture are not just about public money and subsidies. There is also growing frustration among farmers about more and more regulations and other interventions in their operational processes,” he told the “Rheinische Post”. “That’s why we have to look at how economic success can be improved overall through less regulation.” Farmers President Rukwied said: “We will not accept lazy compromises when it comes to agricultural diesel.”
