Coalition Offers Farmers Compromise, Unclear If Enough To Avoid Protest

A German gov't spox has confirmed that the leaders of the federal coalition have agreed that the abolition of tax concessions for agricultural diesel, a cost-saving measure planned for the 2024 federal budget, will not be implemented in one step. Instead, "there will be a gradual reduction in the tax relief to give the affected companies more time to adjust." The spox also confirmed that the "Waiving of preferential treatment in vehicle tax for forestry and agriculture [is] no longer planned."

• The removal of the diesel tax break and tax exemption for farming vehicles has proved some of the most controversial measures of the 2024 budget, which still needs to pass through the Bundestag before implementation. It is unclear if the concessions will be enough to placate the agricultural sector, and Food and Agriculture Minister Cem Özdemir who has voiced his concern at the plans.
• Major protests in Dec 2023 saw hundreds of farmers cause gridlock in central Berlin. The German Farmers' Association (DBV) and the grassroots Land schafft Verbindung (LsV) ("Country Creates Connection") movement have planned a 'week of action' across cities in Germany from 8-15 Jan.
• The German gov't will be wary of recent events in the neighbouring Netherlands. There, gov't plans regarding limiting nitrogen emissions spawned major protests by farmers and the rise of a new political party (the Farmer-Citizen Movement) which was seen by some observers as paving the way to the far-right winning a plurality in the Nov election.