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German farmers protest against proposed subsidy cutbacks

Farmers park tractors at the Brandenburg Gate to protest planned cuts to state subsidies in Berlin, Germany on Jan. 8. Photographer: Sean Gallup/Getty Images

  • Thousands of German farmers block cities and roads to protest against government farm subsidy cuts.
  • The main issue is the government’s plans to phase out tax incentives for diesel fuel used in agriculture and a car tax exemption for agricultural vehicles.
  • The German Farmers Association, state farmers’ associations, and LsV Germany are calling for the withdrawal of the federal government’s planned tax increases for agriculture.
  • The protests have impacted Germany’s transportation network, with farmers blocking key highways and roads in cities like Berlin, Munich, and Hamburg.
  • Chancellor Olaf Scholz declined requests to accommodate farmers, stating that the administration will continue to implement the strategy agreed upon by the three coalition parties.
  • More demonstrations are scheduled in response to transportation delays, impacting manufacturing operations and commuters.
  • The farmers’ demonstrations and an impending train driver strike are causing challenges in Germany.
  • Opposition leaders express support for nonviolent demonstrations against the budget cuts, despite the opposition’s denouncement by politicians and the agricultural lobby.

Thousands of German farmers have blocked cities and roads to protest against government farm subsidy cuts. The main issue is the government’s plans to phase out tax incentives for diesel fuel used in agriculture and a car tax exemption for vehicles used in agriculture. The German Farmers Association has planned a week of protests across the country to make the farmers’ voices heard. Nationwide, over 100 protests are taking place in all federal states to warn the population and politicians against jeopardizing the competitiveness and existence of farmers and medium-sized transport companies. The German Farmers’ Association, along with state farmers’ associations and LsV Germany, has called for the federal government’s planned tax increases for agriculture to be withdrawn. This is the latest protest by farmers across Europe, including the Netherlands, Romania, Belgium, France, Poland, and Austria.

As demonstrations wreaked havoc on Germany’s transportation network, Chancellor Olaf Scholz turned down requests to further accommodate farmers.

On Monday, farmers protested the elimination of a fuel subsidy by taking to the streets with tractors, blocking key highways and roads in cities like Berlin, Munich, and Hamburg. Nonetheless, according to Scholz, the administration will continue to implement the strategy that the three coalition parties agreed on last week.

They agreed to abandon a prior proposal to eliminate a tax credit for the agricultural and forestry industries in order to pacify the farmers and comply with the agreement. Also, during the following three years, authorities have promised to gradually eliminate a fuel subsidy.

Following his meeting with his Luxembourg colleague, Scholz said at a Berlin press conference on Monday, “That is our proposal and I believe it is right and balanced.”

More demonstrations are scheduled over the next several days in response to Monday’s transportation delays, which impacted both manufacturing operations and commuters. According to a letter to carriers reviewed by Bloomberg, gasoline supplies to an oil-processing facility in southern Germany were impacted, while employees at a Volkswagen AG factory in the northern German city of Emden were unable to report for work.

Germany is now facing a number of challenges, including the farmer demonstrations and an impending train driver strike that would impact both passenger and freight operations.

Scholz and Robert Habeck, the minister of the economy, both spoke out in support of the farmers’ right to demonstrate. However, Habeck cautioned in a video that was uploaded on X (previously Twitter) that far-right organizations were trying to seize control of the protests and cause instability in the nation. An altercation broke out between demonstrators and police last week as a hundred farmers blocked his disembarkation from a north coast boat.

On Monday, opposition leaders expressed their support for nonviolent demonstrations against the budget cuts, despite the fact that the episode had been denounced by politicians from both parties and the agricultural lobby.

The farmers’ backing from four state premiers from Scholz’s Social Democrats casts doubt on the unity of the government coalition’s position to reject requests.

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