German farmers threaten renewed protests over subsidy cuts

German farmers are preparing for a renewed wave of protests next week if the government continues to implement subsidy cuts impacting the agriculture sector

German farmers are gearing up for a renewed wave of protests next week if Chancellor Olaf Scholz’s government remains steadfast in its decision to implement subsidy cuts impacting the agriculture sector.

In a week-long demonstration, thousands of farmers utilized honking tractors to block roads, protesting against Scholz’s coalition’s plans to eliminate tax breaks for agriculture.

Joachim Rukwied, the head of the German Farmers’ Federation, issued a stern warning, saying: “If nothing comes on agricultural diesel, the next protests and action will start from the coming week.”

The government, responding to the mounting pressure, partially reversed the cuts by pledging to reinstate a discount on vehicle tax and to gradually phase out a diesel subsidy over several years, rather than an immediate cessation.

However, Rukwied emphasized that the concessions were insufficient.

“Everything that has been announced until now has only caused more irritation rather than calm things down,” he remarked, urging Berlin to take decisive action to “prevent widespread farmers’ protests.”

Scholz’s three-way coalition was compelled to implement the cuts after a constitutional court ruling last year created a multi-billion-euro deficit in the state’s budget. This move comes at a challenging time for Germany, with its export-oriented economy already grappling with inflationary pressures.

Not limited to farmers, various sectors, including metallurgy, transport, and education, have witnessed protests amid rising prices and economic challenges. Despite facing criticism, Scholz defended the cuts as fair, and Finance Minister Christian Lindner addressed farmers’ concerns, saying, “everyone must contribute” to the government’s efforts to navigate budgetary constraints.

Source: AFP