German farmers are in an uproar over the government’s proposal to slash tax breaks for diesel used in agriculture. The plan is aimed at covering a 17 billion euro gap in the country’s budget.

Chancellor Olaf Scholz’s three-party coalition recently reached a consensus on measures to address the budget shortfall, including cutting climate-damaging subsidies and trimming some ministries’ spending. This decision came after Germany’s highest court overturned an earlier plan to repurpose 60 billion euros intended for COVID-19 relief to support climate change initiatives and modernize the country. However, this move violated Germany’s strict self-imposed limits on borrowing.

With the details of the budget deal now public, discontent has arisen, particularly over the proposal to eliminate tax breaks for agricultural diesel and to remove an exemption from car tax for farming vehicles. Even Agriculture Minister Cem Özdemir has expressed his opposition, emphasising that farmers have no viable alternative to diesel.

The situation sparked a protest in the capital, as farmers rolled into Berlin on their tractors, gathering at the Brandenburg Gate to voice their anger.

Meanwhile, Vice Chancellor Robert Habeck cautioned against dismantling the recently-agreed budget deal. He stressed that any attempts to reverse planned cuts must include a viable alternative for financing the changes that is acceptable to all. Habeck also underscored the importance of politicians taking responsibility for enabling an overall solution, rather than shirking their duties.

In addition to the discontent over the diesel tax, the Economy Ministry, led by Habeck, is facing criticism from within the coalition for abruptly ending subsidies for purchasing new electric cars. The subsidies, which were originally planned to stay in place until the end of next year, are no longer accepting new applications as of Sunday night.

The news of the budget measures has sparked strong reactions, underscoring the challenges of balancing economic and environmental concerns while also considering the impact on different sectors of society. The clash between the government and the farming community highlights the complexities of policymaking and the need for careful consideration of all affected parties.