The existing diesel price discount for tractors and agricultural vehicles is also being abolished, although Agriculture Minister Cem Özdemir (Greens) promised until last week to maintain the EU discount popular with farmers. Özdemir blames Finance Minister Christian Lindner (FDP). Responsibility for agricultural diesel subsidies and exemptions for land and forestry vehicles lies with the federal Ministry of Finance.
The abolition of the diesel subsidy for the agricultural sector has led to remarkable political outrage. Özdemir is now being accused of breaking his word both in parliament and by the agricultural sector.
Agricultural organizations, including the Landwirtschaftliche Sozialversicherung (LSV), warned last week of serious consequences of these cuts for farmers and agricultural businesses. They doubt the viability of their operations with rising fuel costs.
In early December, the High Court in Karlsruhe ruled that a proposed allocation from corona recovery funds in the German multi-year budget was not permitted. The 'traffic light coalition' had wanted to reserve tens of billions for the transition to greater use of sustainable energy and home insulation.
As a result, Chancellor Olaf Scholz (SPD), Economy Minister Robert Habeck (Greens), and Finance Minister Christian Lindner (FDP) had to look for cuts in proposed investments and increases in taxes and levies. In recent weeks, the three-party coalition of Social Democrats, Liberals, and Greens has been under high tension. The new German austerity measures will be discussed next week in the Bundestag in Berlin.