German Meat Tax No Longer a Taboo for CDU/CSU

Before this budget cut can come into effect, the amended budget must first be passed by the federal Bundesrat. This federal chamber representing state governments postponed the decision until March 22. The German coalition does not need its approval, but the states can appeal to the mediation committee.

The German CDU/CSU faction has meanwhile presented a new agricultural strategy that not only emphasizes their farmer-friendly image but also leaves open the possibility of introducing a meat tax. The CDU itself speaks of a “reinforcement package for agriculture” indicating a ‘restructuring in agricultural policy.’ The focus is on sustainability and the future viability of agriculture.

At the same time, the CDU is keeping the door open for a new meat tax, a proposal that has been the subject of fierce political debate for more than two years. This meat tax stems from an agricultural future scenario developed by a specialist committee led by former Minister Jochen Borchert.

In the election campaign prior to the formation of the current center-left coalition, the parties could not agree on this. Green Minister Cem Özdemir now agrees with the financing sources proposed by the Borchert committee: higher VAT on all food products, a general tax increase, or an additional meat levy of about forty cents per kilo.

The SPD faction is also now leaning towards additional state support to enable the agricultural transition, but part of the liberal FDP faction still opposes higher food prices because it fuels inflation. CDU/CSU now gives the impression that they are open to discussion. The party leadership indicates that their plan and financing ‘are part of their strategy aimed at future government participation.’

Although the CDU/CSU opposition has not yet committed, their strategy paper does open the way to some form of Borchert financing. By choosing a ‘middle position’ (between SPD/Greens and FDP), the CDU/CSU could create support for this proposal.