Olaf Scholz’s government has been forced to soften cost-cutting measures which have enraged German farmers.
The German government has announced the withdrawal of a proposal to eliminate a car tax exemption for agricultural vehicles.
These changes were part of a comprehensive package agreed upon last month by the leaders of Chancellor Scholz’s unpopular three-party coalition to address a €17billion budget deficit in 2024.
Meanwhile, thousands of farmers staged a tractor-powered protest in Berlin in response to the proposed cuts, and have called for more demonstrations later this month.
Nonetheless, the German Farmers’ Association expressed disappointment with the government’s decision, claiming that it falls short of their expectations.
Chairman Joachim Rukwied said: “This can only be a first step. Our position is unchanged: Both proposed cuts must be taken off the table.”
The latest budget agreement also included the dropping of subsidies for the purchase of new electric vehicles, which were originally scheduled to last until the end of this year.
Scholz’s government also raised Germany’s carbon dioxide emissions levy from fuel earlier than expected at the start of the year.
The farmer’s protests have featured processions of slow-moving tractors blocking roads.
The demonstrotions are expected to reach a climax on January 15, with a major protest event in Berlin.
Around 1,500 tractors gathered on December 18 at the Brandenburg Gate in Berlin.
