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German Farmers Launch Nationwide Protests Over Diesel Tax Break Cuts

Despite government's partial reversal, farmers insist on full reversal of plans, amidst concerns of far-right groups capitalizing on unrest.

Image
Tractors line up outside Berlin's Brandenburg Gate
08 January 2024, Berlin: An AfD banner can be seen on a truck on the sidelines of a farmers' protest on the Straße des 17. In response to the federal government's austerity plans, the farmers' association has called for a week of action with rallies and rallies starting on January 8. It is to culminate in a major demonstration in the capital on January 15. Photo: Jörg Carstensen/dpa (Photo by Jörg Carstensen/picture alliance via Getty Images)

Overview

  • Farmers across Germany have launched a week of protests, blocking highways and staging demonstrations against the government's plan to scrap tax breaks on diesel used in agriculture.
  • The government's proposal to abolish a car tax exemption for farming vehicles and the diesel tax breaks were part of a package to fill a 17-billion-euro hole in the 2024 budget.
  • Despite the government partially backing down and announcing that the car tax exemption would be retained and the cuts in the diesel tax breaks would be staggered over three years, the German Farmers’ Association is insisting on the plans being reversed fully.
  • The protests have drawn attention from far-right groups, with the Alternative für Deutschland (AfD) party urging citizens to join what it has called a 'general strike'.
  • Travelers in Germany also face a nearly three-day strike later this week by a union representing many of the country’s train drivers, which is stepping up its action against state-owned railway operator Deutsche Bahn in an unrelated dispute over working hours and pay.