Farmers protest against a German government plan to cut tax breaks for diesel

German farmers are gathering in Berlin to protest against planned cuts to tax breaks for diesel used in agriculture, part of a deal reached by the government to plug a hole in the country’s budget

BERLIN -- German farmers gathered in Berlin on Monday to protest against planned cuts to tax breaks for diesel used in agriculture, part of a deal reached by the government to plug a hole in the country’s budget.

Leaders of Chancellor Olaf Scholz's three-party coalition last week agreed on measures to fill a 17 billion-euro ($18.5 billion) hole in next year's budget, saying they would achieve that by reducing climate-damaging subsidies and slightly reducing some ministries' spending, among other measures.

That was necessary after Germany's highest court annulled an earlier decision to repurpose 60 billion euros originally meant to cushion the fallout from the COVID-19 pandemic for measures to help combat climate change and modernize the country. The maneuver fell foul of Germany’s strict self-imposed limits on running up debt.

As more details of the deal have emerged, so has discontent, notably over a plan to cut tax breaks for agricultural diesel and scrap an exemption from car tax for farming vehicles.

Even Agriculture Minister Minister Cem Özdemir has protested. He told ARD television that farmers have “no alternative” to diesel.