Negotiations Between Coalition Government and German Trade Union Regarding Farmers' Subsidies

Parliamentary and state representatives in Germany are set to meet on Wednesday, February 21, in a committee called the "Mediation Committee" following weeks of strikes by workers and farmers over "tax exemptions". The coalition government led by Chancellor Olaf Scholz has proposed a support package worth 3 billion euros, a move that has not even pleased Christian Lindner, Germany's finance minister. Meanwhile, the German trade union is demanding that the federal government retract the gradual removal of fuel subsidies for farmers and approve tax exemptions in their favor. In recent months, disputes between the federal government and the trade union over tax exemptions for diesel used in agriculture have led to widespread protests by farmers in the country and several days of strikes. The federal government's policy regarding the removal of certain agricultural subsidies, including fuel tax exemptions, has become a challenge between Olaf Scholz's government and the farmers. According to Reuters, following the farmers' protests, the German government has promised that it will not impose "tax increases" on farmers and will cancel part of the planned reduction in aid for farmers. Nevertheless, the farmers' association is calling for a complete cancellation of the tax increase, stating that the removal of the fuel tax exemption would cost them an annual loss equivalent to one billion euros. Hundreds of farmers from the Czech Republic gathered in central Prague, and protesting farmers gathered in front of the European Parliament. The protests by French farmers continue; the cancellation of the reduction in state diesel subsidies had no effect.