Thousands of farmers in Germany began a nationwide weeklong protest on Jan. 8, expressing their discontent with government cuts to agricultural subsidies. The demonstrations escalated as farmers, opposing the elimination of diesel tax breaks, blocked highways and city roads, leading to widespread traffic disruptions throughout the country.

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Reinhard Jung, a spokesperson for the Free Farmers, criticized the government’s move, highlighting the perceived injustice of imposing a tax increase on the agriculture industry, which is predominantly climate-neutral and relies on solar energy.

“The fact that the German government is unilaterally selling a tax increase against the only industry that is largely climate-neutral, namely agriculture, which mainly uses solar energy, as a reduction in climate-damaging subsidies – that’s abysmally dishonest,” Jung said. “And, of course, it is also a very real economic blow against us, which was the straw that broke the camel’s back.”

Last month, the government proposed increasing vehicle taxes and eliminating diesel tax breaks for farmers as part of a plan to address an $18 billion budget deficit in 2024. These cuts were implemented as part of an emergency plan to address budgetary issues after the constitutional court declared Germany’s 2024 budget illegal.

Chancellor Olaf Scholz addressed the financial constraints, reaffirming the government’s commitment to driving forward the climate-neutral transformation of the country, strengthening social cohesion, and standing in solidarity with Ukraine against Russia.

“My most important message at the beginning,” Scholz said. “The government is sticking to its goals. We are vigorously driving forward the climate-neutral transformation of our country, we are strengthening social cohesion, and we are standing closely with Ukraine in its defensive fight against Russia. However, it is clear that we must manage with significantly less money in order to achieve these goals. Prioritizing therefore means clarifying together what we can and cannot afford. It is also about cuts and savings.”

In a partial reversal Thursday, Jan. 4, officials announced the preservation of the car tax exemption and a staggered reduction in diesel tax breaks over three years. However, farmers argue that these changes are insufficient, urging the government to consider further revisions.