Berlin – The government has made unexpected changes to its tax plans, in response to widespread protests by German farmers, easing concerns within the agricultural sector. The protests were triggered by the coalition government’s initial decision to phase out agricultural subsidies as part of its efforts to address financial challenges.

The week-long protests kicked off with farmers blocking roads across the country, utilizing tractors and trucks adorned with banners reading “No farmers, no food, no future.” In Berlin, convoys of tractors obstructed the main avenue leading to the Brandenburg Gate, causing traffic disruptions and prompting concerns about potential fringe groups exploiting the situation.

Vice-Chancellor Robert Habeck, in a video message, warned of extremist elements infiltrating the protests. “Calls are circulating with coup fantasies, extremist groups are forming, and ethnic-nationalist symbols are being openly displayed,” said Habeck.

Police reports confirmed multiple road and highway blockades, leading to traffic jams during the morning rush hour. Farmers expressed their commitment to blockading major traffic and logistics routes for a week, arguing that the proposed end to tax breaks would cripple their businesses.

The protests coincided with a strike called by the train drivers union GDL, adding to the potential disruption of the country’s roads and railways.

Joachim Rukwied, head of the German farmers’ association DBV, appealed for public sympathy in an interview on Monday. “We do not want to lose the support and solidarity we have received from large parts of the population,” he said, emphasizing that farmers cannot accept the planned tax hikes for the agricultural sector.

Rukwied also cautioned against far-right activists exploiting the protests, a concern shared by Interior Minister Nancy Faeser, who assured that authorities were closely monitoring the situation.

The initial backlash from farmers prompted Chancellor Olaf Scholz’s coalition to make unexpected changes to its 2024 budget draft. The revised plans include a gradual reduction of the farmers’ tax break on agricultural diesel, with a 40% reduction this year, followed by a 30% reduction in 2025, and complete cessation from 2026. Additionally, the government abandoned plans to abolish preferential treatment in vehicle tax for forestry and agriculture.

Despite these adjustments, the DBV insisted that the changes were insufficient, maintaining their plans for protests throughout the week. Clemens Fuest, the head of the Ifo economic institute, echoed concerns about the tax overhaul disproportionately affecting farmers, stating that burdening this sector excessively is unwarranted, even if it is currently in a positive phase after challenging years.