Change in agricultural diesel subsidies becomes a condition for growth package

Michael Kretschmer, Minister-President of Saxony, has made the agreement of the CDU/CSU-led federal states to a planned growth package of the traffic light coalition conditional on changes to the agreed reduction in agricultural diesel subsidies. "As the CDU/CSU-led federal states, we are making changes to agricultural diesel a condition for approval of the Growth Opportunities Act. The mediation committee will meet on February 21," the CDU politician told the newspapers of the Mediengruppe Bayern (Monday). He also announced talks with the SPD-led states.

The SPD, Greens and FDP wanted to relieve the economy by seven billion euros per year, specifically for investments and research. The Bundesrat had blocked the Growth Opportunities Act because it would also lead to a loss of revenue for the federal states. The chamber of the federal states had called on the mediation committee of the Bundestag and Bundesrat.

Kretschmer also criticized the content of the law, saying that it in no way lived up to its name. "This law will not generate growth," said the Minister President.

On Friday, the Bundestag approved the gradual abolition of tax relief on agricultural diesel with the passing of the Budget Financing Act. Farmers have been protesting against this for weeks. The chamber of the federal states had rejected a shortening of the deadline for this law and thus put the brakes on it. The next regular session of the Bundesrat is on March 22.