“Very surprising”
IFO President calls cuts for farmers “disproportionate”
January 7, 2024, 5:25 p.m
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Farmers have achieved good economic results for years. For IFO President Fuest, this profit is no understandable reason to burden them with major cuts in subsidies. He says he was surprised about the traffic light coalition’s plans.
Clemens Fuest, President of the IFO Institute, sees farmers being burdened “far disproportionately” by the cuts in subsidies planned by the traffic light coalition. “I was a bit surprised that such a large share of the overall savings package was initially expected from such a small group. That’s very surprising,” said the economic researcher at the closed meeting of the CSU members of the Bundestag in Seeon Monastery in Upper Bavaria.
One must ask how this can be justified, said Fuest. “And you certainly have to ask: Can you and should you do something like that from one day to the next? Or don’t you at least have to give such an industry time to develop fuels other than diesel, for example. That’s a task for one person decade and not a thing that can be done overnight.”
Farmers are protesting vehemently against the traffic light coalition’s austerity plans. They initially envisaged abolishing the tax relief for agricultural diesel and the exemption from motor vehicle tax. After protests, the vehicle tax exemption should be retained and the tax relief for agricultural diesel should only be gradually reduced. That’s not enough for the farmers’ association. Further protests have been announced for the new week.
Dobrindt sees danger for farmers
When asked about analyzes that farmers have achieved very good economic results in recent years, for example due to increased food prices, Fuest said: “Just because an industry is now in a good phase after difficult years does not mean that it is justified to shift such a large share of the burden to such a group.”
CSU regional group leader Alexander Dobrindt emphasized that farmers’ competitiveness would be severely restricted by the planned cuts. “Agricultural production is massively endangered by these financial cuts.” This will have an impact on the food supply situation.