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The President of the Federation of German Industries (BDI), Siegfried Russwurm, has sharply criticized the possible failure of the Growth Opportunities Act.

"The signal effect is catastrophic," he said on Deutschlandfunk.

The evening before, no agreement had been reached between the traffic light politicians and the Union.

This is “a catastrophic sign for corporate investments,” said Russwurm.

The mediation committee of the Bundestag and Bundesrat accepted a compromise with the votes of the traffic light parties.

Since the Union did not agree, an agreement depends on a vote in the Federal Council.

There the law would fail without the consent of the Union.

The BDI President criticized the Union's strategy, which had sided with the farmers in recent weeks: They only want to agree to the law if the federal government reverses the gradual elimination of agricultural diesel subsidies for farmers.

"I think it's really difficult to make such connections, to link individual topics with one another," said Russwurm.

Laws instead of laws

The Union's actions mean that the law desired and needed by the economy will now be "uncertain until the end of March," criticized Russwurm.

The plenary session of the Federal Council is actually supposed to vote on the law on March 22nd - there the law would fail without the consent of the Union.

Numerous business associations had already written a letter to the Prime Minister urgently demanding that the Growth Opportunities Act be passed as quickly as possible.

The Federal Council initially officially blocked the law because it would lead to a loss of income for the states.

He therefore called the mediation committee.

The growth package provides tax relief for companies until 2028 and an acceleration of approval processes.

However, the volume of relief is expected to fall from the planned seven billion euros annually to three billion euros.

“The law has become a little law,” complained Russwurm.

The chairwoman of the mediation committee, Mecklenburg-Western Pomerania's head of government Manuela Schwesig, also denounced the Union's stance.

The CDU and CSU would link their approval to a withdrawal of the planned abolition of agricultural diesel subsidies for farmers, said the SPD politician in the ZDF “Morgenmagazin”.

Agricultural diesel has “nothing at all to do” with the Growth Opportunities Act.

Söder announces no in the Federal Council

Schwesig spoke of “tactical games.”

The Union itself has so far prevented the law on agricultural diesel from even reaching the Federal Council.

There is actually “an agreement” on the Growth Opportunities Act.

It is a “good law”.

Schwesig, who is currently President of the Federal Council, also shared the criticism of the government's planned gradual cuts in agricultural diesel.

The subsidy cuts for farmers are “not right”.

CDU politician Daniel Günther blamed the traffic light coalition for the outcome.

Schleswig-Holstein's Prime Minister said he regrets that the Mediation Committee was unable to "send a strong signal to ease the burden on our economy."

A broad majority for the Growth Opportunities Act would have been possible "if the federal government had followed up on its announcements to relieve the burden on agriculture," he said.

“Then I would have agreed too.”

Bavaria's Prime Minister Markus Söder has already announced that Bavaria will "under no circumstances" agree to the package in its current form in the Federal Council.

The CSU politician said he would have liked a comprehensive package - with an abolition of the solidarity, with a corporate tax reform, with lower energy taxes - and the pacification of the dispute over agricultural diesel.

The traffic light coalition wants to get the amended draft of the Growth Opportunities Act through the Bundestag at least this Friday.

April/AFP/dpa