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General debate in the Bundestag
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Ann-Marie Utz/dpa
The Bundestag has approved the controversial reduction in tax relief for agricultural diesel. Parliament passed the Budget Financing Act, which includes the phase-out. The Bundestag then confirmed the budget for 2024 - with a two-month delay.
In a roll-call vote on Friday, 388 MPs voted yes and 279 no for the budget law. The budget supported by the SPD, Greens and FDP provides for spending of around 477 billion euros. Up to 39 billion euros in additional debt is planned. As things currently stand, this means that the debt brake in the Basic Law will be complied with again for the first time since 2019. The budget is also due to pass the Federal Council on Friday. However, the approval of the regional chamber is not required.
The budget was originally supposed to be approved in December 2023. However, a ruling by the Federal Constitutional Court thwarted the traffic light coalition's plans.
Before the Budget Financing Act can come into force, the law must pass the Federal Council. However, the regional chamber did not agree to a shortening of the deadline and did not deal with it. The law will now initially be discussed in specialist committees in the Federal Council. The next regular meeting of the Federal Council is scheduled for March 22nd.
The planned cuts triggered a wave of protests from farmers, some of whom marched with their tractors as far as Berlin in front of the Brandenburg Gate.
The Federal Council does not have to agree to the law, but could object and appeal to the mediation committee. In many countries there are coalition governments with traffic light parties. If a state government disagrees, the state must abstain from the Bundesrat or cannot agree.
The President of the German Farmers' Association, Joachim Rukwied, said on Thursday: "It is a clear signal that the states are slowing down the federal government's budget law. Now the time gained must be used sensibly and solutions must be found in the interests of agriculture. The tax increase on agricultural diesel must be taken off the table.
With the Budget Financing Act, the coalition is implementing austerity measures. According to a budget ruling by the Federal Constitutional Court, billions in holes had to be filled. The government had decided not to abolish the vehicle tax exemption for agriculture as originally planned. At the same time, the coalition of SPD, Greens and FDP agreed that the abolition of the tax relief for agricultural diesel would take place gradually and not suddenly.
So far, companies have been able to get a partial refund of the energy tax for diesel - with a reimbursement of 21.48 cents per liter. This should be reduced gradually. There will no longer be any subsidies for quantities consumed in 2026.
The budget financing law also includes a higher ticket tax on passenger flights. In addition, any tightening of sanctions for citizens' money is limited to two years. Job centers are allowed to cut off citizen's benefit for unemployed people for a maximum of two months if those affected repeatedly refuse to accept reasonable jobs. In addition, the citizen's allowance bonus of 75 euros per month will be abolished - it was introduced for further training that is not aimed at obtaining a professional qualification.
col/aeh/mfh/dpa