Enlarge image

Markus Söder: “Unfortunately, the law will not solve the problems that Germany has.”

Photo: Peter Kneffel / dpa

Before a meeting of the Mediation Committee on the Growth Opportunities Act, Bavaria's Prime Minister Markus Söder is urging a reversal of the planned removal of agricultural diesel subsidies. As long as the issue of agricultural diesel has been clarified, Bavaria will not fail in the mediation committee, said the CSU politician on Deutschlandfunk this morning.

Söder emphasized that the economy needed to be relieved. At the same time, he doubted whether the planned economic development law “will bring a serious, major improvement.” "Unfortunately, the law does not solve the problems that Germany has; in the end, it is just a law."

The CDU chairman Friedrich Merz has meanwhile rejected calls from the coalition that the Union should give up its resistance in the Bundesrat to the planned economic development law. “Prime ministers who are appointed by the SPD have just as reservations about this growth opportunities law as we do,” said the Union faction leader on Sunday evening in the ARD “Report from Berlin.” He referred to Lower Saxony and Mecklenburg-Western Pomerania.

The growth package provides tax relief for companies until 2028 and an acceleration of approval processes. The Federal Council is blocking the project because it leads to a loss of income for the states. That is why the package is currently in the mediation process between the Bundestag and the state chamber. The volume of relief is expected to fall from the planned seven billion euros annually to three billion euros in the mediation process. The Union is also making its approval conditional on the government reversing its planned abolition of agricultural diesel subsidies.

The Green Agriculture Minister Cem Özdemir called on the Union on Sunday to give up its resistance, as did other coalition politicians before. Furthermore, 18 business associations wrote a letter to all prime ministers on Sunday urgently calling for the law to be passed as quickly as possible.

eru/dpa/AFX