German government spokesman Steffen Hebestreit said last week that instead of canceling diesel subsidies all at once, their amounts would be cut gradually and vehicle tax breaks for forestry and agriculture would remain in place. However, farmers still continued their protests and strikes across the country.
"We took the farmers' arguments to heart and revised our original plan again. It's a good compromise. It is also about what else we can do to ensure that agriculture has a good future. And that is what we are discussing together and looking for a joint solution," Scholz said in a video address published by the German government.
A compromise on the issue could not be reached if each side keeps insisting on the full implementation of its demands, Scholz added.
The chancellor also thanked the president of the German Farmer's Association, Joachim Rukwied, for drawing a line between farmers and "extremists," as well as people who want to "overthrow the system."
In December 2023, the German government announced plans to abolish diesel subsidies for farmers amid the budget crisis, which would bring 440 million euros ($481 million) to the federal budget. The government also planned to end tax breaks on vehicles for forestry and agriculture, gaining an additional 480 million euros. The announcement triggered multiple farmer protests throughout the entire country.