12-Jan-2024

German farmers exaggerate the protest

To the point!

Germany's farmers see their very existence threatened because the German coalition government wants to gradually cut subsidies for agricultural diesel. However, on closer inspection, the economic situation of German farmers is actually not that bad. "No other sector enjoys comparable taxpayer-financed privileges," summarizes LBBW chief economist Moritz Kraemer. At the same time, he criticizes the fact that some farmers are venting their discontent in a disproportionately radical manner, which is likely to be detrimental to their cause.

Kraemer's suggestion: make subsidies for agriculture more targeted and efficient. You can read about where Kraemer sees potential for this in the latest LBBW To the point.