Abroad No increase
Tax on agricultural diesel – French government gives in after farmer protests
From: January 26, 2024 | Reading time: 2 minutes
French farmers burn bales of straw in Saint-Jean-De-Védas
Source: dpa/Sylvain Thomas
In fact, Paris wanted to gradually increase the tax on agricultural diesel until 2030. Following farmers' protests, the government has now decided not to do so. Prime Minister Gabriel Attal also promises less bureaucracy for farmers.
In response to farmer protests in France, Prime Minister Gabriel Attal announced that he will abandon a planned tax increase on agricultural diesel. Attal also promised “ten immediate simplification measures” to reduce bureaucracy during a visit to a farm in Montastruc-de-Salies, southwestern France, on Friday. In fact, the French government wanted to gradually increase taxes on agricultural diesel until 2030, but this is now being waived.
The largest farmers' association presented a list of 140 demands ahead of Prime Minister Attal and Agriculture Minister Marc Fesneau's visit to Montastruc-de-Salies. What was particularly important for farmers was the reduction in the price of agricultural diesel, less bureaucracy and fewer environmental regulations.
Farmers blocked toll booths with tractors
Shortly before the government's expected announcements, angry farmers intensified their protest again. On Friday afternoon, they blocked several toll booths in the Paris region with tractors. In Narbonne, in the south of France, a fire broke out in an insurance building on the sidelines of a demonstration.
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In the south of the country, several hundred tractors also blocked two highways that are between the country's main axes. In total, around 400 kilometers of motorways were closed, for example in the area around Montpellier and between Narbonne and Perpignan.
During the visit to Montastruc-de-Salies, Attal also reiterated that Paris continues to reject the Mercosur free trade agreement between South America and the EU. “I will repeat it very clearly and clearly,” said the Prime Minister. President Emmanuel Macron has always rejected the agreement and “will continue to do so”.
There are disputes mainly over environmental regulations
The EU's agreement with the South American Mercosur states of Argentina, Brazil, Paraguay and Uruguay has been fully negotiated since 2019 but has not yet been ratified. The main dispute is over environmental regulations for South American farmers. France, Austria and other countries are pushing for strict regulations to protect their own farmers. Germany is committed to rapid ratification.
Even in South America, not all countries stopped supporting the agreement with the EU. More recently, Argentine President Javier Milei criticized the Mercosur agreement in his election campaign and threatened to withdraw his country.