Federal Budget Debate: Stengele and CDU Slam Electric Car Subsidy Cessation
Thuringia's Green Environment Minister, Bernhard Stengele, recently voiced his disapproval of aspects of the 2024 federal budget agreement. In particular, he criticized the abrupt discontinuation of state subsidies for electric vehicle (EV) purchases as unfair and inconsiderate.
Stengele, who had just bought an EV with the intention of benefitting from the subsidy, expressed his anger and disappointment over the premature end to this financial incentive. He argued that the manner in which such decisions were made was inconsiderate to both consumers and businesses.
Meanwhile, the CDU's chairman of the Thuringian state parliament, Mario Voigt, accused the traffic light coalition of jeopardizing Germany's critical automotive industry with their handling of EV funding. Voigt argued that the effect was particularly damaging in Eastern Germany, where people have less disposable income.
The Federal Ministry of Economics announced the termination of EV purchase premium applications beginning last Sunday. The premium, valued between 3,000 and 4,500 euros, depended on the car's purchase price.
Stengele also raised concerns about the planned abolition of tax breaks for agricultural diesel, advocating for a gradual reduction instead to prevent undue burden on agricultural companies.
Additional Insights
- Economic and Strategic Motivations: The government's decision to end EV subsidies was motivated by a combination of factors, including economic and strategic reasons. The primary objective was to prevent public funds from unnecessarily incentivizing the purchase of foreign-made EVs, especially those from China, and to support the domestic automotive industry[1][2].
- Legal Constraints: The need to cut billions of euros from climate investment plans due to a supreme court ruling further influenced the subsidy cuts[2].
- CDU's Stance: The CDU, while favoring the phase-out of fossil fuels, emphasized the importance of maintaining economic competitiveness and striking a balance between economic growth and climate change concerns[2].
