German Chancellor Olaf Scholz rejected calls to make further concessions to farmers as protests caused widespread transport disruptions across Europe’s largest economy. 

Farmers took to the streets with tractors on Monday and blocked major roads and highways — including in Berlin, Munich and Hamburg — criticizing plans to end a subsidy on diesel used in agriculture. Still, Scholz said the government was sticking with a plan agreed on by the three coalition parties last week.

Under the accord, and in an effort to appease the farmers, they decided to drop a previous plan to end a tax break for the agriculture and forestry sectors. At the same time, officials vowed to proceed with the removal of a diesel subsidy in steps over the next three years.

“That is our proposal and I believe it is right and balanced,” Scholz said January 8 at a news conference in Berlin after talks with his Luxembourg counterpart.

January 8’s transport disruptions affected commuters and factory operations, with more protests planned in the coming days. Staff at a Volkswagen AG plant in the north German city of Emden were unable to go to work, and an oil-processing complex in southern Germany saw fuel deliveries affected, according to a notice to haulers seen by Bloomberg. 

The farmer protests are hitting Germany at a difficult time as it’s also bracing for a widespread strike of train drivers in the coming days, affecting both passenger and freight transport.

Both Scholz and Economy minister Robert Habeck defended the farmers’ right to protest, but in a video published on X, formerly Twitter, Habeck warned about efforts by far-right groups to hijack demonstrations and destabilize the country. Earlier in January, a group of about 100 farmers prevented him from disembarking from a ferry on the north coast, resulting in a police scuffle with protesters.

While that incident was condemned by officials from across the political divide — as well as by the farming lobby — opposition leaders on January 8 voiced support for peaceful protests against the cutbacks. 

Four state premiers from Scholz’s Social Democrats threw their support behind the farmers, raising questions over how united the ruling coalition will be in its stance to rebuff demands.