2023-06-26 15:43:00
100 million euros will be allocated to five Eastern European countries. The measure was announced by the European Commission on Monday 26 June. Its objective is to help farmers in these five countries, destabilized by the massive import of cereals from Ukraine. Indeed, these imports saturate the silos and drive down prices on domestic markets. This problem is not new. In March 2023, Brussels had already offered aid of 56.3 million euros to Poland, Romania and Bulgaria.
Cereals: EU extends restrictions on Ukrainian imports
These 100 million euros will be distributed as follows: 39.33 million euros will be allocated to Poland, 29.73 million to Romania, 15.93 million to Hungary, 9.77 million to Bulgaria and 5.24 million to Slovakia, according to details provided by the European executive. However, this envelope was not immediately unanimous. A dozen countries had called for clarifications » as to the criteria for calculating and allocating the funds.
Reluctance had already been expressed in early June, when these same five Eastern countries had obtained authorization from Brussels to extend their restrictive measures until mid-September. These aim to block the marketing of Ukrainian wheat, maize, rapeseed and sunflowers on their territory, on condition that their transit to other countries is not prevented. Half of the EU Member States expressed concern, in a joint letter, regarding a ” differentiated treatment within the internal market ».
The ” agricultural crisis reserve » for the other 22 countries
To obtain the green light on the envelope of 10 million euros, Commissioner Janusz Wojciechowski had promised in mid-June to activate for the 22 other Member States all the rest of the ” agricultural crisis reserve “. The amount of the latter had been revised upwards to reach 530 million euros for the year, once morest 450 million euros previously. The 22 States will therefore be able to share 330 million euros. Regarding the distribution of this envelope, Spain will receive approximately 81.08 million euros, 60.55 million euros will go to Italy and 53.1 million euros to France. As for Germany, it will receive 35.77 million euros. Each country will be able to triple the aid granted by Europe using national funds.
This aid is intended to support European farmers who are facing the many crises of the moment, from the indirect impact of the war in Ukraine on energy and fertilizer prices to the recent floods in Italy and the drought which is hitting the whole of Europe. However, this envelope of 330 million euros has not yet been formally granted to the 22 Member States. It still needs to be approved at a future meeting of representatives of these countries.
Ukrainian cereals: Brussels finds an agreement to ease tensions
Avoiding the ban on importing Ukrainian cereals
In May 2022, the Twenty-Seven had suspended customs duties on Ukrainian foodstuffs for one year, in support of the country. But because of this emergency policy, Ukraine’s neighbors received a massive flow of grain, which caused the silos to become saturated, due to a lack of appropriate logistical means. As a domino effect, cereal prices in these supply-saturated countries have fallen, which has affected the incomes of local farmers. To the point of leading to major demonstrations by farmers in several countries.
To ease tensions, four countries (Poland, then Hungary, Slovakia and Bulgaria) issued import bans on Ukrainian products from mid-April 2023. These protectionist measures were quickly condemned by Brussels, the sole authority to determine EU trade policy, and of course by kyiv, which considers them contrary to the principles of the single market. The European institution has therefore taken on its role of mediator to maintain an aid system for Ukraine that would not destabilize neighboring EU countries.
At the end of April 2023, the European Commission announced that it had concluded an agreement with five States of the European Union to guarantee the transit of Ukrainian cereals. This agreement provides for the end of import bans, in exchange for ” exceptional safeguard measures on the four products considered the most sensitive: wheat, corn, rapeseed, and sunflower seeds. Signed by five countries (Poland, Hungary, Slovakia, Bulgaria, Romania), the text was approved by kyiv and aims to ” address both Ukraine’s concerns and those of neighboring countries explained Trade Commissioner Valdis Dombrovskis.
(With AFP)
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