Health check on European agriculture to ensure the sector can keep up with growing demand in a sustainable way. The EU commission is proposing new rules (20 May) aimed at enabling European agriculture to respond to growing demand for food and rising prices without compromising on environmental standards. The commission wants to clear obstacles that hinder farmers from responding to market signals by :
To ensure that these measures do not harm the environment, aid will come with various environmental conditions attached ("cross compliance"). To coincide with this agricultural policy "health check", the commission has produced an analysis of the reasons behind the surge in food prices and its impact – especially on the poorest. It proposes a three-fold policy response. The price increase is the result of structural factors including a rise in global demand and the increased cost of energy, but also temporary factors such as the falling US dollar and export restrictions in some countries. While the "health check" will counter rising food prices in the short-term by stimulating European production, long-term measures including more coordinated international cooperation and investment in agricultural research are also required. Summing up the situation, president Barroso said, "The European Union has reacted rapidly to the sudden surge in food prices. We are dealing with a problem that has many root causes and many consequences. So we need to act on several fronts at the same time to address them." To make sure its biofuels policy does not drive food prices higher, the EU will impose strict sustainability criteria and require new generations of biofuels to be commercially viable.
Syed Siful Alam Shovan
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