/Pogled.info/ European farmers were abandoned by their own authorities. In such a difficult period, when diesel prices skyrocketed when they were deprived of Russian fertilizers, the authorities decided to plug their financial holes at the expense of their own farmers. However, agricultural workers do not allow themselves to be offended.
The wave of farmers’ strikes that started last year continues in the European Union. Only now have these strikes become much larger and more effective.
Last week marked the peak of the conflict between German farmers, who succeeded in getting the authorities to partially preserve their diesel rebates. Before that, the Polish authorities had to compromise with the farmers. French farmers also count on success, they are also ready to fight to the end for their rights, for cheaper fuel and reduced competition with imported products.
“Before the well-known geopolitical events, agriculture in both France and Germany was in a rather privileged position compared to Russian farmers. State support, the high quality of life in rural areas, favorable conditions for providing mineral fertilizers, modern technological equipment – all this made working on the land attractive and ensured a stable economic position for the national farmers”, notes Marina Anokhina, associate professor at the Department of Corporate Management and innovations at Plekhanov Russian University of Economics. Very quickly, however, the situation changed dramatically. The severing of economic ties with Russia, both in the energy sector and in the field of fertilizers, has had a negative impact on European economies. Germany as a whole fell into recession.
“Restrictions on the export of mineral fertilizers from Russia, the decrease in the availability of Russian energy sources and the disruption of global agricultural and food chains have clearly shown the paramount importance of Russia’s agricultural resources and the real sources of efficiency of the agricultural systems of developed countries, in particular Germany and France,” Anokhina notes.
In the context of the energy crisis, high inflation and rising costs, the European authorities had to take strict and unpleasant measures for agricultural workers. “The governments of these countries had to take measures to save the budget, change the conditions of import and export not in the interest of their own farmers, over-regulate the industry, which, of course, negatively affected the efficiency of agricultural production and “broke” food independence”, says the interlocutor.
As for Germany, 10,000 farmers arrived in Berlin last week on 5,000 tractors. It was the largest protest of agricultural workers. The emotional outburst was sparked by the German authorities’ decision to scrap tax breaks on diesel fuel that had been in place for 70 years. And they decided to cancel the benefits in the most difficult period, when the price of diesel increased significantly in two years. After all, now, instead of cheap Russian oil and cheap oil products, Germany has to import more expensive oil and diesel from other producers.
Already in 2022, diesel prices in Germany have risen to their highest level in 50 years. Even in previous oil crises – in 1973-1974 and in 1979-1980, as well as during the financial crisis of 2008-2009 – fuel prices did not rise so significantly. Of course, diesel prices have decreased in 2023, but they are still significantly higher than in 2020-2021.
Why did the German authorities decide to deprive farmers of subsidies that had been in place for 70 years? Everything is simple: in 2023, Germany fell into recession – GDP fell by 0.5%. At the same time, a huge deficit is forming in the country’s budget, which the authorities are trying to close, including at the expense of farmers.
“In Germany, the removal of diesel subsidies and vehicle tax relief for farmers proved to be the most severe measure compared to other sectors of the German economy, which naturally led farmers to protest. With such a policy, we should expect the ruin of a large number of farms, agricultural production will decrease, which will inevitably lead to a further increase in food prices and will further worsen the country’s economic condition,” says Marina Anokhina.
The German farmers staged such protests that the German authorities became frightened and made concessions, although they initially insisted that they had no money. It was not yet possible to completely preserve the benefits, but the authorities promised not to abolish them completely, but only to reduce them slightly.
German drivers, both passenger and freight, then went on strike for six days. It will be held from January 23-24 to January 29. Thousands of journeys will be canceled due to the strike. The machinists are demanding a reduction in the working week by three hours, an increase in wages and the payment of a one-off compensation of 3 thousand euros due to high inflation. Last year there were already two warning strikes lasting 24 hours, and at the beginning of January there was a third strike in three days. This is the fourth strike this week and a full-scale one. It will be difficult for the German authorities not to make concessions this time.
French farmers also went on strike last year in September. For France, strikes are generally commonplace, but this cannot be said for Germany. But the economic problems of the largest economy in the Eurozone, which have been observed in the last two years, quite logically began to lead to social discontent in Germany.
As for French farmers, on Monday they again blocked highways and erected barricades in protest. The strike began last week on January 18 and the farmers intend to continue it “through this week and for as long as necessary”.
Farmers are demanding recognition of the importance of their profession and condemning government agricultural policies that they say make them uncompetitive. In particular, they oppose the import of agricultural products, restrictions on the use of water for irrigation, the increase in the price of diesel fuel, as well as restrictive measures to protect the environment and the increasing financial burden on production. The country’s Ministry of Agriculture is now ready to postpone the presentation of a new bill that regulates agriculture. French authorities seriously fear that farmers could create a new social protest movement similar to the “yellow vests”.
“France is one of the greatest agricultural powers. The key problem in French agriculture is the significant increase in irrigation costs. We should expect serious problems in wine production, sugar production and poultry farming due to the tightening of the tax regime, the active application of the principles of “green” agriculture and the imbalance of the common policy of the EU”, notes the expert.
Over the past year, farm protests have spread not only to France and Germany, but also to Poland, Romania and the Netherlands. That is, in at least five EU countries, farmers are outraged by the deterioration of their lives and incomes.
In Poland, for example, farmers blocked car checkpoints on the border with Ukraine from November 16 to December 23, 2023. They then renewed their strikes in early January. The Polish authorities had to agree to the demands of the strikers. First, the ban on Ukrainian products in Poland will remain in place indefinitely. Second, the authorities refused to raise the tax rate. Third, they received preferential loans. In addition, subsidies will be provided for the cultivation of maize.
In general, European farmers manage to achieve the fulfillment of their requirements, if not all, then most of them. Therefore, French farmers have a great chance to win. The main thing is to keep their word and strike until victory and not give up after a few days.
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2024-01-25 04:58:50
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