Hongaars Voorzitterschap: EU moet optreden tegen stijgende voedselprijzen (en)

Poor people are particularly vulnerable to rising food prices, so aid needs to be provided to them, which demands further action from the EU, Foreign Minister János Martonyi pointed out on the Presidency’s behalf in the European Parliament, on 16 February 2011.

In the debate on rising global food prices, Mr Martonyi represented the Council’s position and reminded the Parliament that almost one billion people are starving worldwide, and an increasing number of people demand increasing amounts of food. Food production has been reduced by droughts and floods in several places, and production costs have also risen. In several countries, soaring food prices triggered social unrest, and political uncertainty. Moreover, certain steps of global partners and financial speculation in raw material markets, also contributed to the increase in food prices, the Minister declared.

“According to the Food and Agriculture Organisation’s forecasts, food prices are expected to go even higher”, Mr Martonyi added.

An economically viable and sustainable CAP

The Minister informed the Parliament that “the Council is conducting intensive negotiations about the future of the Common Agricultural Policy (CAP). The Council is looking for ways to make the EU’s agricultural production economically more viable and, environmentally sustainable in the future.” “The Hungarian Presidency i wants the Council to adopt conclusions on the CAP’s future, at its meeting on 17 March”, Mr Martonyi said.

Aiding farmers in developing world

Speaking about the EU’s responsibilities, Mr Martonyi mentioned the EU’s 1 billion Food Facility, aimed to help farmers in the developing world to extend their agricultural production capacities.

The EU will also consider food prices in its aiding policy. The Council could soon include in its agenda, the debate on the future of the EU’s development policy, Mr Martonyi said. According to the Commission’s relevant Green Paper i, international development cooperation has to promote developing countries, and grant a leading role primarily to agricultural and food production. The Hungarian Foreign Minister pointed out that developing countries should improve their internal food production capacities.

Subventions and restrictions amplify price fluctuation

Mr Martonyi mentioned that it is positive, that the G20 i Summit in Soul, gave a new impetus to the implementation of the World Trade Organisation i’s Doha Development Agenda. “The European Union would fully endorse an agreement which could greatly contribute to the establishment of stability, by terminating export subventions and banning export restrictions. Subventions and restrictions, only amplify price fluctuation and are hence counterproductive”, he said.

Enhanced transparency in raw material markets

Speaking about financial speculation, Mr Martonyi denied its direct link to food price fluctuation, but an enhanced transparency in raw material markets seems reasonable, an aim which was also set as a priority for the next year, by the French Presidency of the G20. “The European union is ready to join forces with the French Presidency of the G20, to achieve concrete results”, he said. The Hungarian Presidency is committed to cooperating fully with the Parliament, for an agreement at the first reading over the Commission’s proposal on over-the-counter derivative options, Mr Martonyi reassured MEPs.