Brussels, 22/04/2008 (Agence Europe) - The hike in food prices is the subject of all the different international organisations' (UN, World Bank) concerns and led to action by the European Parliament on 22 April in Strasbourg. The debate focused on the multiple causes of this phenomenon and its effects in the EU and particularly the developing countries. A consensus was obtained on the need to take swift action at an international level. There is a need to provide a short term response to the urgent food requirements of people threatened by famine and everyone agreed that the time had come to profoundly rethink world agriculture in an effort to stem the insecurity resulting from the major food crisis (the UN has identified insecurity across the board not just in the area of food), which has led to a swathe of hunger riots as an initial prelude.
Addressing MEPs, Louis Michel, the Commissioner for development and humanitarian aid underscored the fact that the brutal food price hikes since the beginning of the year had provoked greater awareness across the globe with regard to world food challenges, as testified by the programming of an international conference on the Green revolution in Africa, at the beginning of May. Michel stressed that the phenomenon does not just go back to yesterday: since 2000, the price in dollars for wheat has tripled and those for rice and corn have doubled. The beginning of 2008 corresponds to a new rise of 20%. “This phenomenon in industrialised countries is translated into concerns over purchasing power, in developing countries by the risk of famine for entire populations”. He also pointed out that all the different analyses converged towards one observation, “the epoch of low food prices on the international market is over…price volatility and the risks of this being exacerbated will continue if measures are not taken rapidly”. Louis Michel spoke about a “serious threat of political, financial, economic and social destabilisation for many states throughout the world”. Consequently, “the reaction has to be rapid. It is the whole international community that has to move” in the short term to save lives and in the medium to long term to act on both fronts. “It would be the greatest mistake to provide a structural problem (food insecurity) a humanitarian response (food aid),” he warned. He announced that, in the short term, the Commission intended, with the agreement of the budgetary authority, to make available €60 million of new additional money from the emergency reserve, taking food aid to €283.25 million for 2008. In the longer term, “the only valid response” is to help African agriculture -“the least productive in the world today” - to make the most of “its enormous potential”. The Commission is doing this through the doubling of the funding available to agriculture and rural development in the 10th EDF (€1.2 billion), Michel said.
On behalf of the Council, Slovenian Secretary of State for European Affairs Janez Lenarèiè spoke of the EU's great concern, “aware of the seriousness and size of the problem which has a considerable potential impact on the poorest countries”. Speaking about the difficulties in supply, combined with the increase in demand and the impact of biofuels, the president gave assurances that a Council working group was “preparing clear criteria to ensure sustainable biofuel production with the least possible impact on the poorest countries”.
“Today, Europe has suddenly become aware that it more than ever needs agriculture to ensure its food security,” said Joseph Daul (EPP-ED, France).
He went on to stress the need for structural reforms in global agriculture, for the promotion of economically viable farming and for the self-sufficiency of emerging countries. Although biofuels are accused of all ills, Mr Daul remarked that they only make up 2% of agricultural production in Europe. “Let us keep these 2% for developing future agrichemicals”, he said, in favour of the CAP Health Check providing an opportunity to promote agronomical research and to launch reflection on GMOs “rather than recommend simplistic and purely economic solutions”. Martin Schulz (PES, Germany), for his part, lambasted the hedge funds that have taken over the food sector. There is speculation on the rise in food prices to make maximum profits, thus creating shortages. Casino capitalism is now at the poor man's table, he exclaimed, saying it was a “moral scandal” and calling for international control of financial markets. In his view, reform of the CAP must provide an opportunity to look at the role of export subsidies, at the possibilities of giving preference to biochemical biofuels. Graham Watson (ALDE, UK) expressed alarm at a phenomenon that compromises the aim of reducing poverty in the world by half by 2015, but the accusations against biofuels, he felt, were over the top. He calls for the EU to do everything it can to ensure the success of the fight against climate change and the WTO Doha Round to achieve a sustainable agriculture at global level. Friedrich Wilhelm Graefe zu Baringsdorf (Greens/EFA, Germany) said biofuels are not the be all and end all as “their energy result is not good and they maintain speculation”. Luisa Morgantini (GUE, Italy) said she was in favour of a five year moratorium on biofuels proposed by Jean Ziegler and welcomed the emphasis placed by Louis Michel on aid to African smallholders. (A.N.)