Brussels, 02/12/2008 (Agence Europe) - On Wednesday 3 December, the European Commission is to adopt a communication containing a roadmap on improving the functioning of the food supply chain. This document, which was prepared by the services of European Commissioners Joaquin Almunia (Economic Affairs) and Mariann Fischer Boel (Agriculture), suggests, amongst other things, reviewing the body of rules which, in a number of countries in the EU, restrict the opening hours of food shops.
In response to the increase in the prices of numerous foodstuffs, the European Commission adopted a communication on 20 May this year on facing up to the increase in food prices. Amongst other things, the Commission proposed following developments on prices better, analysing speculative investments and investigating the functioning of the food supply chain. Last June's European Council called on the Commission to report back on these subjects before the end of 2008.
The communication reiterates that the sharp decline in food prices over the last few months should translate into a drop in the inflation of food prices. However, structural factors (growth in world demand for food, the appearance of new commercial outlets, such as bio-fuels) should all work to keep prices high in the medium term. The Commission takes the view that there is nothing to lead it to conclude that speculation played any significant role in the price formation process. However, the Commission is not ruling out measures to discourage these practices. In its roadmap on improving the functioning of the supply chain, the Commission tackles regulations restricting opening hours which, it claims, raise retailers' costs by limiting the possibility to sell products. It cautiously stresses that the reflection will be carried out on the basis of national consultations and the social partners. The Commission also proposes re-examining legislation in Europe which: - limits options for department stores and supermarkets to set up in rural or urban areas; - prevents retailers from selling their products for less than procurement costs. (L.C./transl.fl)