International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned European Union (EU) governments to reject calls for greater financial support from protesting farmers across the continent to avoid regrets.
Farmers from Germany, France, Italy, Belgium and Greece have staged protests in an effort to win concessions from European leaders ahead of upcoming elections. Georgieva told a news conference at the IMF's Washington office that she understood on a human level that farmers were facing more hardship, but if that mentality continues and pushes governments into a corner and they find themselves unable to do what is necessary to strengthen their economies , then they may regret it later, Reuters reported.
Thousands of farmers from across Europe protested in Brussels on February 1 during a meeting between French President Emmanuel Macron and European Commission chief Ursula von der Leyen on the “future of European agriculture .” After the meeting, Macron told reporters that France had convinced the EU to “impose stricter rules” on grain and poultry imports, including from Ukraine.
The IMF and many other global financial institutions have long opposed excessive subsidies in many sectors, including agriculture, because they create unfair competition. After a period of relative calm, the issue of agricultural subsidies is heating up in many parts of the world, including the EU. EU farmers say they are underpaid, stifled by excessive environmental regulations and competition from cheaper imports. Farmers say efforts by governments and retailers to curb food inflation have left many producers unable to cover high energy, fertilizer and transport costs.
In a related development, the IMF has lowered its growth forecast for the Eurozone, to just 0.9% growth in 2024, 0.3% lower than the forecast in October.
HUY QUOC
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