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Do you believe this is right?
Graham_Devon
Posts: 58,560 Forumite
To start with, I can see why they are doing it. It protects farmers etc.
However, the EU are propping up fruit and vegetbale prices, with a €125m subsidy in the wake of the russian import ban.
This is in order to protect from a glut of vegetbales hitting the EU markets and to therefore protect prices. I would assume this food then just gets burnt, binned or whatever.
So, is it right? If so, where does political intervention to stop prices falling end? We know they have done it for houses, vegetables and cars, all in order to stop things getting cheaper through oversupply.
But how far would you take it? Would you do it to all goods that threatened lower consumer end prices? If so, do you still believe we live in a "free market"?
And how do you feel from a consumer point of view? These people (and us!) will be paying taxes to prevent us getting lower prices.....
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11041081/EU-to-spend-125m-to-prop-up-fruit-and-vegetable-prices-against-Russian-sanctions.html
However, the EU are propping up fruit and vegetbale prices, with a €125m subsidy in the wake of the russian import ban.
This is in order to protect from a glut of vegetbales hitting the EU markets and to therefore protect prices. I would assume this food then just gets burnt, binned or whatever.
So, is it right? If so, where does political intervention to stop prices falling end? We know they have done it for houses, vegetables and cars, all in order to stop things getting cheaper through oversupply.
But how far would you take it? Would you do it to all goods that threatened lower consumer end prices? If so, do you still believe we live in a "free market"?
And how do you feel from a consumer point of view? These people (and us!) will be paying taxes to prevent us getting lower prices.....
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11041081/EU-to-spend-125m-to-prop-up-fruit-and-vegetable-prices-against-Russian-sanctions.html
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Comments
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Graham_Devon wrote: »To start with, I can see why they are doing it. It protects farmers etc.
However, the EU are propping up fruit and vegetbale prices, with a €125m subsidy in the wake of the russian import ban.
This is in order to protect from a glut of vegetbales hitting the EU markets and to therefore protect prices. I would assume this food then just gets burnt, binned or whatever.
So, is it right? If so, where does political intervention to stop prices falling end? We know they have done it for houses, vegetables and cars, all in order to stop things getting cheaper through oversupply.
But how far would you take it? Would you do it to all goods that threatened lower consumer end prices? If so, do you still believe we live in a "free market"?
And how do you feel from a consumer point of view? These people (and us!) will be paying taxes to prevent us getting lower prices.....
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11041081/EU-to-spend-125m-to-prop-up-fruit-and-vegetable-prices-against-Russian-sanctions.html
CAP was the founding principle of the EU so I guess no surprise here0 -
Graham_Devon wrote: »To start with, I can see why they are doing it. It protects farmers etc.
However, the EU are propping up fruit and vegetbale prices, with a €125m subsidy in the wake of the russian import ban.
If so, do you still believe we live in a "free market"?
Exactly where do you think the line for this "free market" is drawn? Can I pay people what I want (no: minimum wage), let them go when I want (no: employment law), perhaps I can import solar panels from China with fees (no: tariffs due to anti-dumping regulations), can I sell guns to the Syrian government (no: restricted arms licenses)...
There has never, ever, been anything close to a fully free market anywhere in the world, at least since the dawn of civilisation. Giving farmers something like €0.15 per person living in the EU as they are being targetted by a foriegn government doesn't even come close to affecting where we are on the closed<->open market spectrum.Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...0 -
There will be a significant risk of lots of farms going under if they weren't subsidised after this event. Then next year we would have an extreme shortage of supply as effectively the tap for new production will be turned off.0
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There will be a significant risk of lots of farms going under if they weren't subsidised after this event. Then next year we would have an extreme shortage of supply as effectively the tap for new production will be turned off.
do you have any evidence that there is a significant risk of many farmers going under?
do farmers not know there are good years and bad years and make suitable provision?0 -
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Out,_Vile_Jelly wrote: »They used to have more flexibility, but the demands of the big supermarkets have changed that.
no idea what that has to do with selling to Russia0 -
The entire EU market will lose 5.25 bn Euros.do you have any evidence that there is a significant risk of many farmers going under?
do farmers not know there are good years and bad years and make suitable provision?
Farmers have already said they will go bust with the embargo http://en.itar-tass.com/opinions/18700 -
CAP was the founding principle of the EU so I guess no surprise here
On a point of order.
Actually it was steel and coal. As in the European Coal and Steel Community. The CAP wasn't introduced until 1962, 5 years after the Treaty of Rome was signed. But never mind that, the CAP was one of the first tangible consequences of the Treaty, and has ever since been regarded as one of the cornerstones of the whole European project. So it would be odd for someone to express surprise at the fact that the EU is taking action to protect farm incomes, when that is the whole point of the CAP in the first place.0 -
do you have any evidence that there is a significant risk of many farmers going under?
do farmers not know there are good years and bad years and make suitable provision?
Farmers are people, just like anyone else. Look at the posts on here form other people to see just how any make no provision at all for the lean times.0 -
Odd the way farmers incomes are protected, but general workers incomes in the UK are being forced down by open borders.
Could it be that France has some of the most inefficient small farms in the world?0
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