EU organic sector faces regulatory uncertainty

Subject The organic sector in the EU. Significance UK consumption of organic foods is recovering from sharp reductions experienced during the 2008-09 economic crisis. Across the EU as a whole, consumption was less affected by the downturn, but organic farmers across the bloc face high costs and sometimes aggressive supermarket buying policies. As a result, imports are rising to meet growing demand, raising concerns about labelling and quality controls. Impacts Biogas subsidies could continue to put especial pressure on costs for organic producers in Germany. The German government is likely to pursue measures to help the organic sector, amid producer complaints. European Parliament consideration of the amended organic regulation looks set to be contentious.

2018 ◽  
Vol 38 (3/4) ◽  
pp. 295-311
Author(s):  
Matilde Lafuente-Lechuga ◽  
Úrsula Faura-Martínez ◽  
Olga García-Luque

Purpose The purpose of this paper is to show evidence of the divergence of welfare outcomes in the European Union (EU) during the economic crisis, which made the European social model fail, and the convergence among European countries halt. This study reviews Sapir’s model for classifying European welfare state systems and adapts it to the new reality, taking into account Europe 2020 targets on poverty reduction and employment growth. Design/methodology/approach Two variables are used in the application of Sapir’s graphical analysis to European social models: the employment rate as efficiency indicator, and the people At Risk Of Poverty and/or Exclusion rate as equity indicator. Both efficiency and equity are present in Europe 2020 targets. In addition, a cluster analysis is applied. Findings The division of EU member states into four geopolitical social models has proved to be dynamic, changing in the period under analysis. As a consequence of the economic crisis and the fiscal consolidation, efficiency and equity levels across the EU are polarised between the Mediterranean and the Nordic models. Originality/value This paper shows the effects of the economic crisis in the EU, analysing the evolution between 2008 and 2014, and incorporating Eastern Europe new member states into the analysis.


Subject The government's preferred timetable for the UK referendum on EU membership. Significance The EU membership referendum will be a major event in both EU and UK political and commercial life. Prime Minister David Cameron's official position is that the poll could take place any time before end-2017. He is less concerned about the likely outcome of the referendum, which he is confident will produce an 'in' result, than about achieving a margin in favour of membership that decisively settles the question and minimises the damage to the Conservative Party arising from the process. Impacts The most likely referendum date is September 15, 2016. This timetable would make the key renegotiation period the first half of 2016, when the sympathetic Dutch government chairs the EU Council. The German government would also prefer the UK referendum to be dealt with relatively quickly.


Subject The European Parliament and the Transatlantic Trade and Investment Partnership. Significance The last-minute decision of the European Parliament (EP) to postpone a June 10 debate and vote on the Transatlantic Trade and Investment Partnership (TTIP) has exposed important divisions among its members (MEPs) over whether and how closer EU-US economic ties can be secured. While non-binding at this stage, the debate and vote would have provided important guidance to the European Commission on its priorities and room for manoeuvre as it engages in further negotiations with the United States. TTIP must ultimately be ratified by the EP, which has voted down international agreements in the past. Impacts The EP's difficulties in finalising its views could constrain the Commission in the TTIP negotiations. However, given the EP's ultimate veto over the deal, time spent now on hammering out an ISDS formula it could accept may not be wasted. Any rejection of TTIP, particularly over ISDS, could raise questions over future international trade deals premised on deep integration. TTIP rejection could even jeopardise concluded trade deals awaiting ratification, such as that between the EU and Canada. Progress on TTIP is among the measures sought by UK Prime Minister David Cameron before his EU membership referendum.


Significance Intensified political disputes between the main parties are holding up the state budget for 2020, including funding for local elections in November. They also threaten to weaken the response to the looming socio-economic crisis from the COVID-19 pandemic. Impacts The US entry ban on former senior SDA member Amir Zukic is seen as an attempt to persuade the party to behave more responsibly. The EU is in a contest with China, Russia and Turkey to retain influence in the region. Pre-election positioning may explain the defection of Fahrudin Radoncic’s Union for a Better Future party from the state-level government.


Subject Romania after Dragnea. Significance For much of the last five years that Liviu Dragnea controlled the Social Democrats (PSD), he also dominated the Romanian state politically. His 42-month sentence for corruption, handed down on May 27, has opened up a vacuum in the ruling PSD, and there is no obvious successor. The verdict came immediately after two electoral blows -- massive defeat in the European Parliament (EP) elections; and a resounding rebuff in a non-binding referendum in which over 80% opposed PSD attempts to amend or cancel anti-corruption legislation. Impacts President Iohannis is likely to assert himself in foreign policy, but has lost leverage in deciding senior judicial appointments. The presidential election this autumn may not be crucial in the tussle for power, as the presidency has much-reduced powers. The EU will be highly critical of Romania’s fast-increasing budget deficit, a legacy of the Dragnea era.


Subject Proposed reform of the EU comitology procedure. Significance The little-known ‘comitology’ procedure plays a key role in EU regulation. In recent years, this process has been breaking down as member-state expert representatives in comitology committees often abstain from voting, forcing the European Commission to take controversial decisions on its own (and accept any blame for them). In response, the Commission has proposed reforms that would pressure member states to take a position on (and hence political ownership of) controversial regulatory decisions. Impacts Government representatives, interest-group representatives and corporate lobbyists will be most affected by comitology reform. Despite adding transparency and avoiding blame-shifting to Brussels, the reforms would probably not help the EU’s image with citizens. The European Parliament might demand -- as part of any final reform package -- an increase in its involvement in the comitology process.


Subject EU responses to Russian actions around Ukraine. Significance EU sanctions imposed in 2014 remain in place owing to continuing concerns about Russian interference in elections, the poison attack on former spy Sergey Skripal and covert Russian activities in Ukraine and elsewhere. However, the EU has resisted pressure to take immediate action after the Kerch Straits incident, in which Russian coast guards captured three Ukrainian naval vessels. Impacts The US position on sanctions currently mirrors EU restraint, but Washington would be forced to act by blatant Russian aggression. Ukraine will call for EU support while using legal action in an attempt to hamper Gazprom's alternative gas export routes. European Parliament resolutions condemning Nord Stream 2 will have little impact on German support for the project.


Subject Prospects for the EU to end-2019. Significance Centrists will still be the dominant force in the European Parliament (EP), accounting for around 70% of its members (MEPs). Nevertheless, the fragmentation of the centre coupled with the rise of Green and Eurosceptic parties will limit the scope for consensus-based politics, potentially reducing the EP’s influence with the European Commission and Council.


Significance The manner of the UK move is not only damaging for the implementation of the Northern Ireland Protocol (NIP), but also has the potential to affect the wider EU-UK trading relationship. Impacts Low levels of trust will make it difficult for the EU and UK teams to find practical solutions to the NIP’s implementation. A further deterioration in EU-UK relations over the NIP could threaten the ratification of the EU-UK trade deal in the European Parliament. The United Kingdom’s threats to break international law threaten to damage its credibility among foreign and international actors.


Subject The EU’s digital single market. Significance The Commission proposed Bulgarian member of the European Parliament (MEP) Mariya Gabriel as the new commissioner for digital policy on May 16. The appointment came as a review of progress on the EU’s digital single market strategy shows mixed results to date. Impacts Gabriel is likely to be approved by the Parliament, and her background as MEP will compensate for her lack of relevant experience. A fully functioning digital single market could add 415 billion euros (464 billion dollars) to the EU’s GDP per year. The recent ransomware attack will give added urgency to action at the EU level, though countries may be reluctant to surrender sovereignty.


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