The European Union is using £100m of public money in order to keep food prices artificially high across the continent – with British taxpayers funding the move which means consumers are effectively paying for food three times over.
Earlier this month Breitbart London reported that in response to EU-imposed sanctions, Russia was adopting a ban on importing goods from European Union countries, hurting farmers across the continent.
The embargo, which was enacted in early August came in response to a series of asset freezes and sanctions made by the European Union (EU) on Russia, which were in turn made in protest over action in the Ukraine.
EuObserver now reports money levied from EU member states through taxation and borrowing will be paid to growers of tomatoes, carrots, white cabbage, peppers, cauliflowers, cucumbers, and gherkins, mushrooms, apples, pear, red fruits, table grapes, and kiwis.
The European Commission has decided to take this action as EU farmers have been unable to find alternative markets for these perishable goods. Rather than allow fruit and vegetables to flood the European Market to the benefit of ordinary consumers (prices would fall) the EC will subsidise this food going to waste, which will keep prices artificially high and maintain producers profit margins.
This £100 million injection is just the latest measure of support from the EU for farmers hit by the blocs political decisions, with £24 million already announced to support just peach and nectarine growers. Many other foodstuffs covered by the embargo including meat, milk, and fish have yet to be considered by the European Committee which will be meeting several times over the coming months to decide whether they also need support.
The commission has a fund of £335 million to deal with problems like these, of which it has already committed nearly half without looking at the more expensive meat and dairy producers, so total costs may spiral beyond the budget.
Because this fund is being used to prop up food producers, consumers are effectively paying for food three times; once for the market price of fruit & veg, again for the premium of artificially inflated prices, and finally for the subsidy itself through taxes.