Farmers' protest in Europe: What has led to unrest across the continent?

Over the past month, agriculture has become a battleground in Europe as farmers took to the streets in a series of protests and demonstrations. From tractor convoys to street sieges, the continent has witnessed a surge of discontent among farmers, with grievances ranging from environmental regulations to unfair competition and bureaucratic red tape.

Farmers from at least nine European countries have united in protest, including Greece, Poland, Spain, Germany, France, Romania, Italy, Belgium, Portugal, and Lithuania. The roots of this discontent extend back to 2019 when Dutch farmers blocked roads in opposition to new nitrogen emission restrictions. Fast forward to late 2023, Polish food producers staged blockades at the Ukrainian border, demanding the reinstatement of policies lifted following Russia's invasion of Ukraine in 2022.

The reasons behind the protests vary from region to region but share common threads. Farmers decry the influx of cheap imports from neighbouring Ukraine, delayed subsidy payments, burdensome taxation, and stringent EU green regulations governing land use and emissions. Compounding these issues is the dilemma governments face, torn between supporting livelihoods and addressing climate change concerns.

Imports

In Eastern Europe, protests have erupted among farmers who condemn what they perceive as unjust competition stemming from significant imports from Ukraine. These imports, for which the EU has waived quotas and duties in the wake of Russia's invasion, have sparked outrage among Polish farmers. At the Ukrainian border, Polish farmers have taken drastic measures, blocking traffic in a move that Kyiv claims hampers its defence capabilities and aids Russia's objectives.

Simultaneously, Czech farmers have brought their tractors into downtown Prague, disrupting traffic near the farm ministry. The farmers argue that these imports drive down European prices and fail to adhere to the environmental standards imposed on EU farmers, intensifying their resentment.

Moreover, ongoing negotiations to finalise a trade deal between the EU and the South American bloc Mercosur have exacerbated concerns about unfair competition, particularly in the sugar, grain, and meat sectors, further fueling discontent among European farmers.

Unrest due to rules and bureaucracy

Farmers are expressing discontent with excessive regulations, particularly at the EU level. Of particular concern are the new subsidy regulations imposed by the EU, including a mandate to set aside 4 per cent of farmland fallow, effectively prohibiting its use for a certain period.

Moreover, farmers are critical of bureaucratic hurdles. French farmers argue that their government tends to complicate implementation. In Spain, farmers are grappling with what they describe as "suffocating bureaucracy" emanating from Brussels, which is undermining the profitability of their crops.

In Greece, farmers are advocating for higher subsidies and expedited compensation for crop damage and livestock losses resulting from the floods of 2023.

Increase in fuel costs

Meanwhile, farmers in Germany and France, the EU's primary agricultural producers, are protesting against proposals to phase out subsidies or tax incentives for agricultural diesel. Similarly, Greek farmers are calling for a reduction in diesel taxes to alleviate financial burdens.

In Romania, protests in mid-January predominantly focused on the soaring costs of diesel fuel.

Less income is a significant concern

Income disparities are also a significant concern among farmers. In France, many producers argue that government efforts to curb food inflation have left them unable to offset the escalating expenses associated with energy, fertilizer, and transportation.

In Poland, concerns revolve around the influx of inexpensive imports from Ukraine and EU regulations impacting local producers. 

Portugal laments inadequate state aid, exacerbated by bureaucratic red tape. In Romania, challenges include the high cost of diesel, insurance premiums, and compliance with stringent EU environmental laws, compounded by cheap imports from Ukraine. 

Belgium grapples with EU directives mandating the set-aside of 4 per cent of the land, alongside concerns over inexpensive imports and subsidies favouring larger farms. 

Lastly, Greek farmers demand higher subsidies and expedited compensation for flood-related losses while also facing issues with diesel taxes and rising electricity expenses amidst declining state and EU subsidies.

How have the governments responded?

Last month, the European Commission put forth a proposal to restrict agricultural imports from Ukraine by implementing an "emergency brake" for select products like poultry, eggs, and sugar, citing sensitivity concerns. However, producers argue that the proposed volume is still excessive.

Additionally, the commission has granted EU farmers an exemption for the year 2024 from the obligation to leave some of their land fallow while continuing to receive EU farm support payments. Instead, farmers would be required to cultivate crops without the use of pesticides.

French Prime Minister Gabriel Attal unveiled a series of measures to ensure that imported foods comply with France or the EU's pesticide regulations. Talks have also been initiated to negotiate higher prices for farmers and streamline bureaucratic procedures and regulations.

Paris and Berlin have responded to mounting pressure by reversing plans to eliminate subsidies or tax incentives on agricultural diesel. The government has taken steps in Romania to bolster diesel subsidies, address insurance rates, and expedite subsidy disbursements.

Meanwhile, Portugal's caretaker government has announced an emergency aid package totalling 500 million euros ($541 million), with 200 million euros ($217 million) allocated to alleviate the effects of a prolonged drought.