After large protests by farmers in Bucharest and other cities, the government has approved a support package for the agricultural sector. Farmers will be supported by the state to pay some of their interest rates on loans and the bills for the electricity used for irrigation. Under a programme entitled „Farmer’s credit”, the government is to allocate around 165 million euros to pay some of farmers’ variable interest rate on loans in lei (ROBOR). Referring to the help with electricity bills, the government’s spokesman Mihai Constantin explains:
„A government decision was issued establishing reimbursement for up to 50% of expenses incurred with electricity used for irrigation, to be covered by the state budget. This decision to cover a significant part of irrigation expenses incurred by farmers last year is aimed at helping producers recover economically following the losses caused by the drought.”
Romania will benefit from 34 million euros from the European Union’s solidarity fund to make up for the losses suffered as a result of the 2022 drought. The money was already transferred in December last year and Romania has one year and a half to implement the support. The European Commission has recognised that the high costs of energy and living, the high inflation rate, the change of international commercial flows and the need to support Ukraine have all put pressure on the European agricultural sector. Moreover, the European cereal production dropped by 30% in a single year. Euro MP Carmen Avram made an X-ray of European agriculture:
„The European Commission is going full gas and wherever you look, it’s about the farmers. New sources of funding are being looked at, laws are being amended, state aid is being granted and, although problems differ, from the impact of Ukrainian cereals in the countries in the East to the dissatisfaction with the elimination of fuel subsidies in the West, the cause seems to be the same: the concurring crises that shook the farming sector and a legislative tsunami called the Green Deal. From 2019 since this Commission took over, 600 legislative initiatives have been announced.”
Carmen Avram admits, however, that the results of these actions are yet to be seen and hopes Romanian farmers will earn the right to the same amount of subsidies as their counterparts in the West.
(Daniela Budu, Radio Romania International)
