Home World EU in turmoil as Emmanuel Macron backs restrictions on £1bn Ukraine deal

EU in turmoil as Emmanuel Macron backs restrictions on £1bn Ukraine deal


France has thrown its weight behind a proposal to impose restrictions on duty-free imports of Ukrainian agricultural goods into the EU. The move seeks to limit the influx of Ukrainian poultry, eggs, sugar, and wheat into European markets, valued at over €1billion (£845m) annually.

The decision comes amid crucial negotiations aimed at extending the duty-free trade regime introduced to bolster the Ukrainian economy following Russia’s illegal invasion. France’s alignment with Poland on this matter has set it at odds with key allies such as Germany, the Netherlands, and Scandinavian nations.

Emmanuel Macron’s support for the restrictions, revealed during a meeting of ambassadors in Brussels, has sparked controversy. It is seen as a departure from France’s previous stance and has raised eyebrows particularly due to Macron’s earlier commitments to support Ukraine.

“The most cynical thing about this is the two member states leading the charge on this, Poland and France, are the two that are the most vocal in saying we must do everything to help Ukraine,” an EU diplomat told The Telegraph, highlighting the contradiction in France’s position.

France’s sudden shift in position has been attributed to Macron’s meeting with Donald Tusk, the Polish prime minister, in Berlin, which seemingly influenced France’s stance on the matter.

This move aligns France with countries like Hungary and Slovakia, whose governments have been perceived as more sympathetic towards Russia.

As negotiations progress, Belgian diplomats are engaging with European Parliament negotiators to reach a consensus on the proposed restrictions. Key concerns include the criteria for assessing the impact of Ukrainian imports on member states’ markets.

The decision to restrict Ukrainian agricultural sales has significant implications, with estimations suggesting a loss of over €1billion annually for Ukraine. This retreat ahead of the EU leaders’ summit is poised to impact Ukraine’s economy deeply, particularly amidst ongoing conflict and instability in the region.

While the move is seen as a victory for the EU’s farming lobby, which has successfully lobbied for measures to shield them from competition, it raises questions about the bloc’s commitment to supporting Ukraine amid pressure from interest groups.

In this complex geopolitical landscape, Ukrainian farmers emerge as clear losers, facing substantial revenue losses. Additionally, European consumers may experience reduced supply and increased food prices, further exacerbating food price inflation within the EU.

LEAVE A REPLY

Please enter your comment!
Please enter your name here