Agriculture Minister asserts no impending shortages or price surges in the agricultural sector
Federal Minister of Agriculture Alois Rainer (CSU) has expressed confidence in maintaining food supply and avoiding price increases, despite the current difficult conditions faced by farmers. In an interview with "Bild am Sonntag", Rainer stated that farmers are adept at dealing with changing weather conditions and will ensure adequate food production.
Rainer, however, did not provide specific details on the reasons for the increased food prices or how farmers are ensuring adequate food production under difficult conditions. He also dismissed the idea of state interventions such as price brakes for food, stating that market-based solutions should be preferred.
Rainer's stance on state interventions is consistent with his previous statements. He also rejected the introduction of a reduction in Value Added Tax (VAT) on food as a state intervention, echoing the stance of the current finance minister, Markus Marterbauer. Marterbauer emphasized government efforts to counter inflation and boost the economy, supporting a "cost-down package" aimed at lowering prices in areas including food, energy, rents, and state-imposed fees.
The president of the farmers' association also expects an average harvest this year. Rainer's comments suggest a preference for market-based solutions over state interventions, although he did not express concern about the recently increased food prices.
The minister did not provide specific details on the current weather conditions affecting food production or any specific plans for addressing the increased food prices. His comments come as farmers are currently facing difficulties during the grain harvest due to persistent rain.
In a broader context, the debate on state interventions in the food market and VAT on food continues to be a topic of discussion in Germany. Rainer's comments reiterate his belief that state interventions should be avoided, while Marterbauer's stance focuses on broader inflation control rather than specifically responding to Rainer's proposal on reducing VAT on food.
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