IMF boss warns against giving in
Governments should not allow themselves to be blackmailed by farmers
February 2, 2024, 10:29 a.m
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The head of the International Monetary Fund shows understanding for the problems of farmers. However, Georgieva believes that giving in too much to their loud demands would be a mistake. Even though she knows how difficult it is.
The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warned European governments not to give farmers too much financial support amid weeks of protests. “On a human level, I understand their difficulties and it is not easy to do their job,” Georgieva said at a press conference in Washington, referring to the farmers.
“But if this feeling continues and it pushes governments into a corner where they can no longer do what is necessary to strengthen economies, then the time will come when they regret it.” The IMF head continued that she had spoken to many representatives of finance ministries. They would see how important budget consolidation is. “But they also recognize how difficult it is to withdraw support.” Georgieva added: “It’s easy to give; it’s difficult to take it back.”
In recent weeks, numerous farmers have taken to the streets in Germany, France and other European countries. In Germany, the protest was sparked by the planned cuts in state support. The federal government then abandoned the planned abolition of vehicle tax advantages for agricultural businesses. However, the elimination of subsidies for agricultural diesel will continue to be implemented – now gradually until 2026.
Meanwhile, EU Commission President Ursula von der Leyen promised farmers less bureaucracy on Thursday. She wanted to make a proposal to the member states shortly “to reduce the administrative burden,” she said at the end of the EU summit in Brussels.