News in brief:
– IMF managing director Kristalina Georgieva warns European governments not to yield to the demands of protesting farmers.
– While expressing empathy for the challenges that farmers faced, she warned that excessive concessions could hinder necessary economic measures, and called for delicate balance.
During a recent press briefing at the International Monetary Fund’s offices in Washington, managing director Kristalina Georgieva cautioned European governments against succumbing to the demands of protesting farmers. The ongoing demonstrations, spanning countries like Germany, France, Italy, Belgium, and Greece, seek concessions from European leaders in the run-up to upcoming elections.
Expressing empathy for the farmers, Georgieva acknowledged the challenges they face in their demanding profession. “On the human level, I understand they face more hardship, and it is not easy to do the job they do,” she said.
However, she warned against governments yielding to the sentiments of the protests to the extent that it hampers necessary economic measures. “If that sentiment continues and it pushes governments in a corner in which they find themselves unable to do what is necessary for the strength of the economies, then there may be days to regret,” she emphasised.
Brussels protests and Macron’s announcement
Thousands of farmers converged in Brussels on Thursday during a meeting between French President Emmanuel Macron and European Commission chief Ursula von der Leyen for “The Future of European agriculture” summit. Ahead of the forum, Macron revealed that the EU had agreed to “impose stricter rules” for cereal and poultry imports, including those from Ukraine.
Addressing the protests during a broader briefing, Georgieva highlighted the challenge faced by policymakers, particularly finance ministers, in managing fiscal consolidation. “It’s easy to give it; it’s tough to take it back,” she remarked.
Georgieva called on governments worldwide to focus on rebuilding fiscal buffers depleted by the Covid-19 pandemic. Her recommendations included closing tax loopholes and assessing the quality of existing public spending.
As the protests continue to reverberate across Europe, her words serve as a cautionary note on the delicate balance between addressing the concerns of farmers and ensuring the overall economic resilience of nations. Governments now find themselves at a crossroads, torn between supporting a vital sector and making tough economic decisions for the greater good.
