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ECR Report: An Analysis of the European Agro-Industrial Sector

Trade and Economics - November 7, 2024

Understanding in depth, truly understanding how important the agro-industrial sector is and how to make the most of it as a central pillar of the European economy. Always standing close to workers, farmers, breeders, and all professionals connected to this world, the European Conservatives and Reformists Party has taken it upon itself to explore the sector’s challenges and opportunities. On October 29th, the ECR Party held a press conference in Brussels to analyze the current state of the European agro-industrial sector. This detailed work was supported by statistical data from Tecné and political perspectives, providing a comprehensive overview of the sector’s dynamics.

Antonio Giordano, Secretary General of the ECR Party, opened the proceedings by emphasizing the importance of a collaborative approach to support the primary sector. “Over the past year, France has exported agricultural goods worth over €76 billion, Italy €51 billion, and Poland €35 billion. At the recent G7 agriculture meeting, crucial topics such as sustainability, climate change, and food security were discussed. Investing in sustainable agricultural technologies is essential, and we at the ECR Party are committed to turning farmers’ contributions into concrete policies,” Giordano stated, reaffirming the need to unite efforts to protect both the primary sector and the land.

Sector Challenges and Priorities

Michela Morizzo, CEO of Tecné, presented a detailed study based on 4,500 interviews conducted in Italy, France, and Poland. The study highlighted the main priorities for workers and businesses, drawing attention to issues such as low wages, workplace safety, and precarious working conditions, alongside the growing relevance of environmental sustainability. The data show that 75.6% of Polish workers consider their wages inadequate, compared to 66% in France and 65.6% in Italy. Working conditions are particularly concerning for French workers, with over 70% reporting excessively long working hours, followed by 62% of Polish and 57% of Italian respondents.

From the business perspective, the study identified significant operational challenges, including rising raw material costs. Over 80% of companies surveyed in Italy, France, and Poland view these costs as a major obstacle to competitiveness and long-term sustainability. Moreover, access to credit remains a critical issue, with 51% of Italian companies and similar percentages in France and Poland reporting difficulties.

Another significant hurdle is the complexity of regulations. In Italy, 39% of businesses find regulatory frameworks overly burdensome, followed by 37% in Poland and 31% in France. This regulatory landscape hampers companies’ ability to adapt and thrive in a competitive market.

Political Vision and Future Prospects

Carlo Fidanza, head of Fratelli d’Italia’s delegation in the European Parliament, praised the results achieved by Italy’s current government under Giorgia Meloni. Fidanza highlighted how the Ministry of Agriculture, led by Francesco Lollobrigida, successfully managed to minimize farmer protests, which were significantly less intense in Italy than in France and Germany. According to Fidanza, the primary issue lies in European regulations, which impose increasingly stringent environmental standards, jeopardizing the competitiveness of businesses.

Bogdan Rzonca, a Polish MEP, also emphasized the need to revise the European regulatory system. Rzonca criticized environmental standards and trade policies that create disparities between EU farmers and those from non-EU countries. “We must protect our internal market from agricultural imports that undermine the competitiveness of our products. Strengthening our political and control tools is necessary to ensure fair conditions,” he stated.

Nicolas Bay, a French MEP, concluded the event with a critique of the limitations of current free trade agreements. Bay pointed out that such agreements leave local producers exposed to unfair competition, highlighting the risks posed by European environmental policies, which could stifle the growth and competitiveness of European businesses.

The conference underscored an agro-industrial sector that, despite its challenges, demonstrates a strong willingness to adapt and innovate. However, the sector’s future hinges on the ability of European and national institutions to adopt more flexible and targeted policies. Only by balancing environmental sustainability with economic competitiveness can prosperity and food security be ensured for the entire European region.