The European Commission is putting the final touches on an announcement about expensive fertilizer. According to leaked draft versions, Brussels will not introduce a new EU fertilizer subsidy or a comprehensive action plan. However, EU countries will be allowed even more to use existing subsidy funds for fertilizer.
The announcement is scheduled to be published on Wednesday, according to current plans. The Brussels announcement is likely to be a disappointment for several EU countries. For example, Spain and France had requested a genuine fertilizer policy. Agricultural Commissioner Janusz Wojciechowski held talks on this matter a few weeks ago with European fertilizer producers such as Yara and Borealis.
European agricultural umbrella organizations have been asking for some time to lift the EU import duties on (i.e., American and Russian) fertilizer. They can produce it cheaper (without expensive gas). However, European fertilizer manufacturers oppose this. Their competitive position is already not too rosy, and the fertilizer market is increasingly controlled by large Chinese and Russian chemical corporations.
It now appears that Brussels will heed these European companies, maintaining import duties in 2023. If the situation worsens, adjustments can still be made later. The same applies to the (currently: rejected) German funding proposal. Germany wants 'new' EU funds for fertilizer purchases, partly financed through an EU-wide fertilizer tax.
Brussels does want the EU countries to include an exemption in their energy emergency plans for factories that produce fertilizer. These should be excluded from discounts or restrictions.
A leaked draft of the announcement further shows that the European Commission adheres to the Farm to Fork strategy, which aims to reduce fertilizer use by about twenty percent over eight years. The Commission wants to encourage increased use of 'natural fertilizers,' but warns that this should take into account smaller harvests and lower yields.
It is not yet clear under which EU Commissioner this fertilizer plan falls. Agricultural Commissioner Wojciechowski has been extensively involved, but also his colleagues Timmermans (Climate), Sinkevicius (Environment), and Kyriakides (Health)