Federal Minister of Agriculture, Alois Rainer of the CSU, has rejected the sugar tax, which was supported by Federal Minister for Health, Nina Warken of the CDU. Speaking to the “Frankfurter Allgemeine Zeitung”, Rainer stated that he is “not a friend of the sugar tax” and doubts it will generate the promised health benefits or noticeable savings in the healthcare sector. He contrasted the expected revenue of around 100 million euros with the billions of euros already spent within the healthcare system. Instead of implementing new regulatory taxes, Rainer advocates for voluntary agreements with the business sector aimed at reducing intake of sugar, fats, and salt, emphasizing that this current strategy should be maintained.
In discussions regarding EU agricultural policy, Rainer opposed redesigning the Common Agricultural Policy (CAP) after 2027. He argued against integrating the CAP into a single funding pool alongside other policy areas. According to Rainer, the funding planned by the EU Commission would not properly reflect the importance of agriculture. He insisted that agricultural financing must be substantial, stating that issues of food and supply security should be valued as highly as defense. Furthermore, he warned against a “cannibalization” of allocated funds if EU resources were bundled for agriculture with areas like migration or social policy, citing agriculture’s role as critical infrastructure.
Concerning food prices, Rainer asserted that the state should not interfere with price setting, as prices are determined by supply and demand. While he noted that current outliers were due to the Iran conflict, he stated that this situation is being closely monitored. He argued that affordable food commodities depend on economically strong businesses, and that food should reflect its true value-for instance, 99 cents for half a pound of butter is insufficient. Simultaneously, he opposed a state-imposed beef levy, referring instead to the fact that commodity price increases have exceeded 30 percent in recent years.
To bolster farmers, Rainer announced several measures and support packages. He designated the temporary reduction of the energy tax on diesel and gasoline by 17 cents as the initial step. On the European level, the federal government intends to package measures to tackle high fertilizer prices, including customs relief for imported fertilizer, thereby strengthening European production. Additionally, Rainer revealed plans for a “bureaucracy reduction package specifically for agriculture” which is expected to be implemented this year. He added that he aims to strengthen the position of farmers in the supply chain and collaborate on EU-level fair competition conditions, particularly in revising directives against unfair trade practices.
