Europe makes a start to tackle food speculation

MEPs defy financial lobbyists after campaigners across Europe take action

At the end of last week, we joined forces with other European campaigners to try and get as many people as possible to ask their MEPs to vote to start tackling food speculation. Thank you to everyone who took the action, in the end the vote went well!

MEPs voted against amendments that would have weakened the proposals - even in the face of fierce lobbying by the financial sector. And amendments to strengthen this regulation were passed. So overall it’s a first step in the right direction.

This legislation has the potential to improve transparency for ‘over the counter’ derivatives, which up until now have taken place in secret and without regulation or oversight.

It will now go to the council of ministers (made up of the finance ministers of each of the member states) before going back to the parliament for a final vote later this year.

So even though this is step in the right direction, there is still much to fight for. This autumn, we are expecting the publication of the ‘Markets in Financial Instruments Directive’ (MIFID) which will outline the European commission’s proposals for financial reform, including provisions to curb excessive speculation on food prices. WDM will be working hard to ensure that these legislative proposals are strong enough to tackle damaging financial speculation and get the backing of the UK government.

Help us by emailing the government to get them to support proposals to curb excessive speculation.