Paying for profiteering
Poland is facing a massive EUR 165 (zł.674) million fine for hoarding stocks of key commodities, mainly sugar, in the run up to unification last May.
It has been identified as the worst offender in a report drawn up to examine whether producers had attempted to cash in on the higher prices offered in the EU market.
The document, which is due to be presented to the this week, shows that the governments of the 10 EU newcomers face a total of EUR 465 (zł.1,900) million in fines.
"Compared to the previous enlargement to Austria, Finland and Sweden, significant quantities [of excess stocks] have been identified," the report drafted by the European Commission's agriculture department concludes. The Czech Republic was the second worst offender and faces fines totaling EUR 99.73 (zł.407.6) million.
In some smaller countries, the proposed fines represent a huge burden on the public budget. Estonia, for example, comes in at top of the list for speculative sugar hoarding and has spent months trying to argue its case in Brussels.
Worried about traders filling warehouses and families snapping up anything from beef and grain to garlic and yogurt for sale after the 2004 accession date, the EU threatened large fines for newcomers where stocks were unusually high. The idea was to stop the hoarding of commodities for sale later at EU prices that are mostly way above the world average. Sugar offered the most profit for unscrupulous traders as EU prices are more than three times higher than the world market.
For cereals, the collective fine will be around EUR 5 (zł.20.4) million for stocks of 80,000 tonnes. Dairy, rice and fruit and vegetables also feature prominently on the list of products. (Reuters)
It has been identified as the worst offender in a report drawn up to examine whether producers had attempted to cash in on the higher prices offered in the EU market.
The document, which is due to be presented to the this week, shows that the governments of the 10 EU newcomers face a total of EUR 465 (zł.1,900) million in fines.
"Compared to the previous enlargement to Austria, Finland and Sweden, significant quantities [of excess stocks] have been identified," the report drafted by the European Commission's agriculture department concludes. The Czech Republic was the second worst offender and faces fines totaling EUR 99.73 (zł.407.6) million.
In some smaller countries, the proposed fines represent a huge burden on the public budget. Estonia, for example, comes in at top of the list for speculative sugar hoarding and has spent months trying to argue its case in Brussels.
Worried about traders filling warehouses and families snapping up anything from beef and grain to garlic and yogurt for sale after the 2004 accession date, the EU threatened large fines for newcomers where stocks were unusually high. The idea was to stop the hoarding of commodities for sale later at EU prices that are mostly way above the world average. Sugar offered the most profit for unscrupulous traders as EU prices are more than three times higher than the world market.
For cereals, the collective fine will be around EUR 5 (zł.20.4) million for stocks of 80,000 tonnes. Dairy, rice and fruit and vegetables also feature prominently on the list of products. (Reuters)
