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FARMING

Loi Egalim: France’s pricing law that curbs the power of supermarkets

France’s Prime Minister Gabriel Attal has announced a new bill to strengthen the 'Egalim rules' on food prices, in an attempt to head off more farmer protests - here's what the law says and why farmers argue that it doesn't go far enough.

Loi Egalim: France’s pricing law that curbs the power of supermarkets
Checks will be stepped up to ensure that French supermarkets are abiding by pricing rules. Photo by Denis CHARLET / AFP

“The Egalim laws rebalance things, but they must be further strengthened,” Attal said during a press conference detailing the implementation of the government’s promises, following recent nationwide protests by farmers.

The Egalim changes were part of a package of measures announced on Wednesday in an attempt to head off further protests by farmers.

Latest French farmers re-start protests and roadblocks

So what are the ‘Egalim laws’?

Essentially they control the price of food for French consumers and are an attempt to limit the power of large supermarket chains and wholesalers and protect France’s farmers.

In some countries, including the UK, the price of fresh produce is often dictated by the supermarket chains, leaving farmers little choice about the price they get for their goods.

In France, the law attempts to give more power to the people who produce items like fruit, vegetables, milk and meat. Visitors from countries like the UK and USA often notice that fresh produce is more expensive in French supermarkets, and the Egalim law is part of the reason why.

Attal said on Wednesday: “We cannot accept […] that a manufacturer agrees a price with a distributor before turning to the producer to impose this price.

“The construction of the price must start with the producer and the industrialist, then large-scale distributors.” 

Egalim I

The first Egalim law, enacted in 2018 aimed to redress the balance of power between producers and supermarkets. Under this law, it is farmers, grouped into producer organisations, who propose a sale price based on their production costs. 

The law also provides a stricter framework for promotions, and obliges supermarkets to make at least a 10 percent margin on all food products – so they can pay better rates to manufacturers and producers.

French laws are often named after the politicians who passed them – eg the Loi Veil which legalised abortion or the Loi Toubon which regulates the use of the French language – but in this case Egalim is not a person, but a contraction of États Généraux de l’alimentation (general assembly of food).

Egalim II

A year after the first Egalim law was passed, an assessment by the French Senate found that “not enough had been done”. 

So, a second Egalim law was passed in 2021, intended to reinforce the first law, notably by prohibiting negotiation on the cost of raw materials – such as meat or milk. 

Descrozaille, or Egalim III

The Descrozaille law, also known as Egalim 3 and passed in 2023, goes even further, by allowing deliveries to supermarkets to be stopped if they wish to buy cheaper.  

Have they worked?

The constant tinkering – coupled with the farmers’ fury and Attal’s consequent announcement on Wednesday – suggest that the laws are not working as intended.

Farmers have long said that checks to ensure the existing laws are being applied are not being carried out. Ahead of any new bill in the summer, Finance Minister Bruno Le Maire has promised that the government will step up controls to ensure existing laws were being met.

The parliamentary ‘evaluation mission’, entrusted to MPs Alexis Izard (Renaissance) and Anne-Laure Babault (MoDem), is expected to announce its findings in the Spring.

READ ALSO ANALYSIS: ‘Farming doesn’t feed us’: The story of France’s ailing agriculture

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POLITICS

8 things you never knew about Andorra

The tiny statelet nestled in the Pyrenees mountains that mark the border between France and Spain hit the headlines with its new language requirement for residency permits – but what else is there to know about Andorra?

8 things you never knew about Andorra

This week, Andorra passed a law setting a minimum Catalan language requirement for foreign residents

It’s not often the tiny, independent principality in the mountains makes the news – other than, perhaps, when its national football team loses (again) to a rather larger rival in international qualifying competitions.

The national side are due to play Spain in early June, as part of the larger nation’s warm-up for the Euro 2024 tournament in Germany. Here, then, in case you’re watching that match, at Estadio Nuevo Vivero, are a few facts about Andorra that you can astound your fellow football fans with…

Size matters

Small though it is – it has an area of just 468 square kilometres, a little more than half the size of the greater Paris area – there are five smaller states in Europe, 15 smaller countries in the world by area, and 10 smaller by population.

People

Its population in 2023 was 81,588. That’s fewer people than the city of Pau, in southwest France (which is itself the 65th largest town in France, by population).

High-living

The principality’s capital, Andorra la Vella (population c20,000 – about the same population as Dax) is the highest capital city in Europe, at an elevation of 1,023 metres above sea level. 

Spoken words

The official language – and the one you’ll need for a residency permit – is Catalan. But visitors will find Spanish, Portuguese and French are also commonly spoken, and a fair few people will speak some English, too.

Sport

We’ve already mentioned the football. But Andorra’s main claim to sporting fame is as a renowned winter sports venue. With about 350km of ski runs, across 3,100 hectares of mountainous terrain, it boasts the largest ski area in the Pyrenees.

Economic model

Tourism, the mainstay of the economy, accounts for roughly 80 percent of Andorra’s GDP. More than 10 million tourists visit every year.

It also has no sales tax on most items – which is why you’ll often find a queue at the French border as locals pop into the principality to buy things like alcohol, cigarettes and (bizarrely) washing powder, which are significantly cheaper.

Head of state

Andorra has two heads of state, because history. It’s believed the principality was created by Charlemagne (c748 – 814CE), and was ruled by the count of Urgell up to 988CE, when it was handed over to the Roman Catholic Diocese of Urgell. The principality, as we know it today, was formed by a treaty between the bishop of Urgell and the count of Foix in 1278.

Today, the state is jointly ruled by two co-princes: the bishop of Urgell in Catalonia, Spain and … the president of France, who (despite the French aversion to monarchy and nobility) has the title Prince of Andorra, following the transfer of the count of Foix’s claims to the Crown of France and, subsequently, to the head of state of the French Republic. 

Military, of sorts

Andorra does have a small, mostly ceremonial army. But all able-bodied Andorran men aged between 21 and 60 are obliged to respond to emergency situations, including natural disasters.

Legally, a rifle should be kept and maintained in every Andorran household – though the same law also states that the police will supply a firearm if one is required.

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