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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
Supermarket food stalls (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

European elections: The 5 numbers you need to understand the EU

Here are five key figures about the European Union, which elects its new lawmakers from June 6-9:

European elections: The 5 numbers you need to understand the EU

4.2 million square kilometres

The 27-nation bloc stretches from the chilly Arctic in the north to the rather warmer Mediterranean in the south, and from the Atlantic in the west to the Black Sea in the east.

It is smaller than Russia’s 17 million square kilometres (6.6 million square miles) and the United States’ 9.8 million km2, but bigger than India’s 3.3 million km2.

The biggest country in the bloc is France at 633,866 km2 and the smallest is Malta, a Mediterranean island of 313 km2.

448.4 million people

On January 1, 2023, the bloc was home to 448.4 million people.

The most populous country, Germany, has 84.3 million, while the least populous, Malta, has 542,000 people.

The EU is more populous than the United States with its 333 million but three times less populous than China and India, with 1.4 billion each.

24 languages and counting

The bloc has 24 official languages.

That makes hard work for the parliament’s army of 660 translators and interpreters, who have 552 language combinations to deal with.

Around 60 other regional and minority languages, like Breton, Sami and Welsh, are spoken across the bloc but EU laws only have to be written in official languages.

20 euro members

Only 20 of the EU’s 27 members use the euro single currency, which has been in use since 2002.

Denmark was allowed keep its krona but Bulgaria, the Czech Republic, Hungary, Poland, Romania and Sweden are all expected to join the euro when their economies are ready.

The shared currency has highlight the disparity in prices across the bloc — Finland had the highest prices for alcoholic beverages, 113 percent above the EU average in 2022, while Ireland was the most expensive for tobacco, 161 above the EU average.

And while Germany produced the cheapest ice cream at 1.5 per litre, in Austria a scoop cost on average seven euros per litre.

100,000 pages of EU law

The EU’s body of law, which all member states are compelled to apply, stretches to 100,000 pages and covers around 17,000 pieces of legislation.

It includes EU treaties, legislation and court rulings on everything from greenhouse gases to parental leave and treaties with other countries like Canada and China.

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