Brussels Edition: Fertilizer squeeze

EU is trying to respond to a surge in fertilizer prices ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up. EU agriculture ministers are meeting today in Brussels, with soaring fertilizer prices due to the war in the Middle East high on the agenda. Europe is highly dependent on imports of natural gas and ammonia to make fertilizers, and farmers have been feeling the squeeze as prices for nitrogen and phosphate-based fertilizers have jumped at the same time as energy input prices have risen. The European Commission earlier this month unveiled a fertilizer plan that seeks to cushion the costs for farmers. It includes a proposal to consider stockpiling fertilizers, as well as an increase in the agricultural reserve in the EU budget. To ease pressure in the near term, the EU on Friday announced it will temporarily lift customs duties on nitrogen-based fertilizers such as urea and ammonia. The impact will be limited as the bloc already imports a significant portion of nitrogen-based fertilizers duty-free. Furthermore, the suspension doesn’t apply to imports from Belarus and Russia due to the war in Ukraine. Ministers today made it clear that they want swift action on the Commission’s proposal. Looking ahead, the bloc’s executive arm is trying to encourage European countries to enhance domestic production and reduce reliance on imports of key inputs. It also wants to encourage an eco-friendly approach to fertilizer production, with Denmark’s Agriculture Minister Jacob Jensen highlighting the potential of green ammonia and biogas initiatives. More controversial is a call by some countries, including France, to exempt fertilizers from CBAM, the EU’s carbon border adjustment mechanism. The measure, which entered into force in January, puts a levy on certain imports that don’t adhere to EU climate standards. So far efforts to secure an exemption from fertilizer have gotten short shrift. Discussions on the future of the EU’s agriculture spending are also kicking off separately today as EU affairs ministers discuss the next seven-year budget in Brussels. A core group of countries that are net contributors to the budget are pushing for a reduction in the overall price tag including less spending on the Common Agricultural Policy, traditionally a big slice of the EU budget. The Latest Italian Prime Minister Giorgia Meloni accused the EU of restricting the bloc’s ability to grow and be competitive on the world stage. Simone Venturini, the candidate backed by Italy’s governing coalition, was elected mayor of Venice, in an unexpected win for Meloni. Hungarian Prime Minister Peter Magyar said he’ll sign a political accord with the EU later this week on the release of the bloc’s frozen funds. Uber has offered to take over Delivery Hero in a deal that would value the German delivery company at about €10 billion as it seeks to ramp up competition with DoorDash outside the US. Banks are going big on so-called significant risk transfer trades, a product that’s drawing ever-closer regulatory scrutiny. Seen and Heard on Bloomberg Karen Ward, JPMorgan Asset Management’s EMEA chief market strategist, says that investors are looking beyond the current geopolitical uncertainty to the investment opportunities resulting from increased public and private spending. “The more chaotic the world becomes, the more that’s creating spending,” Ward told Bloomberg Television. “I think that’s really what markets are focused on. Whatever happens in the next month or two, there’s a much bigger theme that’s at play.” she said. Chart of the Day A surge in Copenhagen home prices is spilling over to the rest of Denmark, posing growing risks to the country’s lenders, the central bank said. The warning in Nationalbanken’s financial stability report comes after it predicted such a scenario late last year. Apartment prices in the Danish capital surged 25% in the 12 months through April, according to data from Boligsiden. Coming Up Press Conference following meeting of EU Affairs Ministers later today in Brussels Press conference following EU-Albania Intergovernmental Conference in Brussels this evening European Economic Area Council tomorrow in Brussels Final Thought Shares in Ferrari fell today in Milan after the Italian company unveiled its first fully electric car over the weekend. The five-seat model priced at €550,000 marks a sharp break from the sports-car maker’s fuel-burning heritage. The drop shows the challenge Ferrari is facing as it tries to extend one of the world’s most profitable luxury-car brands into battery-powered models. Early negative reactions across analysts as well as social media zoomed in on the four-door model’s design, judged too similar to other electric models such as by Tesla. Like the Brussels Edition? Don’t keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |