Agriculture Minister Alois Rainer (CSU) has rejected the idea of a sugar tax, a measure supported by Federal Health Minister Nina Warken (CDU). Speaking to the “Frankfurter Allgemeine Zeitung”, Rainer stated he is “not a fan of the sugar tax” believing it will neither achieve the expected health effects nor yield measurable savings in the healthcare sector. He noted that the predicted revenue of around 100 million Euros pales in comparison to the massive financial needs of the health system. Instead of implementing new levies, Rainer advocates for voluntary agreements with the industry aimed at reducing sugar, fats, and salt, a strategy he believes should be sustained.
Turning his attention to EU policy, Rainer expressed his opposition to reshaping the Common Agricultural Policy (CAP) funding after 2027. He argued that merging the CAP into a single, large funding pot with other political areas would undervalue the importance of agriculture. He stressed that comprehensive financing is essential, demanding that food and supply security be accorded the same status as defense. Furthermore, he warned against “cannibalizing” state budgets if EU funds for agriculture were bundled with social or migration policies, reiterating that agriculture is a key part of critical infrastructure.
Regarding food prices, Rainer advised that the state should not interfere with market pricing, as prices are determined by the balance of supply and demand. While he acknowledged that price deviations, such as those linked to the Iranian crisis, are being closely monitored, he asserted that affordable food depends on economically robust producers. He insisted that food items must accurately reflect their real value, pointing out that 99 cents for half a pound of butter was insufficient. Paradoxically, he rejected a state-mandated levy tax on meat, despite noting that prices have already risen by more than 30 percent in recent years.
Finally, Rainer announced several support measures for farmers. The first step mentioned was a temporary reduction of the energy tax on diesel and gasoline by 17 cents. On the EU level, the German government intends to package efforts to combat excessively high fertilizer costs, including customs tariff reductions for imported fertilizer, to bolster European production capacity. Additionally, Rainer announced a “bureaucratic streamlining package specifically for agriculture” set to be implemented this year. Looking further ahead, he aims to strengthen the position of farmers within the supply chain and cooperate at the EU level to ensure fair competitive conditions, particularly during the revision of the Unfair Trade Practices Directive.