State of the Union: Low interest rates and food challenges

The most recent inflationary crisis began in 2022, following Russia's full-scale invasion of Ukraine, with the EU's harmonized consumer price index peaking at 10.6% in October 2022.

In response, the European Central Bank (ECB) began raising interest rates, putting households and businesses under pressure due to the high value of their bank payments.

Two years later, inflation in the euro zone has fallen to 2.6% - close to the 2% considered the ideal rate -, which is why the ECB made an announcement that should bring relief.

The reduction in interest rates by 25 basis points was explained by its president, Christine Lagarde, as a prudent decision given the risks that still exist.

"We are determined to ensure that inflation returns to our 2% medium-term target in a timely manner. We will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim," she told a press conference.

“Warrior farmers” is what participants in a demonstration this week in Brussels called themselves. They are dissatisfied with the recent changes introduced to the Common Agricultural Policy (CAP) to respond to the wave of protests that has lasted for half a year.

The protest was called by agricultural organisations close to the far right, and included speakers belonging to these parties from Poland, Belgium and the Netherlands, for example. Copa-Cogeca, the main federation of European farmers, did not participate.

However, the organisers rejected this association, with Sieta van Keimpema of the Farmers Defence Force saying "this is a lie we have heard repeatedly. There is no politics in this protest and there is nothing extreme except people lying".

It is essential to produce quality food at a fair price, but also to avoid food