Speculation on commodities - a financial practice that can lead to the prices of basic products (such as agricultural) soaring - is restricted by introducing a harmonised EU system setting limits on the positions held in commodity derivatives.

Is concerned about the effects that the shift in many Member States towards a more extensive taxation of consumption could have on social inequalities; calls on the Member States to be attentive to this potential problem and to study carefully the negative implications of eroding the progressivity of the tax system as a whole; believes that there should be a certain degree of flexibility in the VAT system, where — in duly justified cases as foreseen by the Directive on Common system of value added tax, relating to for example culture or basic needs — some product categories could be taxed at rates below the standard rate;

provide food assistance in a way that does not adversely affect local production, market conditions, marketing structures and commercial trade or the price of essential goods for vulnerable populations.

‘Crisis’ means any situation in a Member State or third country in which a harmful event has occurred which clearly exceeds the dimensions of harmful events in everyday life and which substantially endangers or restricts the life and health of people, or has a substantial impact on property values, or requires measures in order to supply the population with necessities; a crisis shall also be deemed to have arisen if the occurrence of such a harmful event is deemed to be impending; armed conflicts and wars shall be regarded as crise ...[+++]s for the purposes of this Directive.

However, as stated in recitals (56) and (57) of the abovementioned Council Regulation, the Council considered that Acron should exceptionally be allowed to complete its undertaking offer within 10 calendar days from entry into force of that Regulation due to the complexity of several issues, namely (1) the volatility of the price of the product concerned which would require some form of indexation of minimum prices, while at the same time the volatility is not sufficiently explained by the key cost driver; and (2) the particular market situatio ...[+++]n for the product concerned.

Faced with this difficult situation, the government adopted ambitious plans, including cutting expenditure on a range of budget items, liberalising the prices of some key staples, better targeting of social benefits, accelerating restructuring and privatisation, and freezing the minimum wage.