On July 31 the EU Commission reacted by suspending all existing export tenders of grains, excluding flour and malt. Exporters can still book export licences for all grains with a validity of 60 days with a value "dash" instead of "zero". "Dash" means that the restitution or export tax valid on day of customs-clearance for export will apply, and it is clearly meant as a warning that an export tax can be introduced any day. That way the Commission hopes to strangle export business and preserve grain stocks for domestic markets. At the Berlin EU Summit of 1999 it had been decided to use an export tax only in case of extreme emergencies, and now the Commission may feel that such an emergency has arisen. In European politics only few believe in the regulative strength of markets and rather trust administrative measures. Further policy directives are hardly to be expected before the end of the summer holidays.

26 August, 2003