EU chastises Bulgaria for telling grocers to sell local food during crisis

The European Commission (EC) has chastised a European Union member state which has told supermarkets in the country to prioritise the sale of locally produced food.

By Leonie Barrie

The European Commission (EC) has sent a letter of formal notice to Bulgaria to make the country’s government reverse its guidance to supermarket groups there to prioritise local food products during the coronavirus crisis.

Free eBook

How a connected workforce increases retention and engagement

Recruiting new employees and engaging current ones in a modern, dynamic, and inclusive working environment will go a long way towards their job satisfaction. Traditionally, manufacturing or other factory workers have been at the tail-end of digitalisation and other technical aids to do their jobs efficiently. No more. Companies around the world have woken up to the fact that if they spend a little effort on addressing cultural concerns of their employees, the benefits are a multiple of any investment. This whitepaper provides pathways for firms to give workers more job satisfaction by having them participate at work in myriad ways.

by Redzone

Enter your details here to receive your free eBook.

By clicking the Download Free eBook button, you accept the terms and conditions and acknowledge that your data will be used as described in the Redzone privacy policy By downloading this eBook, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services.

Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The EC said the guidance amounted to “discriminatory measures”.

The letter, a first stage of an infringement procedure against Bulgaria – a European Union member state – is intended to stop what is in effect market protectionism and ensure that a free market for goods from other EU member countries remains open.

The Bulgarian government order, issued on 13 April, was meant to reduce the disruption caused by the Covid-19 pandemic on food producers in the country by requiring retailers to prioritise sale space for domestic food products such as milk, fish, meat, eggs, honey, fruit and vegetables.

The government said grocers should purchase 90% of milk and dairy products from domestic producers.

But in a letter of formal notice seen by just-food, the EC has asked Bulgaria “to remove discriminatory measures obliging retailers to favour domestic food products”.

It said: “Due to the extraordinary circumstances due to the coronavirus sanitary situation and the weakening of EU economies, it is an imperative to preserve the free movement of goods and the freedom of establishment.”

The letter added: “Such obligations restrict the free movement of goods, enshrined in Article 34 of the Treaty on the Functioning of the EU (TFEU), as it creates more advantageous and competitive marketing conditions for domestic food products, discriminating against similar imported products.”

Bulgaria has one month to respond to the letter. If its reply is unsatisfactory, the EC could escalate the matter with a reasoned opinion, the second stage of the infringement process.