The Guardian

The European Union has voted through rules to limit the ability of banks and hedge funds to bet on food prices.

Arlene McCarthy, a Labour MEP for the north-west, said the new rules, known as Mifid, would “curb speculation and help decrease price volatility and inflation” which had a “devastating impact on poor and food dependent countries”.

“For the first time the EU will regulate commodities to tackle food speculation,” she said.

McCarthy said the rules would establish “an effective system of limits on the positions taken by financial players to curb speculation and help decrease price volatility and inflation of staple foods and other commodities”.

Get Our E-Newsletter - breaking news to your in-box twice a week
Will be used in accordance with our Privacy Policy
Share.

About The Author