They have been blocking traffic for weeks and have been left parked on the country’s roads. Farmers need financial assistance to deal with rising energy prices, which are threatening their livelihoods.
“Take fertilizer: Last fiscal year, we paid 500 euros ($570/ton) for it. It’s almost as if we are buying a piece land. It costs 1,700 to 1,800 Euros,” Dimitris Kakalis (a 25-year old farmer from central Greece) said.
He says that the rise in energy prices and its ripple effect have a profound impact on his vineyard and peach-grove business. It costs more to buy gasoline for machinery, electricity for irrigation pumps, and weed killer.
He said, “At these prices, we’re heading for ruin.”
The impact of high energy costs, which are driving decades long inflation numbers, is being felt all over Europe and the globe, putting financial stress on households, governments, and businesses. Countries are struggling to pay high utility bills, rising food prices, and the costs of distributing their costs to consumers. Many are now facing a crisis in cost-of-living.
Turkey’s police have been instructed to inspect grocery stores in order to enforce a new food sales tax. President Recep Tayyip Turkey promised “severe punishment” to those who violate the measure. Some in agriculture are having to pay more. Egg producers in France have recently attacked the headquarters of a major supermarket chain in an attempt to increase retail prices.
In Greece, the inflation rate is at its highest level in 25 years. Prices for basic food items have increased by double digits. Vegetables are up over 14% compared to a year ago, while olive oil has increased by more than 15%, and some types of meat are higher than 17%.
Shoppers at a local grocery store in Athens’ central Petralona said that they now have a 20-euro note instead of the 10, last year.
Antonia Kalantzi (38-year-old personal coach) said, “You need to cut some things” to be able manage your monthly grocery shopping at the farmer’s market and the grocery store. “Things have become more difficult than what I remember two years ago.” The prices have risen a lot.”
Farmers feel the same painas they attempt to stay afloat. They are urging the government to increase their assistance on electricity bills and reduce fuel taxes.
Kakalis splits his time between his farm outside Tyrnavos and a nearby protest outside Tyrnavos. Tyrnavos is a town located 380 km (235 miles) north-east of Athens. Protesters aren’t sure when or if they will block traffic in Greece.
Kakalis is seated in a circle, with others, and warms his hands on scrap wood. The discussion settles on the long-term consequences of rising energy prices.
“Unfortunately, we can’t exclude the possibility that food and energy costs will rise forever, which means that it is not only a shock this year but also in the future,” stated Zsolt Darvas, economist and senior fellow at the Brussels-based thinktank Bruegel.
As many European Union countries, Greece has taken temporary measures to assist households with their electricity bills, including tax cuts, subsidies and tax cuts. However, the prospects of longer-term assistance are uncertain. After allowing emergency spending during COVID-19, the EU promised to reinstate strict budget rules for government next year.
Darvas believes that prices will eventually settle this year. However, the pain for lower-income households will likely last longer.
“The 20% poorest in the world spend much more money on food and energy than they do on housing. The economist stated that they spend almost two-thirds on household bills and food.
“The richest 20% spend only about one-third of this amount. Darvas stated that it was clear that the massive price rises in energy and food throughout the European Union are mostly affecting the poorer population.
According to charities, the impact of the pandemic on the economy and the cost-of living crisis is clear. Some people are becoming more desperate as the economy expands.
Apostoli director Constantine Dimtsas said that the gap between the have-nots in society is growing, and that what he is seeing is alarming. Apostoli is the largest charity in the country and is affiliated to the Greek Orthodox Church.
According to him, the charity now distributes 7,000 food boxes per month to Athens’ most vulnerable families, as opposed with just 2,500 in 2019. Around 20,000 meals are now being distributed each day.
Dimtsas stated, “It’s good that the unemployment is falling and that there is growth.” “But, we see a segment of society that does not always appear in official statistics. It is on the rise, and we are very concerned about it.”
