Press Release: The Commission calls for action on commodities and raw materials

Excessive volatility of prices on all major commodity markets occurs at a time when the competitiveness of European industry crucially depends on efficient and secure access to raw materials. Raw materials are vital for the EU’s economy and particularly crucial for the development of modern environmentally friendly technologies such as electric cars and photovoltaics. The recent volatility in commodity prices threatens to increase inflation and global raw material markets are becoming increasingly distorted due to protectionist measures. The price fluctuation on the agricultural commodity markets has an impact on farmers, food-makers and consumers, including in the poorest countries.

In response to these challenges, the European Commission presented on 2 February 2011 an integrated strategic vision to tackle challenges in Commodity markets and on raw materials. The Commission proposed actions to improve the regulation, functioning and transparency of financial and commodity markets. The European Commission also called for the swift implementation of the Raw Materials Initiative adopted in 2008. The Communication on commodities and raw materials contributes to the Europe 2020 flagship initiative 'A resource-efficient Europe' that was adopted in January 2011.

• Primary Source

European Commission: Memo/11/62: Communication on Commodity Markets and Raw Materials: Q&As http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/62&format=HTML&aged=0&language=EN&guiLanguage=en

ESO: Background information: Raw materials: EU to call for commodity derivatives curbs http://www.europeansources.info/record/raw-materials-eu-to-call-for-commodity-derivatives-curbs/

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