Fiscal Consequences of the Abolition of Sugar Levies

Abstract

From October 2017 the European Union envisages the abolition of the socalled sugar quotas and minimum prices for buying sugar beet. As a consequence of these changes the sugar levies paid by the sugar factories of the Member States will cease to apply. The article identifies the fiscal effects of the abolition of these levies. The European Union and the Member States will lose some of their budget revenues. The structure of Member States' burdens for GNI payments will also change as well as their operating balance relative to the EU budget. Through the change Poland will gain, whereas some large net contributors will lose, i.e. the Netherlands, Sweden and the United Kingdom.

Sugar Market in Poland in the Context of the Support of Agricultural Policy. Current Situation, Trends and Projections

“…As a result, Bulgaria, Ireland, Latvia, Portugal, and Slovenia ceased sugar production in the first years, while Greece, Spain, Italy and Slovakia significantly reduced their production. The negative consequences of the reform were also felt by Poland, where by the end of the 2009/2010 marketing year, 38 out of 56 sugar factories were closed [Cieślukowski and Mutascu 2018]. In the entire EU, the number of sugar beet growers has significantly decreased.…”