NEW LIMITS on speculating on food prices have been agreed by the
On Tuesday of last week, MEPs voted to enable authorities to
limit the size of the financial risk that a firm can have in
relation to certain commodities. The statement from the Parliament
cited the desire to "support orderly pricing and prevent
market-distorting positions and market abuse".
The head of Oxfam's EU office, Natalia Alonso, welcomed the move
to "stop the scandal of banks and other speculators making a profit
by betting on food prices. . . Food is a right, not something
bankers can recklessly gamble on."
The director of the World Development Movement, Nick Dearden,
said: "Public anger over banks' speculating on food has been
enormous, and the European Parliament has recognised this concern
by backing the new controls."
On Wednesday, the editor of the magazine Energy Risk,
Mike Pengelley, observed that there was a "very vigorous academic
debate over whether or not speculation causes price volatilty. . .
There is a lot of academic evidence that points in both
On Tuesday, a Christian Aid spokeswoman said that the charity
would "like to see a full impact assessment before any further
significant regulatory changes".