The Czech government has announced a major fiscal reform that will see large food and drink producers such as Agrofert, Madeta and Hamé no longer receiving state agricultural subsidies. The move is expected to save the government CZK 10.2 billion.
Minister of Agriculture Zdeněk Nekula said that no money would be paid out in subsidies from next year. This is part of the government’s efforts to reduce public spending and improve the country’s fiscal position.
The reform has been met with criticism from some in the agricultural sector, who argue that the subsidies are necessary to ensure the sector’s long-term viability. However, the government has argued that the subsidies are not necessary and that the sector can survive without them.