Dovgal Olena, Doctor of Economics, Associate Professor of the Department of Economic Theory and Social Sciences, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID ID: 0000-0003-3353-4749
e-mail: dovgal@mnau.edu.ua

The Role of State Policy in the Formation of Food Security in the Countries of the European Union

Abstract. Introduction. The correlation between inflation and unemployment is a very relevant topic for both Ukraine and other countries. The connection between them is so strong that they are like a natural disaster with severe socio-economic consequences directly for the population of the countries on whose territory these processes are taking place. The level of food supply in modern conditions is one of the priority areas of state policy in the vast majority of countries in the world. The categorical apparatus of the sphere of food supply was formed in the 70s of the 20th century, when the problem of hunger acquired special importance for most countries of the world. The main priorities in this field at that time were quantitative satisfaction with food products and their financial availability for each person. And although almost half a century has passed since that time, this question has not only not lost its relevance today, but has also become one of the most important and priority ones.

Purpose. The aim of this study is to thoroughly analyse the current trends of inflation in the countries of the European Union and the impact of these factors on the level of unemployment and the sustainable development of agrofood production as a component of food security in the region.

Results. The results of empirical and regression analysis have shown that there is a direct causal relationship between inflation and unemployment, with inflation being the cause and unemployment being the effect. This made it possible to assert that the maintenance of macroeconomic stability in the EU countries should, first of all, consist in ensuring stable prices and a stable exchange rate. Maintaining the stability of the country’s economic condition will prevent violations of the system of sustainable development of enterprises and contribute to the strengthening of food security trends.

Conclusions. Inflation and unemployment threaten the economy of any country. However, as a rule, the most vulnerable strata of the population suffer, which affects food security. The relationship between inflation and unemployment exists and is legally regulated by the state administration. As practice shows, modern analytical software tools are used in various states, which are based on macro-, regional, and micro-level statistical data for modelling socio-economic situations, which helps to make the most realistic forecasts of the economic situation. In the future, it will be expedient for the EU government to set the following key tasks: first, use the entire arsenal of measures aimed at further suppressing inflationary factors; secondly, optimization of the nature and structure of public expenditures, while not abandoning the state’s duties to protect socially vulnerable segments of the population, which is necessary for successful state regulation of food security processes; to establish the mechanisms and algorithm for achieving national food security, which will include scientific support, the formation of a regulatory and legal framework, increasing production volumes and increasing food security.

Keywords: food security, inflation, unemployment, EU food policy, governmental support, food.

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