EU extends glyphosate approval for another ten years: financial expert analyzes effects

EU extends glyphosate approval for another ten years: financial expert analyzes effects

According to a report by www.finanzen.net,

The weed killer glyphosate has been approved for another ten years in the EU, despite controversy and concerns about the risks to people, animals and the environment. The EU Commission's decision was met with mixed reactions as EU member states did not have a sufficient majority to prevent the extension.

The glyphosate manufacturer Bayer welcomed the decision, while environmental associations and green groups are critical of the drug.

The EU Commission emphasized that there will be restrictions on how glyphosate can be used in order to keep the risks as low as possible. However, glyphosate may continue to be restricted at national and regional levels, which could lead to legal uncertainties.

The decision also has an impact on the market. The analysis firm Jefferies has downgraded the price target for Bayer and cut the operating earnings estimate for 2024 by around 13 percent. Bayer shares ultimately traded 1.19 percent lower at 40.60 euros in XETRA trading.

In Germany, the continued use of glyphosate is envisaged in the coalition agreement until the end of 2023, but the ten-year extension in the EU raises doubts as to whether this promise can be kept.

Controversy and uncertainty remain regarding glyphosate's potential health risks and environmental impacts.

The EU Commission's decision to extend the approval of glyphosate has not only political but also financial implications for companies like Bayer and raises a number of questions and concerns.