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This policy brief, Juan Delgado and Indhira Santos look at how EU policies should be adjusted to the higher food prices. The brief makes three policy recommendations: innovation in biofuels should be encouraged but biofuels targets should be abandoned as they are expensive and distort agricultural and energy markets. Freer trade is needed for both efficiency and food security reasons. But more open markets will further increase the price of food for importing countries. An immediate and sustained aid increase should therefore be agreed.