Argument over EU farm reform continues

04/06/2003

Some signs of political movement on reforming the European Union's disputed Common Agricultural Policy (CAP) emerged at a two day meeting of EU agriculture ministers last week.

Greek agriculture minister, Giorgios Drys, whose country currently holds the EU presidency, expressed optimism over hopes for an accord at the minister’s next meeting to be held in Luxembourg in June.

The EU's executive, the European Commission (EC), wants to cut all links between direct subsidies for farmers and their production levels by 2004. The EC also wants to begin lowering the subsidies in 2007 and wishes to invest the money saved in encouraging rural development and funding future reforms.

The plans have however been opposed for nearly a year by a group of EU countries led by France and Spain, the main beneficiaries of CAP.

French Agriculture Minister, Herve Gaymard, accepted the principle of a “partial delinking” of aid and output, dependent on sectors and regions, which is an idea backed by many countries, according to diplomatic sources.

Gaymard, who has long stood firm against proposals for reform, also proposed the transfer of 4% of direct subsidies towards rural development programmes.