The biggest French farming businesses receive the vast majority of European Union (EU)'s agricultural subsidies, according to a report issued by international charity organization Oxfam on Monday.

The charity's analysis of EU Commission statistics found that the top 15 percent of French farm businesses received 60 percent of the country's direct EU farm payments.

"This gives a lie to the French argument that it uses EU subsidies to support its small farmers," said Ms. Celine Charveriat, the charity's trade campaigner.

France is the biggest net receiver of EU' nearly 50 billion euros (about 60 billion US dollars) annual agricultural funding, scooping more than 20 percent of the CAP budget for itself.

The report also found the British royal family and sugar company Tate and Lyle were among the biggest CAP (Common Agriculture Policy) beneficiaries in the UK.

It said in Spain, the seven top farms received subsidies equal to the total amount given to the 12,700 smallest Spanish farmers.

The CAP subsidies are "a gravy train for Europe's biggest, richest farmers," said Ms. Charveriat, adding that the EU farm policy needed to be changed so that it supports "small farming and environmentally-friendly production".

She said: "The losers from a continued (WTO talks) stalemate will be Europe's small farmers, who need more targeted support, and millions of poor farmers in developing countries who need an end to rich country dumping."

The EU has been under great pressure by its trade partners to slash farm subsidies further, with the US, Australia and New Zealand saying the EU's latest and purportedly "final" offer is far from enough. But France is sticking to its guns on CAP so far, with French president Jacques Chirac threatening a veto if Brussels offers further subsidy cuts to WTO partners.

Source: Xinhua