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EU ministers agree on farm subsidies reform
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21:58, November 20, 2008

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European Union (EU) agriculture ministers managed to reach an agreement Thursday on an overhaul of the 27-nation bloc's controversial farm subsidies, following marathon talks.

"Everyone had to deliver sacrifices ... But every member state can go back and say they achieved something in the negotiations," EU Agriculture Commissioner Mariann Fischer Boel told a news conference early Thursday.

"I am very happy we made it without changing the basic instruments of the original proposal," she added.

In May, the European Commission had proposed a "health check" of the EU's Common Agricultural Policy. One of the main issues was to further break the link between farm subsidies and production and thus allow farmers to follow market signals to the greatest possible extent.

While 90 percent of EU farm subsidies, which cost more than 40 billion euros (50 billion U.S. dollars) a year, are currently decoupled from production, the commission wanted to remove the remaining coupled payments as well, with only a few exceptions.

Meanwhile, aid to farmers would be associated with respect for environmental, animal welfare and food quality standards. Farmers who do not abide by the rules would face cuts in their support.

Among other measures, the agriculture ministers also needed to agree on a gradual increase in milk quotas before they are entirely abolished in 2015.

As they entered closed-door talks Wednesday, almost 10,000 tobacco and farm workers held protests in Brussels against possible cuts in the subsidies they could receive.

The European Parliament on Wednesday called for a smaller cut in farm aid and a limited increase in milk quotas as well as special aid for milk producers and livestock farmers.

Source: Xinhua



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