Fischler’s crop of reforms set to harvest war of words

Date: 11/07/02

By David Cronin

PLANS for the most radical overhaul of EU agricultural policy in its 45-year history face stiff opposition from several member states who fear their farmers will suffer acute losses in income.

Unveiling the proposals yesterday (10 July) Farm Commissioner Franz Fischler said the Union's 40 billion euro-per-year farm support regime needed 'a complete facelift, not cosmetic changes'.

His reforms won the backing of his colleagues - although insiders say the institution's Vice-President Loyola de Palacio (Spain) and regional chief Michel Barnier (France) have strong reservations.

The proposals are designed to end the link between subsidies and the amount of food farmers produce. Flat payments based on compliance with food safety, animal welfare and environmental standards would be introduced instead.

'While guaranteeing farmers a stable income, the new system will free them from the straitjacket of having to gear their production towards subsidies,' Fischler said. 'They will be able to produce the crop or the type of meat where they see the best market opportunities - not the highest subsidies.'

France, the main beneficiary of the Common Agricultural Policy (CAP), is expected to lead a strong attack on the proposals when they are discussed by farm ministers on Monday. Italy, Spain, Portugal and Ireland are likely to join the war of words.

The biggest French farmers' association predicted the fall in subsidies would drive 200,000 out of agriculture within a decade. 'Almost half of French farmers would have to shut up shop,' said Jean-Michel Lemetayer, head of FNSEA (Fédération Nationale des Syndicats d'Exploitants Agricoles).

The Committee for Agricultural Organisations in the European Union (COPA) accused Fischler of undermining an accord, reached by EU leaders at the 1999 Berlin summit, setting farm spending until 2006. According to COPA, this agreement only gave the Commission a mandate to suggest 'mid-term' reforms if required by market or budgetary conditions.

'This is clearly not the case,' said the organisation's chief Gerd Sonnleitner. 'Agriculture has been well under budget since 2000 and the Commission's own market assessment is extremely favourable.'

Portugal's Agriculture Minister Armando Sevinate Pinto felt the proposals had some 'very negative' aspects.

His Irish counterpart Joe Walsh described the Fischler plan as worrying, adding his 'absolute priority' was to protect previous gains Dublin had secured for its farmers.

But Germany, the EU's paymaster and leading advocate of CAP reform, welcomed the broad thrust of the package. The UK's Agriculture Minister Margaret Beckett said the plans 'go along the right lines' but 'do nothing to control the burgeoning growth in the [farm subsidy] budget'.

Some of the key measures envisaged are:

• A ceiling of €300,000 on the amount of subsidies a single farm may receive.
• The introduction of flat-rate payments, based on the sum farmers have received from the EU over the previous three years.
• A progressive reduction of 3% per year over seven years in payments to farmers who get more than €5,000 in annual subsidies.
• Savings in direct payments to be redirected towards rural development or environmental protection schemes.
• Farmers are to have their payments cut if they breach EU standards on the environment, animal welfare or food safety.

Fischler hopes that decisions needed to implement the reforms will be taken next spring, following extensive discussions.

Plans for the most radical overhaul of EU agricultural policy in its 45-year history face stiff opposition from several Member States who fear their farmers will suffer acute losses in income. The proposals, which are designed to end the link between subsidies and the amount of food farmers produce, were unveiled by Agriculture Commissioner Franz Fischler on 10 July 2002.

http://ec.europa.eu/comm/agriculture/mtr/index_en.htm http://ec.europa.eu/comm/agriculture/capreform/index_en.htm

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