Greek proposal aims to end French objections over reform of CAP

Date: 12/06/03

By David Cronin

EU FARM ministers were presented with a compromise proposal yesterday (11 June), aimed at lifting French objections to reform of the €43 billion-a-year Common Agricultural Policy (CAP).

The paper from Greece's EU presidency makes some concessions to Paris, the main opponent of 'decoupling'. This idea of breaking the link between farm subsidies and the level of farm production is a central plank in the blueprint published by Franz Fischler, the agriculture commissioner, for the most radical overhaul of the CAP in its history.

Insiders say the Greek paper recommends that 'coupling' would continue in less favoured agricultural areas, such as mountains, in particular on premiums paid for sheep and goats.

An official attending yesterday's Agriculture Council meeting in Luxembourg said: "The French have not yet fully shown their cards but they have indicated they are ready to move [from their opposition to decoupling]."

Spain and Ireland have also voiced serious reservations about the Fischler plan but Dublin and, to a lesser extent Madrid, have signalled a willingness to be more flexible too. Talks on the Greek compromise plan are due to continue in the Grand Duchy today.

Earlier in the week Fischler stoutly defended his decoupling initiative. "What we want is a long-term, modern and sustainable aid policy, in the interests of farmers, consumers and taxpayers alike, to ensure that we must decouple farm aid from production," he said.

The European Commission argues that the change is necessary to encourage farmers to focus on the quality of goods they produce, rather than simply the quantity.

The Greek paper goes further than the Commission's on 'modulation' - which involves diverting subsidies to rural development and environmental protection schemes.

Whereas the Commission had suggested that modulation start in 2007, Athens now advocates it should commence next year.

The Greek Presidency has devised a compromise proposal aimed at lifting French objections to reforms of the Common Agricultural Policy.