Press Release: Commission proposes reform of cotton regime

Commission proposes reform of cotton regime. The European Commission has adopted a proposal to reform the existing cotton regime. The objective of the proposal is to have a new framework in place, which takes account of environmental concerns and which keeps budgetary expenditure under control. While maintaining the present guide price level of 1,063 euro per tonne as well as the level of guaranteed national quantities, the reform foresees an increased penalty rate. If the national quantities are exceeded by 1% , the aid will be reduced by 0.6% of the guide price (instead of 0.5% in the past). If adopted by the Council, the new regulation will enter into force by 1 September 2000.

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