Farmers’ plea for fair shares goes unheeded

Date: 18/04/02

By David Cronin

CALLS by farmers from aspiring EU countries to benefit from the same entitlements as their counterparts in existing member states are rejected by a new European Parliament report.

Drafted by Swedish Liberal Karl Erik Olsson, the agriculture committee report backs recent European Commission proposals to phase in farm subsidies to new entrants. The proposal has been resisted by many candidate countries, who want the same treatment as farmers in the current EU 15.

Although Olsson says 'in the longer term, there must be a single Common Agricultural Policy for all member states,' he argues that granting full payments to farmers in new member states would not narrow the income gap between those with large and small holdings or counter related problems such as the dearth of capital and skilled labour in many rural areas.

'Immediate application of EU support and price levels could result in reduced consumption and widen social divisons,' his paper states. 'A great influx of cash could result in existing structures being maintained and discourage investment in production or alternative activities.'

Under the Commission's package, states joining the Union in 2004 would receive 25 of the full level of farm subsidies that year. This would rise by 10 within two years and hit the 100 target in 2013.

Olsson also remarks that applicant states' economies may find it difficult to compete with Western neighbours as their 'agricultural sector, and in particular the foodstuffs industry, is in worse shape'. In 2000, agriculture accounted for 4.6 of gross domestic product in the 10 central and eastern European countries bidding for EU membership. The corresponding figure for member states was 2.

Calls by farmers from aspiring EU countries to benefit from the same entitlements as their counterparts in existing Member States are rejected by a new European Parliament report.