17-19 March Agriculture Council

Date: 27/03/1997

AT A meeting lasting two days, most ministers attacked the Commission's proposals to save 1.4 billion ecu by making sweeping cuts in arable aid payments. Only the UK and Sweden expressed any enthusiasm for the idea, but were still unhappy with individual aspects of the proposal itself. As usual, they called for across-the-board cuts in institutional prices. But Germany's Jochen Borchert said: “Any cut would destroy the trust of our farmers. I reject this proposal completely.” French Minister Philippe Vasseur stressed that “the reduction undermines the balance of the 1992 reforms and is incomprehensible”. Others said the cereals sector should not suffer to bale out beef farmers. The only country to come forward with an alternative to arable aid cuts was Austria, although there was little immediate reaction to its idea of setting a ceiling on the amount of aid each farmer could receive.

AFTER protracted negotiations, ministers agreed an EU-wide cattle identification and beef labelling system which will make labels compulsory for all beef sold in EU shops from the year 2000. As a concession to the UK and Italy, member states will have the option of applying the rules on a voluntary basis for domestically produced beef sold on the home market. The decision was taken unanimously, thus thwarting the Commission's attempts to give MEPs equal decision-making powers on the issue. After the meeting, Agriculture Commissioner Franz Fischler said he “seriously regretted that Council chose to exclude Parliament from the decision”.

THE Commission's agrimoney proposal was adopted with certain amendments. The main change was to increase the amount by which a frozen green rate can differ from the actual green rate from 7&percent; to 11.5&percent;, a figure which will probably mean that the system will never be triggered. Other changes include the flexibility to allow countries revaluing appreciably twice within six months to grant compensation within three months (rather than six). The rule aimed at disqualifying producers eligible for less than 150 ecu from receiving compensation was amended so that payments will only be refused if the degree of appreciable revaluation is below 0.5&percent;.

THE Farm Commissioner told ministers that transatlantic negotiations to establish veterinary equivalency were in difficulty and that the list of EU-approved poultry production factories in the US had been cut by 30 because of unsatisfactory hygiene. Fischler said he would suggest the US should agree to raise its standards to EU levels within six months.

AGREEMENT was reached by qualified majority on proposals for the geographical denominations of origin for regional foods. Italy and Greece voted against the amended rules, which delay the start of the five-year transitional period to the date the food products are registered, from the original date of July 1992.

MINISTERS approved the 30,000 tonnes reduced tariff quota for malting barley for the US (with Italy, Spain and Portugal opposed), on condition that the Americans withdraw their threatened World Trade Organisation panel on the EU's cereals regime.

COUNCIL will return to proposals to make the arable crop penalty system more flexible in April, once the Commission has held talks with Spain. Madrid is concerned that the lack of agreement means that provisions exempting its drought-hit farmers from penalties cannot enter into force. Germany, France and Italy want penalties to be targeted only at those regions which exceed limits, but this is not acceptable to the Commission.

MINISTERS met their counterparts from central and eastern Europe (CEECs) for 'structured dialogue' talks. The main topic of debate was the adaptation of veterinary and plant health legislation before these countries can join the Union. Some ministers called for pre-accessionary funds to be made available to finance the infrastructure needed to implement new legislation, while others asked that their senior officials be granted observer status at various EU meetings such as the Standing Veterinary Committee.