28 September Agriculture Council

Date: 01/10/1998

EU AGRICULTURE ministers discussed the Russian economic crisis, with all agreeing that the Union should urgently explore ways of restoring stability to Russian markets. The ministers called on Farm Commissioner Franz Fischler to take steps to relieve the pressure on the Union's agricultural markets, which are heavily oversupplied after the loss of Russian export outlets. Germany, France, Ireland, the Netherlands, Belgium, Portugal and Spain called for higher pigmeat export refunds.

MINISTERS gave their qualified approval to increasing food aid to Russia. They warned, however, that such aid should not further damage export markets and stressed the need for prior approval from the WTO. Others said Moscow should formally request the aid and supply proof that it was needed before any new shipments were dispatched.

DURING an initial discussion on Fischler's proposed wine sector reforms, the anticipated split between producer and non-producer countries emerged, with the latter raising objections to the additional 250 million ecu per year which the changes would cost. However, there was broad agreement on the direction of the reforms, which aim to curb overproduction while increasing output of quality wine.

FURTHER divisions emerged during a discussion on Commission proposals to improve welfare standards for laying hens. Belgium, France, Spain, Italy and Portugal all voiced reservations about the plan to establish minimum cage sizes, saying this would make EU-produced eggs uncompetitive with those from eastern Europe.