Bid to raid farm budget for Balkans sparks row

Date: 17/02/2000

By Simon Taylor

BUDGET Commissioner Michaele Schreyer is locked in a fierce battle with agriculture chief Franz Fischler over her calls for cuts in EU farm spending next year to provide money for the Balkans.

Schreyer has proposed reducing next year's planned €43-billion budget for the Common Agricultural Policy (CAP) to meet some of the €300-million cost of funding reconstruction projects in the region.

But her bid to raid the CAP's coffers has sparked furious protests from the Agriculture Commissioner, who is insisting that farm spending is already too tight given the range of competing demands on his budget.

"Fischler remains opposed to any further cuts in agriculture spending," said a Commission spokesman.

The row has also highlighted a growing feeling within the Commission that the EU must be seen to be meeting its obligations in the international field instead of always giving priority to internal programmes such as its farm-support policy.

The dispute between the two Commissioners will be discussed by the full College at its weekly meeting next Wednesday (23 February) when it debates Schreyer's budget proposals for 2001.

Officials say the issue is so sensitive that it is unlikely to be settled before then, although Commissioners' chief advisors (chefs de cabinet) will try to break the deadlock at a meeting tomorrow (18 February).

The row has already led to the cancellation of next week's meeting of Union agriculture ministers, which had been due to discuss the proposed farm price package for 2000/01. Those proposals were originally set to be adopted by the full Commission this week, but the arguments over how much money should be made available for next year's agriculture budget forced a delay. The Portuguese presidency then decided that it was not worth going ahead with the Council meeting as ministers would have nothing to discuss.

EU farm spending, which accounts for almost half of the Union's annual €91-billion budget, is coming under increasing pressure in the wake of last year's agreement by EU governments at their Agenda 2000 summit in Berlin to put a €43-billion ceiling on expenditure.

Plans to save €8 million on the price package by scaling back the monthly payment which cereal farmers receive for putting surplus grain into intervention stores have been fiercely opposed by the Union's powerful cereals lobby.

Fischler has also come under attack from member states over his plan to make savings on export subsidies for food products such as biscuits, chocolates and tinned goods.

Agriculture officials point out that the Commissioner is almost certain to face a series of demands for extra money from the farm budget this year as he strives to win political support for key policies.

Diplomats warn that reform of the Union's banana regime is almost certain to require a substantial increase in funding to buy off French and Spanish opposition to the planned changes.

Fischler's attempts to save €48 million on the school milk programme by forcing member states to shoulder half the costs have also run into stiff opposition from farm ministers.

Budget Commissioner Michaele Schreyer is locked in a fierce battle with agriculture chief Franz Fischler over her calls for cuts in EU farm spending next year to provide money for the Balkans.