Commission set to approve bird flu compensation

By Emily Smith

Date: 02/03/06

The European Commission is set to allow France and Italy to give state aid to their poultry farmers after the spread of avian influenza to the EU.

Sales of poultry products in the EU have been hit by fears about bird flu, even though the World Health Organisation (WHO) issued a statement on Monday (27 February) stressing that humans were at no risk of catching the deadly H5N1 strain from eating cooked poultry meat or eggs.

A Commission spokesman said Italy had said it wanted to offer poultry farmers compensation at a level requiring EU approval and been given "a provisional green light - we are still waiting for some final details".

He added that France had "in rather broad terms" indicated it would like to do the same soon. A formal application is expected to reach the Commission next week.

Italians have proved the most nervous consumers in Europe, with poultry sales down 70% even before dead birds were found within EU borders.

Under EU law, governments are allowed to offer their struggling poultry farmers compensation of up to EUR 3,000 over three years without telling the European Commission.

The spokesman said, however, the Commission was willing to authorise "far more...providing it is in line with state aid rules".

"After coming under pressure to provide money we don’t have, we are encouraging national measures, telling governments we will work expeditiously and with a fair mind to approve national plans," he said.

European Commission laboratories in the UK have now confirmed cases of bird flu in eight EU countries: Greece, Italy, Austria, Hungary, Germany, Slovenia, France and Slovakia.

Dead birds found on the south coast of Sweden this week were being tested for H5N1 at the reference laboratory in Weybridge, England, at the time of going to press.

Article reports that the European Commission was set to allow France and Italy to give state aid to their poultry farmers after the spread of avian influenza to the EU.