Madrid is seeking allies in its battle to reject Commission plans

Date: 03/04/1997

to reform the system for paying EU aid to olive oil producers, claiming they threaten tens of thousands of jobs. Spanish Agriculture Minister Loyola de Palacio insisted this week: “We must maintain the unity between the five producing countries to block the reform ... and we must also convince other EU colleagues.” Spain's uncompromising opposition has underlined the challenge Agriculture Commissioner Franz Fischler faces in implementing reforms to tackle a burgeoning olive oil surplus. He insists these are necessary to stamp out fraud, distribute the aid more evenly and cut back on subsidised exports. The Union spent 1.8 billion ecu last year subsidising two million olive oil farmers in Spain, Italy, Greece, Portugal and France.