EU row on the cards over farm aid reform


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- 08 October 1998 https://www.fwi.co.uk More in News EU row on the cards over farm aid reform - 08 October 1998 >More in News

08 October 1998EU row on the cards over farm aid reform


A ROW is brewing between European Union members over plans to “re-nationalise” the £30 billion-a-year Common Agricultural Policy (CAP).


The plans would involve member countries taking over responsibility from the European Commission for financing 25% of all direct aid payments to their farmers.


The aim would be to cut the percentage of the Brussels budget that goes on agriculture – now standing at 50% – and ease the burden on taxpayers in countries such as Britain and Germany which


currently “cross-subsidise” farm-dependent nations such as Spain, France and Ireland.


The plan would mean a substantial cut in Britains overall contribution to the EU budget, but it would be obliged to top up payments to British farmers from national funds to levels set by


Brussels.


France and Ireland have already threatened to block the move. They say a reduction in their budget contribution towards aid payments would be far outweighed by the extra money they would


have to pay farmers.


Britain would gain £280m from the new arrangement, while Germany would be £500m better off. But France would lose £450m, Spain £380m and Ireland £140m.


The commissions idea is contained in the biggest ever review of EU spending policies by Brussels.


British officials have already cautioned that the proposals could mean distortions in the single market, whereby farmers from one country would be more heavily subsidised than those from


another.

EU initiative could cut farm subsidies, FWi, 07 October, 1998 (yesterday)The Times 08/10/98 page 16The Independent 08/10/98 page 13Financial Times 08/10/98 page 1, page 2, page


21 (Editorial)The Guardian 08/10/98 page 17The Daily Telegraph 08/10/98 page 22The Herald 08/10/98 page 15


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