Brussels, 28/10/2009 (Agence Europe) - On Wednesday 28 October, the European Commission decided to allow member states to provide farmers with a one-off payment of up to €15,000 in state aid. The move is part of the efforts promised by the Commission to stabilise incomes for dairy farmers, but is, of course, open to farmers in all sectors. The decision amends the Temporary Crisis Framework, adopted by the Commission in January 2009, which already provides for various aid possibilities to facilitate access to finance for EU undertakings.
With today's Commission decision a separate compatible limited amount of aid of € 15,000 for farmers (compared with €7,500 currently) is included into the Framework. This amount can be granted once per undertaking until the end of 2010. Any de-minimis aid already received since the beginning of 2008 has to be deducted from this amount. Aid schemes put in place under this new instrument will have to be open to all primary producers and will have to complement other general crisis measures already put in place by a member state. The idea of allowing farmers state aid of up to €15,000 formed part of the Commission's Communication on the milk sector of 22 July 2009.
“Allowing national authorities to pay farmers up to €15,000 in aid should help overcome the serious cash flow problems which some farmers are experiencing,” said Agriculture and Rural Development Commissioner Mariann Fischer Boel.
France wants discussion of dairy crisis at European Council of 30 October
At the request of France and Germany, the European Commission has set up a high level group to prepare measures to improve the organisation of the dairy sector. “With one meeting per month scheduled, the Commission conclusions will be ready in June of next year. Let me make myself clear, this is not acceptable. The Commission must speed things up,” French President Nicolas Sarkozy said on Tuesday 27 October. He called on the European Commission to propose “operational solutions” within a timescale “that best suits reality on the ground”. “Making proposals when everyone is dead is not a solution, it's an invitation to the funeral,” Sarkozy said. The French President intends to ask at the European Council on 30 October that the Commission propose ways “to effectively strengthen dairy market regulation instruments” for the start of next year. On Wednesday evening 28 October, Sarkozy had discussions with German Chancellor Angela Merkel, “so that Germany and France continue to pull in the same direction”.
“We cannot allow a handful of speculators to endanger European food security by seriously disrupting the way the markets work,” added the French President. For that reason, “Europe has to put in place real regulation” in the area of agricultural raw materials markets. France has called on the Commission to take the initiative in this, in order to restrict growing speculation and financial derivatives on these markets. “Let me make it clear, France will be intransigent on this,” he said. (L.C./transl.rt)