Luxembourg, 17/06/2014 (Agence Europe) - In Luxembourg on Monday 16 June, the Greek Presidency failed to get the Agriculture Council to adopt conclusions on the highly sensitive subject of the future of the milk and dairy sector, with production quotas to expire in 2015.
A group of countries making up a blocking minority prevented the adoption of a text providing for a reduction in the fat correction coefficient of milk, as called for by Germany, the Netherlands, Denmark, Ireland, Poland and Austria. This measure would be tantamount to increasing production quotas.
The Greek Presidency presented no fewer than three versions of the draft conclusions, with a paragraph on a reduction of the fat coefficient in milk. However, 11 agriculture ministers confirmed their opposition to the text and the drop in the fat correction coefficient (France, the United Kingdom, Italy, Portugal, Hungary, Croatia, Bulgaria, the Czech Republic, Sweden, Slovenia and Slovakia). These countries represent 161 votes and slightly over 49% of the EU population.
Dacian Ciolos, European Commissioner for Agriculture, said that he would have liked a qualified majority at the Council in favour of a measure of this kind in order to make this proposal, as the decision on the timetable for the end of milk quotas in 2015 and the fat content in the calculation of the quotas were also made by qualified majority within the Council. “Certain ministers are calling on the Commission to use its authority unilaterally to modify these Council decisions”, Ciolos revealed. “I say that the Commission, by request of the Council, can use its powers to change the fat content, but it cannot presume to make this change unless there is clear political support within the Council, in other words a qualified majority. As in the earlier decisions on the fat content and the date for the end of quotas”, he stated. Setting the fat content is the responsibility of the Commission in an implementing act, but must be voted on by the management committee.
The discussions may continue under the Italian Presidency in the second half of the year. But it is unlikely that the countries in favour will get their way, as the marketing year 2014/2015 started in April. The Commission takes the view that the farmers should not be notified of any change in the rules of the game at such short notice.
The initial draft conclusions of the Greek Presidency were modified with a text proposed by the Spanish delegation. Then Cyprus requested an amendment, to ensure that the proposals on crisis management do not cover just the dairy sector, but all sectors, and that the EU is capable of managing national and regional crises. This point was hard for many so-called liberal countries to accept.
“There are quite considerable differences of opinion within the Council, and it was unfortunately not possible to adopt conclusions on this subject”, Ciolos commented at the press conference. The Commission took note of this situation and presented its recent report on the implementation of the latest milk package (see EUROPE 11100). “The promising market situation opens up prospects for dairy producers, particularly as regards exports; but they are not safe from sudden changes on the market or from crises”, the commissioner added. (LC)