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Europe Daily Bulletin No. 11509
SECTORAL POLICIES / (ae) agriculture

Decisions on agricultural crisis expected at Monday's Council

Brussels, 10/03/2016 (Agence Europe) - EU agriculture ministers, meeting in Brussels on Monday 14 March are expected to reach agreement on a raft of measures to alleviate the crisis that is hitting a number of agriculture sectors in the EU, including milk and dairy products and pigmeat. Italy and Spain in particular will also call for measures to help producers of fruit and vegetables, especially tomatoes.

The Dutch Presidency of the Council indicated on Thursday 10 March that it would put a number of possible measures to the Agriculture Council to ease the crisis with the aim of getting Council to take some decisions. In light of the comments made by Agriculture Commissioner Phil Hogan, the joint Franco-German text sent to the Commission (see EUROPE 11508) and the various contributions from the delegations, it is not unreasonable to assume that the Council will agree the following measures: - implementing “voluntary measures giving farmers and dairies instruments to control or reduce their production” of milk, as proposed in the Franco-German statement seen by EUROPE; - EU funding (making use, if necessary, of the contingency reserve) to assist farmers depending on the specific difficulties being faced in each country (the idea of a temporary, exceptional aid to help farmers cope with cash flow shortages is believed to be under consideration, somewhat like the €420 million targeted aid granted in September 2015); - setting up a European meat (pork and beef) monitoring body; - reactivating private storage aid for pigmeat; - raising the European intervention cap for powdered milk (currently 109,000 tonnes per year); - changes to the private storage scheme for butter and powdered milk; - increasing the ceiling for de minimis aid from €15,000 to €30,000 (per farm over three years); - export aid for European agricultural products through simplified aid arrangements for promotion and consideration given to putting in place a European export credit mechanism compatible with multiannual financial framework (MFF) rules; - measures to strengthen the position of farmers in the food supply chain. The Commission will also be urged to negotiate an end to the Russian ban on the import of pork and milk.

In the fruit and vegetables sector, Spain and Italy are calling for the exceptional measures introduced in 2015 (aid following the Russian embargo) to be continued, an increase in withdrawal prices, promotion measures and safeguard measures to protect the EU market from Moroccan tomatoes.

Also at the Council, the Commission and the European Investment Bank (EIB) will draw the attention to the existing investment and financing opportunities.

Various points. A number of delegations, including those of Italy, Spain, Greece, Portugal, Romania and Slovenia, will draw attention on the impact in the internal market of the use of the voluntary “traffic light” rating system for food labelling, which is used, principally in the United Kingdom, to classify foods as more or less healthy by assigning a colour code. These delegations argue that this kind of labelling does not comply with the provisions of Regulation 1169/2011 on the provision of food information to customers.

The Council will also discuss the outcome of a high-level meeting on African swine fever held in Tallinn, Estonia, on 26 February. Cases of this disease have been found in Poland and the Baltic States. Finally, the Council will take note of a UK contribution aimed at simplifying the current audit system and methodology of expenditure related to the common agriculture policy. (Original version in French by Lionel Changeur)

Contents

SECTORAL POLICIES
ECONOMY - FINANCE
EUROPEAN PARLIAMENT PLENARY
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
NEWS BRIEFS