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Europe Daily Bulletin No. 7739
Contents Publication in full By article 17 / 39
GENERAL NEWS / (eu) eu/agriculture council

Decisions expected on prices for 2000/2001 and ban on specified risk material

Brussels, 16/06/2000 (Agence Europe) - The amendment to the decision on the ban of specified risk material (i.e. BSE) and agricultural prices for the 2000/2001 marketing year are the two main subjects on the agenda of the Agriculture Council to be held on Monday and Tuesday, 19 and 20 June in Luxembourg, under the chairmanship of Portuguese Minister Luis Capoulas Santos. Reform of the hemp and flax sector being postponed as the European Parliament has not given its opinion (see yesterday's EUROPE, p.14), the agenda is as follows:

Institutional prices for the 2000/2001 marketing year: The Council will attempt to reach an agreement on this issue which has been disassociated from that of help and flax reform. There are, however, differences on several points and positions have changed little, it seems, since the Council in May (see EUROPE of 13 May, p.7 and 17 May, p.11). Most prices have already been fixed in the context of CAP reform under Agenda 2000. For the remainder, the Commission proposed: 1) reduction in two stages of monthly increases for cereals, which would go from 1 euro/tonne/month to 0.93 euro for 2000/2001 and 0.85 for 2001/2002. Nine Member States are opposed to this reduction; 2) alignment of the intervention period for cereals for Sweden on that of the other northern countries (1 November to 31 May). Sweden is opposed to this change and keeps to the period fixed by its act of accession (1 December/30 June); 3) keeping the current level of prices for sugar, rice, pigmeat and sheepmeat, and aid for silk worms.

Ministers are expected to adopt the decisions concerning pigmeat and sugar for which there is a deadline (July).

Common market organisation in pigmeat sector: The Council will hold a policy debate on the establishment of national regulatory funds for pig farmers' income. This proposal does not for now give rise to enthusiasm among Member States. Only France, Austria and Portugal took a stance in favour of this income insurance system (see EUROPE of 3 June.

Reform of the common market organisation for rice: Commissioner Franz Fischler will present his recent proposal intended to ensure balance on the European rice market and promote greater competitiveness of Community producers. It is based on: 1) increased direct aid to producers; 2) the abolition of the intervention mechanism in exchange for increased external protection (see EUROPE of 8 June, p.8).

Ban on specified risk material (SRM like BSE): The Council must: a) either put off until 1 July the ban on using material presenting risks as regards ternsmissible spongiform encephalopathies (the ban foreseen in the Commission's 1997 decision on BSE and its implementation has been regularly postponed since); 2) or replace this ban by a new regulation. During its meeting of 7 June, the Veterinary Committee had not managed to reach a majority. Seven Member States had voted in favour, four against (Finland, Austria, Greece, Netherlands) and four abstained (Germany, Spain, Portugal, United Kingdom) (see EUROPE of 13/14 June, p.13). It is therefore up to the Council to enact. It has several possible alternatives: i) adopt by qualified majority the Commission proposal; ii) modify it with the agreement of the Commission; iii) reject the Commission proposal by simple majority; iv) note the status quo (the Commission would then be able to adopt measures envisaged); v) postpone once more the implementation of the ban on specified risk material.

Other points: Sweden again called on the Council to discuss animal transport. Italy hopes to evoke a moratorium on the use of genetically modified organisms.

Professional bodies, the COPA and COGECA, have announced a demonstration of 5,000 to 6,000 farmers on 19 June in Luxembourg to protest against the disappearance of aid to nut producers. Four thousand Spanish farmers are expected to make up the large part of the demonstrators. An identical demonstration took place on the fringe of the informal session in Evora, Portugal (28-30 May).

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