Strasbourg, 16/11/2000 (Agence Europe) - With the adoption, by 310 votes for, 188 against and 33 abstentions, of the report by French Socialist Georges Garot, the European Parliament took a stance in favour of the establishment by Member States of "regulation funds" for correcting, to the advantage of livestock farmers, the adverse effects they suffer from crises on the pig market. Backing its rapporteur, the Parliament substantially amended the European Commission's proposal which was simply to authorise farmers that so wish to create and finance regulation funds themselves for offsetting any losses suffered during times of crisis. The Parliament hopes, however, there will be coordinated action of Member States, which would all create funds benefiting from Community cofunding of 50%. The adhesion of livestock farmers would remain voluntary but it would have a minimum duration of five years (and they would only benefit from the intervention fund in proportion to their payments if they did not join from the first year on). A ceiling is fixed for aid paid by the fund but, if farmers reduce production by 25% during a crisis period, then they obtain aid covering 100% of production after reduction. When it is financially impossible for the regulation fund to intervene in times of crisis, the European Union Member States may give their support to the fund in the form of minimum rate credits.
During the debate, Mr Garot defended the position set out in his report, which is most likely, he believes, to make the Member States more responsible and balance the market. He said he hoped the French Presidency would refer the dossier to the Council before the end of the year. Commissioner Franz Fischler rejected all the Parliament's amendments, as he considered such a structure is not likely to promote adjustment of production to real market needs and that it would entail a risk of renationalisation of the common agricultural policy.