Brussels, 20/03/2001 (Agence Europe) - In addition to foot-and-mouth (see yesterday's EUROPE, p.9), the EU15 Agriculture Ministers discussed, on Monday evening, the various issues related to bovine spongiform encephalopathy (BSE) to be dealt with sooner or later. They are: the external section of the Community law on withdrawal of specified risk material (SRM), the assessment of suspending the use of meat and bone meal and the different market measures intended to eliminate the crisis in the sector. The Council, moreover, deferred to a later date the adoption of proposals for recasting the sugar and cotton regimes.
Some countries like Germany, the Netherlands and Austria challenged the one month postponement envisaged by Commissioner David Byrne for the implementation (on 1 April) by third countries of the decision on withdrawal and destruction of SRM (in force since 1 October last for Member States). A first list of third countries that benefit from exemptions will be presented for approval to the Standing Veterinary Committee (SVC) on Wednesday. The Commission reportedly announced that Canada and the United States, classified as category 2 countries where the risk of BSE is unlikely but not to be ruled out, would be compelled to withdraw SRM in the same way as the Member States on this list. On Tuesday, the Commission adopted a proposal aimed at dispensing ten third countries considered BSE-free (category 1): Australia, Argentina, Botswana, Chile, Namibia, New Zealand, Nicaragua, Paraguay, Uruguay and Swaziland.
Mr Byrne said the question of eventual prolongation of the provisional ban on meat and bone meal will be discussed during the next Council as the Commission must still make a mid-term assessment report, based on the results of screening tests and the opinions of the Food and Veterinary Office (FVO) on inspections carried out in Member States. The other points discussed by the Council are:
The beef crisis. During the final press conference, Commissioner Franz Fischler pointed out that the fall in market prices for beef had caused a loss of income for producers estimated at EUR 1.3 billion for this year alone. Denmark, Germany and the Netherlands challenged from a legal point of view the special purchase for destruction measure approved on Friday at the committee on beef and veal management (see yesterday's EUROPE, p.10). In their view, the Commission does not have the power to enforce such a measure. They called on the Council's legal service for clarification. The latter said the Commission was right to reply that, on one hand, its mandate was sufficiently broad to allow it to take such responsibilities, and, on the other, that nothing prevented recourse to co-funding as long as this is provided for in the regulation. The ministers did not discuss the different measures aimed at reforming the common market organisation (CMO) for beef and veal (a seven-point plan by Franz Fischler). Germany, Italy and Austria, however, requested that the proposal to extend the use of set-aside by facilitating the production of organic fodder be dealt with as a matter of urgency and separately from beef issues, as the growing of crops must begin in April/May. These countries call on the European Parliament to recognise how urgent this matter is. In this context, France expresses its great disappointment concerning the "vegetable protein non-plan" presented on Monday by the Commission (see yesterday's EUROPE, p.12). Austria, Germany, Spain, Italy and Belgium expressed views along the same lines while pointing out that they shared, however, the objections of an economic nature raised by the Commission.
Cotton. After having heard an argument in defence of this crop by producer countries (Greece, Spain), the Presidency concluded that the Council accepted the technical aspects of the proposal to reshape the cotton sector, but that the budgetary aspect (penalties for exceeding the national guarantee production quantities) would be examined by the Special Agriculture Committee (SAC) on the basis of a compromise presented by the Spanish delegation. In the event of quotas being exceeded, the Commission proposal provides for reduction in the guide price for the calculation of aid to go from 50% to 60% of the percentage of excess. Spain suggests keeping penalties at the present level (50%) as long as total EU production does not exceed 1.6 million tonnes. From 1.6 million tonnes up, the percentage of reduction of the guide price would increase 1% each additional 20,000 tonne production.
Sugar. Commissioner Franz Fischler recalled that he accepted the principle of renewing the system for aid to sugar for "more than two years", on condition that the other aspects of the reform are accepted as such (abolition of quotas and reimbursement of storage costs). At this stage, two scenarios are possible: either the Commission presents a new amended proposal, or the Presidency drafts a compromise with the Commission.