Brussels, 21/05/2001 (Agence Europe) - The Council of Agriculture Ministers, scheduled over two days in Brussels, will officially begin on Tuesday at ten o'clock with a public debate over the ethical aspects of farming conditions. Meetings "in confessional" between the Member States, the European Commission and the Swedish Presidency will be held in at the same time to try to reach a compromise over the controversial dossiers of this meeting: the reform of sugar and the modifications of the common market organisation (CMO) for bovine meat.
The Swedish Presidency will try to use the pressure it is exercising on the Ministers to conclude a political agreement concerning the difficult reform of the sugar sector. In fact, as the system expires next 30 June, the Commission threatened to take conservation measures to fill the legal void that results from the blocking of the dossier at the Council level. Without wanting to substitute itself for the Ministers, the Commission could, in case of a "shortcoming" by the Council, take the following measures: - maintain the present production quotas, attached to a permanent reduction of these quotas by 115,000 tonnes (as it proposed in its initial proposal) - maintain the main structure of the system, that is to say the institutional prices; - question the aids to refining; - end the system of imports with preferential quotas (however the Commission could propose autonomous quotas for the third countries that would be the most affected); - ending of the reimbursement system for storage costs. To reach a political agreement, the Presidency will have to subtly manoeuvre to force a compromise over the following elements:
1) Duration of extension for price system: the Commission is prepared to concede to the 10 Member States favourable towards a reduction of at least five years, a period of a little more than two years (on condition of accepting the other aspects of the reform such as the ending of the reimbursement of storage costs system), while the United Kingdom, Denmark, Sweden and the Netherlands cannot accept the maintaining of the status quo for two years. Germany finds itself in a central position close to that of the Commission.
2) Interim revision clause: The Council is split in the same manner as above between the delegations that want for this clause to be relatively neutral and those which want for certain elements of the reform to be predetermined (such as the reduction in prices or quotas).
3) Storage costs: The Commission wants to end the system for the reimbursement of storage costs to be able to achieve savings in the EAGGF budget estimated at EUR 300 million. The producer countries feel that this is, in reality, a false saving since the Commission receives the same amount in the form of producer contributions that fill the coffers of the Community budget's own resources. According to France, the solution would consist, for example, of lowering the quotas and/or prices, and to reduce the reimbursement costs to achieve the savings wanted by Commissioner Fischler.
The Presidency and the Commission hope that the Council will also reach a political agreement over the measure of Franz Fischler aimed at re-establishing the balance in the bovine meat sector. The Presidency recognises that the negotiations will be very difficult as there is no qualified majority on any of these measures (introduction of the individual rights according to producer for the premium for male bovines, freeze on certain rights for "milking cows" premiums, limit to 90 head the premiums for young bovines and milking cows, lowering the density ceiling for the right to the premium and the ending of the intervention ceiling of 350,000 tonnes in 2001 and 2002). The margin for manoeuvre is all the more reduced as the Commission rejected all the amendments adopted by the Parliament over these measures (see EUROPE of 18 May, p.14).
For the debate on farming, the Swedish Presidency has drafted a working document including a few paths for thought outlining moral values on the welfare of animals and over the perceptions of public opinion in reaction to recent food scares. The Ministers should notably speak on the points that are dear to them, such as the transport conditions for the animals or even the latest health developments, notably, the release of pictures of animal pyres.
The other issues included on the Council agenda are as follows:
BSE/Foot and mouth disease: Commissioner David Byrne will report back on the BSE tests, focussing on the heterogeneous nature of results according to the country concerned. In countries like Germany and Spain, most BSE cases detected are in cattle for slaughter, which suggests that there may be failings in clinical surveillance systems. France may request a lowering of the age of cattle (24 months rather than 30) at which tests must be carried out (Germany already tests animals over 24 months old). The Commissioner will inform Ministers of the procedure for suspending the use of bone and animal meal. A proposal will be presented to the Veterinary Committee on June 6. Mr Byrne will also report back on foot and mouth disease which seems to be coming to an end, except in the United Kingdom.
Food safety hygiene rule: David Byrne will give a report on progress on a package of five draft Reguatlions on food safety, presented on 17 July 2000. The Regulations will replace the measures previously found in 17 separate Directives on food safety. The Council's preparatory work has made progress on the two food safety Regulations laying down specific rules for food products of animal origin. The others cover organisational details for official controls of products of animal origin.
Olive oil: the Council will hold a policy debate on the Commission's proposal to extend the olive oil aid scheme for a further two years. Discussion on technical aspects have already taken place in the Special Committee on Agriculture (SCA), particularly concerning the issue of denominations of origin. Ministers are expected to discuss the length of time the scheme should be extended for. Producer countries are counting on a five year extension.
Sheep meat: Mr Fischler will present his proposal to overhaul the market in sheep meat, adopted on Wednesday (see EUROPE of 18 May, p. 15). The Presidency is not planning to hold a debate at this stage.
Nuts: Community funding for almond, hazel nut, walnut, pistachio and carob farmers were due to expire on 15 June 2000. As requested by Member States and outlined in a Commission proposal, the Council has approved a Regulation extending for no longer than one year (until 15 June 2001) the funding of some programmes for improving marketing. Since these measures will soon expire, Spain and other producer countries are expected to bring the subject to the Commission's attention again.
Enlargement: over dinner, Ministers will be discussing agricultural aspects from the accession negotiations with Commissioner Fischler.