Brussels, 14/02/2002 (Agence Europe) - The Agriculture Council, meeting on 18 February and chaired by Miguel Arias Canete, will debate the European Commission's proposal for premiums in the tobacco sector and examine a request by Italy and France aimed at securing national aid for the crisis distillation of table wine. In preparing the meeting with their counterpart from applicant countries, at the next Agriculture Council (19 March), ministers will set out their positions over the agricultural aspects of the Commission's note on the financial framework of enlargement. Italy will present its position on the reform of the common agricultural policy (see EUROPE of 13 February, p.14). Here is an overview of the subjects on the agenda:
Premiums in the tobacco sector: ministers will have a policy debate on the Commission's proposal mainly aimed at extending for three harvests (2002 to 2004) the level of premiums and guarantee thresholds (volumes of production eligible for aid) for the different groups of varieties of tobacco. Most countries accept the principle of extending the scheme by three years (except the United Kingdom and Sweden which would like a one year extension to be able to envisage an in-depth reform of the sector as soon as possible). Talks within the Council's preparatory groups highlighted deep divisions over certain political elements stemming from this proposal, which are: - (1) the possibility of envisaging, in three years (when the sector is to be reformed), a gradual abolition of aid to the tobacco crop: a "recital" in the proposal refers to the Commission's communication on the strategy in favour of sustainable development, presented to the Gothenburg European Council last year, which provides for this system being adapted "so as to allow for a gradual abolition of subsidies", while setting up measures aimed at developing new sources of revenue and economic activities for producers and the labour force. "Some countries (tobacco importers) like Denmark, Sweden, the Netherlands, Finland and Britain, share the Commission's approach, unlike most producer countries (Greece, Italy, Spain, France and Portugal) which oppose this prospect on principle, and which would like to abolish this "recital"; - (2) the funding of new missions allocated to the Community Tobacco Fund: the Commission proposes replacing the Fund's current mission that is not used much (developing agronomic research to find less harmful varieties), by a consumer information mission on the harmful effects of tobacco and by measures aimed at reconverting tobacco growers to other activities. Yet, this is not to the liking of producer countries, which also have reservations as to the suggestion of increasing the percentage of the retention on the premiums that fuel this fund to 5% in 2004 (against the current 2%). May we point out that the issue has to be settled quickly as the sowing season is close.
Crisis distillation in the wine sector. Paris and Rome will ask the Council (which will have to decide through unanimity) to be allowed to complement with national aid consumer prices (regarded too low) paid for crisis distillation. This distillation operation concerns 4 million hectolitres of table wine in France and 4 million hectolitres in Italy too. France and Italy will, in particular, have to try to convince their Swedish, Austrian, Danish and Dutch colleagues who are against national aid.
Regarding enlargement: as the fifteen EU agriculture ministers are to met their counterparts from the candidate countries at their next meeting, the Presidency would like the Council first to debate the agricultural aspects of the Commission's note on financing enlargement. "The aim consists in being able to wash the dirty linen at home, so that it arrives nice and clean before the candidate countries, rather than spread differences before them", a diplomat summarised. You may recall that this note, already discussed on several occasions (within the General Affairs and EcoFin Councils) and which should again be discussed at next Monday's General Affairs Council, has led to great reservation, especially on the part of Germany, the Netherlands, Sweden and Austria (as well as France and the United Kingdom) regarding the payment of direct agricultural aid to the future members.
In addition, Commissioner David Byrne will brief ministers on his proposal to combat African Swine Fever (see EUROPE of 2 February, p.12). As miscellaneous, Luxembourg, backed by France and Belgium, will raise the problem of apiculture, sector the worrying situation of which was recently stressed in a European Parliament resolution (adopted on 13 December 2001). A "friendly" demonstration of European bee-keepers is also scheduled in Brussels on the day of the Council. Denmark (which is raising the problem of the respect of Community legislation by Member States) and Germany (over a problem discovered in Bavaria with animal carcasses) have asked to be able to intervene on subjects linked to the BSE crisis.