Political agreement on extending aid for nut and carob bean farmers for a year - Negotiations continuing on tobacco and enlargement

Brussels, 18/03/2002 (Agence Europe) - After a first inconclusive exchange of opinions on premiums and thresholds for the tobacco industry, the Agriculture Ministers managed on Monday afternoon in Brussels to reach political agreement on the European Commission's proposal to extend for one year the funding of plans to improve the quality and marketing of nuts and carob beans. Cost for 2002 Budget: EUR 54.3 million.

As EUROPE was going to press, the Agriculture Council was starting to discuss the tobacco industry again, before moving on to discuss enlargement, following interruptions due to disagreements about the future of tobacco farming. Tobacco producing countries (Greece, Spain and Italy) opposed the plan (outlined in Recital 5 of the Commission's proposal) to gradually scrap premiums and train the farmers for other jobs. Other delegations, like Denmark and Germany, want to send a reassuring message to public opinion back home about making better use of EU subsidies and taking greater account of public health issues. The Spanish Presidency felt that there was margin for reaching political agreement in the negotiations in two areas - rephrasing the Recital (toning it down no doubt) and increasing the amount deducted from premiums to fund the Community Tobacco Fund (the Commission is proposing to raise this from 2% in 2002 to 5% in 2004). Italy also protested about the Commission's desire to reduce premiums for the V variety of tobacco leaves which are difficult to sell. The other results of the Council can be summarised as follows:

• Nuts. The Council reached political agreement (with only Sweden abstaining) on extending the funding scheme for plans to improve the quality and marketing of nuts that was due to run out at the end of 2001 (EUR 241 maximum aid per hectare, with a 75% ceiling for the Community contribution). Germany, Denmark, Sweden, the Netherlands and the UK were very reluctant about this but agreed to the proposal as long as the Council and Commission release a declaration that these will be the last support measures taken under the tobacco scheme. The proposal also outlined specific aid for one marketing year, EUR 15 per 100 kg, for hazelnuts. Italy, supported by Greece, would have preferred to extend the period when the aid would be paid out, but the Commission explained the issue could be settled by the Management Committee. Portugal made a declaration noting, like Parliament, the need to provide a permanent aid scheme for tobacco farmers.
• Without debate, the Council adopted conclusions concerning existing agreements (particularly with New Zealand) and future agreements (with Chile and Mercosur countries). EUROPE will return to this tomorrow.