Brussels, 18/06/2002 (Agence Europe) - The proposals that the European Commission is to approve on 10 July on mid-term review of Common Agricultural Policy (CAP) could prove quite ambitious, mainly with regards rural development. According to some sources, the services of Commissioner Franz Fischler are envisaging proposing not only a linear reduction of direct aid to release up to EUR 6 billion in six or seven years, but also unlinking of aid in the cereals and stock framing sectors thanks to the establishment of a surface premium. A debate on the future of the common market organisation (CMO) for milk and dairy products could be initiated at Council level, thanks to the publication of a report comprising four scenarios on quotas (status quo, increased quotas and new fall in guaranteed prices partially offset, setting in place of a double quota - one for EU consumption and the other for unsubsidised deliveries, and the abolition of quotas). Sector-specific adjustments proposed will concern rice (establishment of quotas in place of customs duties), rye (fall in intervention price) and durum wheat (aid reduction). Furthermore, depending on the result of the last estimations on market evolution expected for Wednesday, the Commission could propose an additional fall of 5% in the intervention price for cereals which would not be accompanied by compensation in the form of a rise in premiums (see EUROPE of 15 June, p.10). On the other hand, no additional modification is foreseen for oilseeds and beef.