Luxembourg, 27/06/2002 (Agence Europe) - While the services of Commissioner Franz Fischler were putting the final touches to their proposals on mid term amendments to the Common Agricultural Policy (PAC), due to be adopted by the Commission on 10 July, the French Agriculture Minister, Hervé Gaymard spoke at the Agriculture Council on Thursday in Luxembourg and opposed any anticipated reform of the sector. Germany and the United Kingdom declared that the Commission proposals appeared to be going in the right direction.
France used the occasion of its memorandum on the implementation of the Berlin agreements on the PAC to oppose certain Commission intentions. During a press conference the French Minister, Mr Gaymard, stated that his country would refuse any decrease in aid and had certain difficulties with modulation (a system, he explained, that was too complicated and which didn't work). He indicated that his country didn't wish to "undress" the 1st Pillar (market expenditure) in order to clothe the 2and Pillar (rural development. He favoured the maintaining of the 1st Pillar, which was "solid" and capable of ensuring "the existence of peasant farmers". In his memorandum, France refused any lowering of prices, particularly cereal prices, whereas the Commission was preparing to put forward an intervention price (as from 1 July 2004) that was 5% lower and which would be accompanied by an increase of EUR 3 in direct aid "You must not get the exercises mixed up: France is ready to enter the substantive debate on CAP development, a debate that will unfold between 2004 and 2006 (…) in conformity to the timeframe set at the European Council in Berlin", said Mr Gaymard. He felt that mid-term review should allow improvement in the way certain sectors work (wine, fruit and vegetables, poultry and plant protein), and definitive settlement of the problem of cereal imports from the Black Sea.
During another press conference, the German Minister, Renate Künast, declared that the Commission's proposals "are along the right lines" although she added that she still hoped to examine the budgetary consequences. Margaret Beckett, from Britain, considered on the fringe of the Council that the Commission's proposals are "along the lines hoped for", but expressed reservation about the subject of EUR 300 000 aid ceilings per farm. Portugal, also, presented its contribution by stating it was in favour of strengthening the market spending pillar (see EUROPE of 21 June, p.12). We would point out that the Commission is said to be envisaging, in addition to unlinking and aid ceilings of EUR 300,000 per farm, a 3% annual reduction of aid from 2004 in order to achieve a 20% reduction in seven years. The savings thus made (EUR 500 to 600 million annually from 2005) would be redistributed to the Member States for rural development.