Brussels, 24/03/2003 (Agence Europe) - Commissioner Franz Fischler is likely to present, on Tuesday, two new studies on the consequences the Common Agricultural Policy (CAP) reform proposals will have on the income of farmers in the current EU and in the enlarged EU. These studies are intended to update those which were published in January to analyse the effect of July 2002 guidelines on mid-term review of CAP. In addition to the necessary taking into account of the Franco-German agreement of October 2002 providing for a threshold for agricultural market spending from 2007 to 2013 (Mr Fischler above all amended his strategy on the modulation of direct aid), the new studies will assess the effect of reform in the milk and dairy products system, a sector for which the Commission had presented only possible options in July 2002.
In its studies in January, Mr Fischler had predicted that: - farmers' income would increase on average 1.7% by 2009 compared to 2001; - the decoupling of aid would not lead to production being given up but to adjustments where necessary (the effect of decoupling would be limited in the arable crop sector and extended in the beef sector); - and modulation would have hardly any effect on the markets.