Luxembourg, 12/06/2003 (Agence Europe) - French and German suggestions on reform of Common Agricultural Policy (CAP) could open the way to a political agreement by the Agriculture Council on this issue. The Greek EU Presidency was, on Thursday evening, expected to submit a new draft compromise inspired by the Franco-German ideas to Agriculture Ministers of EU Member States. During the "confessional" meetings held on Wednesday and Thursday, the main elements of the first Presidency compromise were rejected by a Council majority (see yesterday's EUROPE, p.8). The timetable for negotiations remained somewhat vague, but some sources seemed to give preference to two scenarios: - an agreement by Friday morning at the latest; - or the postponement of work until Wednesday when negotiations would be completed.
Having remained vague for a long while, the French and German suggestions became clearer after the meeting, on Thursday, between French Minister Hervé Gaymard, the Commission and the Presidency. Mr Gaymard announced that the compromise between the two countries provides for: - partial uncoupling of 60% for cereals (even if German Minister Renate Künast would prefer to go up to 80%) and of 40% in the livestock sector, but only for producer premiums for male cattle (the remaining premiums for stock farming would remain linked to production); - modulation of aid at a fixed rate of 4% annually plus 1% for the management of eventual crises. The phasing out of aid (reduction of aid to finance sector-specific reforms to come) would not be retained. Among the questions still outstanding at this stage was the additional reduction in cereal and milk prices (that France does not wish to hear of).
The day before, Mr Gaymard had simply told the press that the Franco-German agreement on CAP reform, announced on Tuesday by Mr Chirac and Schröder, was a "contribution to a European solution to the issue" comprising the following three elements: - in the event of agreement, it will be "out of the question" to go back, after the ministerial WTO confedrence in September in Cancun, on reform endorsed; - reform will be applied from 2007 in conformity with the financial agreement finalised in October 2002 during the European Council in Brussels (with, however, a margin of flexibility for modulation); - there will be no price reduction for milk and cereals, no phasing out of aid, no total uncoupling in any of the productions, and modulation at a reasonable level. Mr Gaymard explained that, between France and Germany, there are a number of principles that have been enacted and which, moreover, are shared not only by France and Germany but still by a broad majority of Member States. Spanish Minister Miguel Arias Canete said he could support this Franco-German agreement since the position held by his government is close to that held by the French governemnt.
Commissioner Franz Fischler for his part, who welcomed the efforts provided by France to reach a compromise, declared on Thursday during a press conference that the Franco-German agreement is not an agreement as such with precise figures or something that is engraved for ever in stone, but rather an agreement on the direction to be taken.