Luxembourg, 17/06/2003 (Agence Europe) - Before submitting a new compromise on reform of Common Agricultural Policy (CAP) that evening, the Greek Presidency decided at the beginning of the Agriculture Council, which opened at 15h00 in Luxembourg, to discuss with the European Commission and most Member States in order to fine tune the offer which, according to Commissioner Franz Fischler, should result in an agreement. The compromise text was to be presented around 20h00 to ministers who, after discussion lasting around one hour at most, were to meet again on Wednesday.
EUROPE has reason to believe that the Presidency will allow Member States a certain amount of flexibility for fixing, at Community level, a minimum rate of decoupling of direct aid (for example 80%, which would allow some countries to do more until total decoupling of 100% is reached). A decision had still to be taken between minimum decoupling for the whole of the CAP (horizontal) or for some sectors only (vertical). Member States could also distribute decoupled aid according to regional criteria. At this stage, Mr Fischler seemed to remain firm on his intention to lower the intervention price of cereals and milk and on the use of aid degression for financing future reforms. For aid modulation, the compromise was to be based on Franco-German suggestions: modulation at a fixed rate of 4% per year plus, possibly, 1% for market crisis management. At the beginning of the meeting, the Council President, Georgios Drys, confirmed that the aim is to reach a political agreement this week, if possible before the beginning of the European Council in Thessaloniki. Shortly before the meeting, Mr Fischler warned that this second compromise would be the "final offer". "No-one should believe that we are playing a game and that we shall present a new compromise tomorrow", he said, saying that this offer, which represents a "substantial movement" on the part of the Commission, has a great chance of being accepted.