Luxembourg, 21/04/2004 (Agence Europe) - The Agriculture Minister of the EU will continue talks on Wednesday evening on the reform of aid to Mediterranean products (tobacco, olive oil and cotton). Commissioner Franz Fischler showed flexibility on the date of the implementation of the reform, and on various parts of the proposal on the olive oil sector, but was not able, at this stage, to agree to the request of the tobacco-producing countries. The Fifteen seemed prepared to conclude a political agreement on this dossier, probably this Thursday morning.
During initial talks between the Commission, the Presidency and the Member States, five "northern" countries (Germany, United Kingdom, Denmark, Sweden and the Netherlands) repeated their wish to apply the proposed reform for tobacco without concessions: three-stage implementation of a single-payment regime for all current aid to producers (100% decoupling). The producing countries (Italy, Greece, Spain, Portugal and France) asked for decoupling of just 30%. Mr Fischler categorically rejected this "totally unrealistic" request, especially as the five northern countries have a blocking minority. He said that he was prepared to postpone the reform's implementation from 2005 to 2006 (for all products), and to grant a longer transition phase from the current system to total decoupling for tobacco. Furthermore, Greece, Italy and Spain spoke up for different treatment for different regions, which Mr Fischler refused (for reasons of discrimination). The Commission did, however, agree to different treatment for different products, which could be examined as a possible compromise (maintaining a regime of exemptions for high-quality products).
For olive oil, the new Spanish Minister Elena Espinosa Mangana asked for 119 million EUR to take account of the upwards revision of national guaranteed quantities assigned to it in 1998. Spain stated that the proposed reforms would save 115 million EUR. The Commission agreed to the requests by France and Portugal that new olive plantations since 1998 should be taken into account in the calculation of aid.
For cotton, Greece made the following requests: - an increase from 507.8 million EUR to 571.7 million to the financial envelope of aid to production; -a reduction from 103 to 64 million in aid to cotton to be transferred to rural development. Spain asked for 20% decoupling of aid to cotton, compared to 60% in the proposal.
As EUROPE was going to press, the Council was examining an initial compromise text by the Irish Presidency, which was drawn up in the light of the concessions made.