Brussels, 24/02/2006 (Agence Europe) - Pending the confirmation of the presence of the H5N1 virus in a poultry farm in Ain, France, which is expected for the evening of 24 February, and which will be the first official case of contamination on a farm within the European Union, the European Commission took stock of Community aid available for farmers struggling due to a fall in consumer demand.
Market measures: to date, the Commission has only increased export refunds on chickens (from 24 to 26, and then to 30 EUR per 100 kg), the only market measure planned for this sector. At the Council of 20 February, Mariann Fisher Boel, the Commissioner for Agriculture, said that she "did not rule out, if the situation requires it, the idea of looking into further measures". The Commission provides for the possibility of co-funding exceptional market support measures up to a level of 50%, to help farmers who, in the protection zone set in place to help fight the virus, have suffered losses due to restrictions on movement of animals and the export of products.
Veterinary expenditure: Cases of outbreaks within a poultry farm will open up the possibility for Community compensation. The decision, taken at the end of 2005, on certain types of veterinary expenditure, provide for co-funding, by the EU budget, of 50% of costs incurred by the Member State in providing compensation to farmers, in case of an outbreak of bird flu, for slaughtering poultry, and 50% of the costs incurred in destroying animals and disinfecting the holding. In case of emergency vaccination, Community co-funding will be 100% of the cost of vaccine provision and 50% of costs incurred for the vaccination to be carried out.
State aid: the Commission calls upon the Member States rapidly to implement and notify it of State aid envisaged for the farmers, in order to shorten the time taken for such subsidies to be approved. The "de minimis" rule allows the Member States to grant public support to their farmers without the authorisation of the Commission, as long as this aid does not exceed 3000 EUR per holding, over three years. If a Member State wishes to exceed this limit, it must put a restructuring plan to the Commission, respecting extremely strict criteria (evidence that the farmers in question have suffered losses of at least 30%). Before this aid is paid, the countries must obtain the Commission's agreement.