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Europe Daily Bulletin No. 9235
Contents Publication in full By article 16 / 34
GENERAL NEWS / (eu) eu/agriculture council

Member States express concern about new Community guidelines on State aid

Brussels, 18/07/2006 (Agence Europe) - During the Agriculture/Fisheries Council on 18 July, Austria, supported by most countries (including France, Germany, Italy, Spain, Greece, Ireland, Cyprus, Luxembourg, Poland, Czech Republic, Latvia and Lithuania), expressed concern about the proposals set out in the study on amendments to the rules for authorising State aid in the agricultural sector. All rules proposed could cause a serious upheaval of the way State aid works in the field of agriculture and rural development, the delegations said, calling on the Commission to review its plans. Commissioner Mariann Fischer Boel was very firm, recalling that State aid comes under the exclusive competence of the Commission. The 2000 guidelines and the block exemption regulation (of 2004) are due to expire end 2006. The Commission has therefore already presented proposals (that have been examined by Member State experts). Austria and the other countries consider the following aspects of the new approach as harmful: - total harmonisation of the future guidelines on State aid, which would be very restrictive; - complete abolition of aid to product advertising, especially within the EU; - exclusion of processing and marketing sectors; - the end of organisations and structures in the sector of cattle and plant selection, especially when it is a case of rare breeds or varieties threatened with extinction.

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