Brussels, 16/03/2007 (Agence Europe) - At their meeting in Brussels on 19 and 20 March, the EU27 farm ministers will reach agreement on the implementation of voluntary modulation of direct farm aid in Portugal and the United Kingdom. They will discus the idea of setting up a Single Common Market Organisation (CMO) and will adopt conclusions on the lack of jobs in rural areas. In the meetings chaired by German farm minister Horst Seehofer, they will also discuss problems with controlling the food chain and the EU's dispute with Russia over Russia's embargo of Polish meat.
On Monday 19 March, the ministers will discuss voluntary modulation and problems in some member states with controlling food. On Tuesday, the ministers will focus on the Single CMO and employment in the countryside.
Voluntary Modulation. In line with a compromise struck with the European Parliament on 14 March, the Council is expected to reach unanimous political agreement on the implementation of voluntary modulation of direct aid (see EUROPE 9386). The new regulation differs from the initial draft in line with the European Council decisions in December 2005 on the EU's budget for 2007-2013 because it will only allow two member states, Portugal and the UK, to apply voluntary modulation of direct farm aid at the maximum level of 20%. These were the only two member states requesting it. The UK will be able to continue to use its own regional and unlimited modulation scheme and Portugal will be able to implement such a scheme in the future. Both countries will have to assess the impact of the modulation and report back to the Commission, which will assess the impact and publish a report by the end of 2008. In a draft statement, the Council and Commission take note of the EP's decision by a large majority to reject the initial proposal, noting that modulation should be examined in the review of the Common Agrilcutrla Policy (CAP) in 2008-2009.
Portugal and the United Kingdom are urged to publish a statement setting out how they plan to implement the voluntary modulation. The UK may brief ministers on its cofunding system and the scale of modulation, which should clearly be less than 20%, suggests the German Presidency to reassure the EP. Once the Council's deal has been endorsed, the EP's Budgets Committee will release the 20% of the 2007 rural development budget in the reserve at its meeting on 21 and 22 March (which it placed in reserve as a negotiating tool to highlight its strong opposition to the initial voluntary modulation ideas).
Single Market Organisation. The proposal published in December 2006 aims to bring together in a single horizontal regulation the 21 existing CMOs and 23 Council of the EU regulations on silkworms, ethyl alcohol of farm origin, beekeeping, competition, state aid rules, private and public storage, sugar quotas dairy quotas, etc. In the light of expert opinion, the ministers will discuss integrating the fruit, vegetable and wine industries in the Single CMO (some member states oppose this ahead of current discussion surrounding reform); adding pork to the list of products eligible for funding (many pork producing countries want this measure to continue to cover pork even though it is more than 30 years since it was last used); transferring powers to the European Commission that are currently held by the Council (several member states oppose this); and how the single management committee, that will replace the various sectoral bodies, will operate (EU member states fear a downgrading of expert advice).
Employment in the countryside. In conclusions to be adopted unanimously, the Council will stress the important role of the first pillar in the CAP, namely aid to stimulate markets and beef up farmers' income. It points out the key role played by direct payments in helping European farming fulfil the series of duties it has towards society. The Council recognises, however, that there is continuing uncertainty surrounding the impact of CAP reform on employment and the structure of farming and the natural environment. The Council also stresses the importance of the European agriculture model for employment in the countryside and preserving the beauty and diversity of landscapes, and the need to boost the second pillar of the CAP, rural development, to improve living conditions in rural areas.
Controls in the food chain. Ministers will discuss failings in national imported food chain control systems with EU Health and Food Safety Commissioner Markos Kyprianos, whose veterinary services identified failings in 14 member states.
The German Presidency will brief ministers on the outcome of two conferences, one on renewable resources (in Nuremberg on 5 and 6 March) and one on the role of food and physical exercise in the quality of life (Badenweiler, 25 to 27 February). (lc)