Brussels, 10/05/2007 (Agence Europe) - On Tuesday 8 May, the European Commission decided to seek the views of interested parties on the measures to be taken for the further reform of the cotton sector. The 2004 reform, which came into force on 1 January 2006, was annulled by the European Court of Justice in September 2006, following a complaint from the Spanish government (see EUROPE 9260). The aim of this consultation exercise, which will run until 22 June, is to gather contributions which will inform the Commission's preparation of the draft reform and the report on its socio-economic impact.
Cotton production has been supported by the Common Agricultural Policy (CAP) since the accession of Greece to the EU in 1981. The support system has been modified several times, with the last, and most ambitious, being decided by European agriculture ministers in 2004. The new arrangement, which has been in force since the start of 2006, saw the integration of the main part (65%) of the aid into a single payment scheme. 35% of the aid remained coupled to production. To ease adaptation to the new system, €22 million were earmarked for rural development measures in cotton producing areas.
The 2004 reform was challenged by the Spanish government, which sought its annulment in the European Court of Justice. In September 2006, the Court annulled the new arrangements of this common market organisation (CMO). The Commission has been invited to bring forward, within a reasonable timescale, a new regulation for adoption by member states. (lc)