Brussels, 07/06/2007 (Agence Europe) - In Brussels on Thursday 7 June, the European Parliament adopted the report by María Isabel Salinas García (PES, Spain) by 526 votes to 95, with 32 abstentions, amending the initial proposal so as to grant producers aid that is more closely tailored to the various different products and to reinforce crisis management measures. The EP brought only minor changes to the initial recommendation by its agriculture committee (se EUROPE 9423).
Ahead of the final negotiations among European ministers in Luxembourg on 11-12 June, Agriculture Commissioner Mariann Fischer Boel was prepared to accept a transition period before aid for processed products became fully integrated into the single farm payment system, but she strongly opposed setting up a Community fund specifically for crisis management measures in the sector.
Step by step decoupling: the European Commission proposes the introduction of full decoupling of aid for processed products. The EP amended the proposal so as to ensure that, for a certain length of time, part of the aid remains linked to level of production. Until 2013, 50% of national ceilings for the granting of area payments may continue to be paid to producer organisations (POs) whose members grow industrial tomatoes. For citrus fruits, aid for processing should be retained until 2009-2010.
The EP also brought in area payments for garlic and mushrooms (to help EU countries meet the challenge of Chinese competition). Potatoes will be withdrawn from the state aid system and put into the single payment system. Amendments also included specific aid for strawberries, raspberries, cherries and gooseberries, similar to the system in operation for nuts - this to take account of the difficulties encountered by the new member states. This aid will amount to €230/hectare, for a maximum surface area of 130,000 hectares.
In addition, the EP increased Community co-financing of operational funds in more cases (merging POs, integrated production, etc) from 50% to 60% and increased the ceiling on Community aid to operational funds from 4.1% to 6% (of the value of the production marketed by the PO).
Crisis management: to allow POs to manage major crises better (when, for example, prices fall), the Parliament once again called for a security fund, the funding of which would be separate from that of POs' operational programmes. This fund would be two thirds financed by the EU, with the final third coming from the POs in the areas affected by the crisis. Producers not affiliated to POs would also be eligible for this aid.
Imports: the EP said a special safeguard clause should be introduced, allowing additional import duty to be imposed. Unlike the parliamentary committee, the Parliament did not deem it necessary to retain export refunds in the fruit and vegetable sector. (lc)