Luxembourg 11/06/2007 (Agence Europe) - Meeting in Luxembourg since Monday 11 June, the EU agriculture ministers seemed in a position to reach a political agreement the next day on the reform of the common market organisation (CMO) for fresh and processed fruit and vegetables. The first version of the compromise text was felt to be still lacking by the main producing countries (Spain, Italy, France, Greece and Portugal), although the European Commission showed openness on the two most controversial issues: the decoupling of aid and crisis management measures in the sector.
Decoupling of aid: at the request of a number of the producing countries, the first compromise text provided for a transition period of two years (2008 and 2009) before total decoupling is brought in (breaking the link between the sum of payments and the quantities produced) in favour of processed fruit and vegetables. Each member state would be free to choose, no later than 1 November 2007, the products to benefit from this transitional period, and the proportion of aid remaining coupled to the volumes produced. The “coupled” part of the aid will be paid in the form of payment by hectare. The countries will also decide on the sum of the aid per hectare, respecting their national envelope.
Crisis management: under the first draft compromise distributed to the ministers, the ceiling for Community aid, currently set at 4.1% of the value of production sold by the producer organisations, would be raised to 4.6%, on the condition that the additional credits would be used to pay for prevention and crisis management measures. The cost of this concession has been put at between €50 and 60 million.
Plans of Mariann Fischer Boel, the commissioner for agriculture, to launch a European programme for the free distribution of fruit and vegetables in schools, have hit something of a delay (there is said to be dissension within the College of Commissioners). The Commission will therefore be invited by the Council first of all to present a proposal on the creation of such an operation. Ms Fischer Boel believes that it will be necessary to make €100 million in Community funding available to this end, plus an identical envelope to be granted by the budgets of the member states.
The proposed compromise also provides: - to authorise the member states in question (Finland, Cyprus and Italy) to pay state aid for one year more (2008) in favour of potato producers; - to grant Sweden and Denmark the right to pay surface area-related payments for orchards and nurseries for fruit and vegetables; - to create, for the new member states which apply a simplified direct aid regime, decoupled payment specially devoted to surface areas with fruit and vegetables (these countries already benefit from this type of targeted premium in the sugar sector); - to allow Spain and Italy to pay a national aid of €15 million, in 2008 alone, to help their tomato processing industry to adapt to reform decisions. (lc)