Brussels, 03/10/2008 (Agence Europe) - In the middle of September, the European Commission adopted a draft amending budget (the 8th for the 2008 budget) introducing a new budget post 'Rapid response to rising food prices in developing countries'. It is planning to reserve €750 million in commitment appropriations while the relevant legislation is passed. No payment appropriations have been earmarked for 2008 because the legislation is unlikely to be adopted before the end of the year.
The European Commission suggested on 18 July 2008 that a rapid response fund be set up to help developing countries cope with the hike in food prices with a billion euros in funding (€750 million in 2008 and €250 million in 2009). In order to finance it, the European Commission is suggesting in 2008 and 2009 using some of the margins available in Heading 2 of the multi-annual financial framework (margins mainly from farm spending). (L.C. transl fl)