EU's agricultural policy

In a recent plan to revamp the EU's agricultural policy, it transpired that the whole idea had to be shelved for the time being. Over a few days last July, there was enough reason to believe in some sort of reform regarding the EU's notorious common agricultural policy. The community lavishes around €40 billion annually on direct subsidies to European farmers.

It is by far an expensive way to create surpluses, high food prices, environmental damage and harm to Third World farmers. Franz Fischler, the EU's agriculture commissioner, proposed a shake-up to reform the policy. He intends to cut subsidies and at the same time redirect the money by decoupling it from the farmers' own production. Through these measures, farmers will no longer be paid to overproduce, instead would they get flat payments in return.

Ever since Mr Fischler unveiled his proposals, it had been clear that the big beneficiaries of CAP would fight to prevent such measures. In September 2002 six ministers, plus a French speaking bit of Belgium, signed a letter drafted by France defending the CAP members. The message was clear enough: "forget about Fischler's reforms". Mr Fischler was understandably bitter and clashed publicly with Herve Gaymard, the French farm minister, who also happens to be a close friend of President Jacques Chirac.

Though the French insisted to get at least 10 countries to sign their letter, they only ended up with six members, with Italy being the notable absentee. On the other side, the Dutch government argued that if the CAP was not reformed before the EU admits the 10 new members, farm spending in the coming years will escalate by a further €20 billion a year. It is evident that Germany, one of the most powerful members, will agree to the French demand and delay the reform until after 2006.

So far as Malta is concerned, it will be of urgent and utmost interest to the Maltese farmer to be informed whether these developments were taken into consideration during Malta's EU negotiations. At this stage, it is also MIC's duty to explain and communicate the implications of this issue to the Maltese citizen and the farmers in particular.