Plans to boost agriculture funds for new members

The Maltese farming community and environmental NGOs will be more than pleased to learn that the European Commission is planning to increase rural development funding for the new member states, including Malta, as from 2007.

The plans were unveiled by Agriculture Commissioner Franz Fishler during a seminar organised by the Agriculture Directorate at the European Commission in Brussels yesterday.

Replying to questions by The Times, Mr Fishler said that in its review of the Rural Development Policy the Commission is proposing that there should be an increase in overall funding. The increase, which would amount to billions of euros over the next seven-year budget period, would be dedicated entirely to the requirements of the new member states, considered to be less economically advanced than the EU15.

Mr Fishler said the Commission was arguing that while the EU15 would still be receiving the current level of rural development funds, the allocation to the 10 new member states should be increased by some 25 per cent.

Despite the good news, Mr Fishler warned that no one should assume that the Commission's proposals will be approved. He said that "the battle about EU funds has just started.

When I listen to the rhetoric of some net payers, who seem to believe that one can better finance Europe with less money, then I get really worried about the fate of rural development. But, at the end of the day, it is the member states which have to decide whether they are serious about boosting sustainability in the EU".

In the current financial period (2000 - 2006) the EU dedicated €7 billion for the EU15. According to the Commission's proposal, the money available will be increased to €14.2 billion for a European Union of 27 (including Bulgaria and Romania) in the year 2013.

The total cost of the Maltese rural development programme until the end of 2006 is estimated to be €33.6 million, with 80 per cent of the funds coming directly from the EU's coffers. Most of the measures contemplated are specific to Malta, which means that this plan is not a standard one.

The measures include funding for investments carried out in agricultural holdings, investments in the marketing and processing of agri-food products, help towards the reduction of the incidence of soil erosion and complements to state-aid for compensation due to the removal of levies and assistance for restructuring.

In Malta, the number of persons engaged in agricultural activities stands at 14,113, of whom 1,524 are full-time and 12,589 are part-time workers.