EU to introduce new common agricultural policy

A total of 10 European Union (EU) member states are to introduce the fundamental reform of the Common Agricultural Policy from Jan. 1, 2005.

According to the EU executive European Commission, the reform completely changes the way the EU supports its farm sector and most subsidies will be paid independently from the volume of production.

These new "single farm payments", or single payment scheme (SPS), will be closely linked to the respect of environmental, food safety and animal welfare standards.

"Severing the link between subsidies and production will make EU farmers more competitive and market orientated, while providing the necessary income stability," said a press release of the Commission.

More money will be available to farmers for environmental, quality or animal welfare programs by reducing direct payments for bigger farms.

"The changes will give consumers what they want, offer taxpayers more transparency and contribute towards more market-orientated world farm trade," said the release.

The 25 EU member States had the possibility to apply the SPS between 2005 and 2007. Ten member states, named Austria, Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Portugal, Sweden and the United Kingdom, decided to start from next year.

The five other "old" member States will apply the SPS in 2006 while the two "new" member states, Malta and Slovenia, opted for starting the SPS in 2007.

However, the eight other new member states will apply the SPS from 2009 at the latest.

Source: Xinhua