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18/01/2008

Germany Challenges EU Subsidies as Agriculture Show Opens



As Europe's biggest farm produce trade fair opens in Berlin, Germany set an altogether different stall out when its agriculture minister squared up to the European Union over plans to scrap outdated farm subsidies.

Speaking before the International Green Week opened in the German capital Friday, Horst Seehofer announced he was spoiling for a fight over the EU commissioner for agriculture's planned changes to the Common Agricultural Policy (CAP).

Seehofer said that he was against the ground rules for EU subsidies being altered every year.

Germany, as the primary funder of the CAP, is concerned that huge farms formed during the communist period in the east of the country would be hit if a maximum limit is applied to direct grants to farm enterprises.

The European Commission is considering capping payments to the largest farms, increasing the minimum amount of land a farmer has to own to qualify for payments, and imposing tighter environmental rules on farmers as part of its so-called "health check" on the CAP.




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