European Union-Intervention.

EUROPEAN UNION-EU to reduce intervention in agricultural markets

The European Parliament recently released its adopted budget for the European Union for the 2009-10 financial year. The budget commits €54,834 million (A$10.2 billion) to agriculture and rural development – a 2% increase on the previous financial year budget. While more of these funds will be spent on direct aids and rural development, expenditure on intervention (including refunds, aid for storage and exceptional support measures) in agricultural markets has been reduced by 15%.

Reduced spending relative to last years expenditure is expected on beef export refunds and exceptional support measures, however, more is anticipated to be spent supporting the pork industry (including export refunds and intervention such as aids to private storage). Direct aid spending to support the sheep and goat industry is expected to fall 5%, reflecting the contraction in the EU breeding flock (EU Market Survey).