EU farm ministers mull farm subsidy reforms

As thousands of farmers protested vehemently outside, European Union agriculture ministers mulled changes Wednesday to the EU's euro53 billion ($67 billion) farm support program.

The EU spends about 40 percent of its budget supporting 13 million farmers who make up less than 3 percent of its population. Yet the farm ministers in the 27-nation bloc are under strong pressure from lawmakers and farmers who want continued aid and subsidies.

Ministers were discussing proposals from the EU's executive office to move the farm program away from direct handouts to farmers by diverting cash to projects promoting rural development, food quality and environmental protection.

In front of EU headquarters, several thousand tobacco producers from France, Poland, Greece and Spain demanded more protection for their threatened sector. And in Greece, tobacco farmers blocked two highways to protest planned cuts in crop subsidies.

The European Parliament voted Wednesday to back proposals aimed at shielding farmers from the impact of the proposed subsidy cuts. EU lawmakers - meeting in Strasbourg, France - said some subsidies linked to food production should be maintained, including special support for milk and livestock farmers.

With governments going into the talks divided, officials said they expected a compromise Thursday that would reflect some of the parliament's concerns.

EU Farm Commissioner Mariann Fischer Boel is pushing for further reforms, while France, which chairs the minister's meeting, seeking to safeguard the current interests of farmers.

During negotiations at the World Trade Organization, the EU has often come under pressure because of its subsidy schemes to farmers and has been forced into gradual change.

The EU has shifted away from subsidies directly linked to production, which was seen as a cause of past surplus production and a distorting factor on world markets.

"We must not go backwards, because we are in a good position when it comes to the WTO," said British lawmaker Neil Parish, who chairs the EU parliament's agriculture committee.

The Greens in the EU assembly criticized Wednesday's vote and said more change was necessary.

"This is a victory for the agro-industry lobby, which has succeeded in maintaining the status quo of subsidies with minimal strings attached," said Green lawmaker Friedrich-Wilhelm Graefe.