24 April 1998
British farmers face subsidy loss

THE four countries not taking part in the introduction of the Euro on 1 January could have their farm subsidies cut by at least 11.5% unless the currency system covering those four countries is changed, analysts have warned.

British farmers stand to lose 11.5% in subsidy payments under the Common Agriculture Policy (CAP) – because of the system covering the four non-starters – even if there are no new revaluations of the Green Pound before the end of the year.

The Scotsman says UK agriculture stands to lose hundred of millions of pounds in subsidy payments unless either a transition period can be negotiated and reductions are phased in more gently. The situation could also rectify itself if Sterling suddenly weakens against the Ecu and cuts are softened that way.

The European Commission is expected to present its proposals for new green currency arrangements before the end of June.

  • The Scotsman 24/04/98 page 30