EC lifts forecasts for CAP spending
THE European Commission has been forced to lift its 1999 spending forecasts for the Common Agricultural Policy by more than Ecu500 million (£357m) because of falling farm prices.
The Commission estimates that the European Unions arable sector will need an extra Ecu1bn on top of forecasts drawn up in April, while sugar will need an extra Ecu236m and pigmeat Ecu77m.
But the commission is making savings on milk products of Ecu237m and beef and veal (Ecu208m).
It says the 6% increase in the estimate of cereals is concentrated on traditional market support expenditure of export refunds, public storage and production aid for starch and potato flour.
The pigmeat sector rise is blamed on a “serious crisis” that has followed over-production prompted by an outbreak of swine fever.
The sugar increase results from historically low prices in that sector.
- Financial Times 06/11/98 page 34