06 January 1999
Germans wrestle with CAP reform

THE German Government is wrestling with a difficult political problem over reform of the common agricultural policy (CAP), according to an editorial in the Financial Times.

Reform will mean cuts in subsidy to Germanys farming sector, a powerful lobby.

The German Government wants to cut its net contribution to the European budget but the paper advises it will have to take the tough decision and cut domestic farm subsidies too.