9 June 1995

Illegal French aid hit

MEPs have attacked the European Commission for failing to stop illegal French state aid for pig producers.

Illegal subsidies are continuing, despite the commissions warning last July, said Liberal MEP Robin Teverson.

The subsidies on interest rates, worth £7.5m, undermine the pig market, the NFU warned in a statement sent to the commission.

Since 1993, the output of French pigmeat has grown twice as much as the EU average, despite their low feed price ratio, the NFU said.

They have significantly increased their market share in the EU and weakened UK producers competitive position, it added.

Farm Commissioner Franz Fischler said the commission was examining Frances response to the warning.

Commission officials added that they asked the French government to recover the aid by July 1 but so far they have not received any repayment. &#42