31 March 1995

Price cuts rejected

THE council has rejected further price cuts this year.

Ten member states opposed any further cuts in CAP support. They rejected the proposed 2% cut in butter intervention prices, the 10% reduction in monthly cereal storage aid and shortening the cereal intervention period.

But Denmark and Sweden demanded deeper price cuts for the 1995/96 marketing year. The UK said it could accept the proposals as they stand.

Commission officials insisted that a 2% butter price cut was needed if the EU was to remain competitive but added that a compromise was likely to be reached in May when the 1995/96 price package was due to be adopted.

But ministers were close to adopting the commissions sugar reform proposals, which generally roll over existing rules. &#42

Amanda Cheesley