EU initiative could cut farm subsidies

07 October 1998

EU initiative could cut farm subsidies

BRUSSELS plans to open the books on how much each member state contributes to the European Union (EU) budget.

But the move could provoke a storm of protest from some countries.

One idea to reduce these contributions would involve returning to the jurisdiction of member states 25% of the income subsidies paid out in the European Union farm budget.

This would reduce the degree of cross-subsidy from state to state in the farm subsidies.

This plan is likely to be opposed by countries such as France, Ireland and Spain, which currently benefit.

• Financial Times 07/10/98 page 24