02 December 1998
Germany and France at loggerheads over CAP
GERMANY and France believe they will need six months to sort out a dispute over the future financing of the European Union (EU) involving the common agricultural policy (CAP).
Germany wants to reduce its net contributions to the EU budget as part of a reform of the communitys finance. Brussels in turn is seeking radical reform of CAP, which would involve cutting EU subsidies to farmers by making up the difference from national budgets.
France is opposed to this reform.
France and Germany begun preliminary negotiations on the issue at their summit in Potsdam.