In a previous post, we reported that the French government had made illegal payments for ten years to fruit and vegetable farmers, and the European Commission was requiring the French farmers to repay the French government $709 million. For previous post, click here. This ruling has not set well with the French farmers according to a recent article by Paul Taylor in the New York Times. Click here to read the article.
The farmers revolted on this news, and dumping truck-load of potatoes outside a government offices. The revolt caused the agricultural minister, Bruno Le Maire, to vow “to negotiate to lower the sum to be repaid and to appeal to the European Court of Justice and, yes, he promised fruit and vegetable growers new subsidies in compensation.” But his offers have been dismissed by farmers.
This problem also highlights potential problems in next year’s negotiations to reform the E.U.’s Common Agricultural Policy. This illegal payments made to keep farmers from revolting could drive a wedge between France and her traditional allies in the E.U., such as Spain, Italy, Portugal, and Greece. It also provides ammunition to countries wanted to move farm spending away from subsidies and direct it towards research and innovation in the renewable energy sector.
Posted: 08/13/09
