EUROPEAN UNION
EU farm chief refuses subsidy extensions

Mariann Fischer Boel, Europe’s agriculture commissioner, has declined  demands to extend subsidies for tobacco growers as part of this week's farm reform talks.

"Tobacco is not in the health check," Fischer Boel told the European Parliament, referring to her blueprint for a mini-reform of EU farm policy that EU ministers will begin negotiating on Wednesday.
Eight EU tobacco-producing  countries – Italy, France, Greece, Spain, Bulgaria, Poland, Romania and Hungary –  earlier said they want existing subsidies extended to 2013, arguing that otherwise there would be a social impact on thousands of people employed in the sector.
After refusing to reopen the tobacco reform, Fischer Boel said there might well be other ways within her "health check" of farm policy to mitigate the worst effects of tobacco subsidy decoupling.
"I am sure we can create solutions that will soften the consequences of the decisions already taken for the tobacco producers," she said in her address to the European Parliament.
The 2004 reform will see subsidies for tobacco growers fully decoupled from production amounts starting in 2010. Half of the total payments will be shifted into a restructuring fund to help farmers improve yields or switch to other crops.
Several thousands of tobacco farmers, mainly from France, are expected to hold protests in Brussels on Wednesday. (pi)

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