EC seeks to cut agriculture subsidies and invest in rural infrastructure

On Wednesday, the European Commission will propose to EU countries a 20% reduction in direct farming subsidies on grain, beef or rape seed, to be attained over a transition period of six to seven years. The money saved would be spent on supporting the development of rural areas - investments in infrastructure and restructuring production. In addition, the system of subsidies would be greatly simplified and money would be paid to farmers regardless of what they produce and how much. These changes have two main objectives - one is to allow for incorporating new EU members, such as Poland, into the Common Agricultural Policy (CAP) without greatly increasing the financial burden on member countries. The second is to move away from an industrial system of farming which promotes higher output, regardless of the consequences for quality and the environment. Poland would benefit from the proposed promotion of safe, environmentally-friendly farming, but it could lose out on the proposed cuts in subsidies. The changes would mean tra nsferring part of the burden of financing farming onto the national budgets of EU members. (Gazeta Wyborcza, July 6-7, p. 23) T.J.