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Polish EU negotiators wary of EC proposal for farm restructuring fund

The European Commission (EC) will likely propose the creation of a special fund to aid farm restructuring in EU accession candidate countries. Polish EU negotiators are skeptical about the plan, which was designed as compensation for lower than expected direct farming subsidies. In 1998, EU countries set aside euro 43 billion for direct farming subsidies for new member countries for the years 2000 to 2006, but they are now looking to lower that amount to approximately euro 32 billion, while at the same time creating the restructuring fund. However, accession negotiators are wary of the idea, noting that while direct subsidies are automatically granted to farmers who sell goods on the market, EU aid funds are difficult to obtain. They require detailed investment plans, and Poland has already experienced great difficulties in obtaining aid from the EU's SAPARD fund. The fund was to be launched in 2000, with Poland to receive euro 170 million a year, but due to administrative difficulties Poland is yet to receive a single euro. (Rzeczpospolita, p. B3) T.J.

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