Row over EU agricultural subsidies appears to be settled

Prime Minister Leszek Miller said yesterday, the government had reached agreement on EU subsidies to be paid to farmers, calming a row which threatened to split the coalition ahead of this year's membership referendum. The Cabinet had approved a system for awarding farm subsidies which was backed by Brussels, but had been questioned by the Polish Peasants Party (PSL). According to the new agreement, farmers will get subsidies determined mostly by the size of their farms. "The Cabinet has accepted this interpretation of direct payments," Miller told a news conference. The deal was reached after Polish farm negotiator Jerzy Plewa won some concessions in last minute talks in Brussels this week on how to implement the EU's Common Agricultural Policy after Poland's accession. "Today, after the Cabinet meeting, I can repeat that the results of our negotiations are good, which gives the economy and farming a chance," said PSL leader and Agriculture Minister Jaroslaw Kalinowski. (Rzeczpopsolita, pp. A1, B2; Reuters) M.M.