MEPs will vote on an emergency plan to help the crisis-stricken sector dairy sector on Thursday after the Agriculture Committee approved the Commission's proposal on Monday evening in Strasbourg.
MEPs will vote on an emergency plan to help the crisis-stricken sector dairy sector on Thursday after the Agriculture Committee approved the Commission's proposal on Monday evening in Strasbourg. Dairy prices have collapsed due to low demand caused by the financial and economic crisis. Since 2007, milk prices have halved in some countries. Parliament will discuss the plan to help farmers Tuesday evening.
Angry dairy farmers have deplored EU inaction over milk crisis. In recent months they have stepped up protests over the drop in dairy prices, pouring milk onto the streets and using cows and tractors to block roads.
German Green Martin Häusling said, "we need a quick solution. Next year it may already be too late."
How to help the farmers
On 17 September, Parliament said resources should be made available in response to the crisis and later demanded €300 million in direct aid for the most affected farmers.
EU Farm Commissioner Mariann Fischer Boel told the Agriculture Committee that the Commission, which manages Europe's Agriculture policy, has allocated €280 million, which was welcomed by most MEPs. German Christian Democrat Albert Dess welcomed the aid, but underlined that each country must be able to decide how it will be distributed
The Commission also wants to alter state aid rules to allow Member States to pay farmers up to €15,000, instead of €7,500, before the end of 2010, in line with the EP's request.
Portuguese Socialist Luis Manuel Capoulas Santos was "happy the Commission has eventually realised that more action is needed to help the sector, as we asked".
EP approves fast track measure
On Tuesday, MEPs agreed to fast track the dossier and is set to vote on the emergency plans Thursday.
The first aspect is to allow national governments to use money from surplus levies (usually paid to Brussels when national production thresholds are exceeded) to finance restructuring projects for the agriculture sector. The extra funds will be made available, the Commissioner explained, thanks to "a temporary stricter application of quota management."
The second part of the plan would allow the Commission to quickly adopt counter-measures in cases of serious market disturbances in the dairy sector.
British Liberal George Lyon warned the Agriculture Committee that "the measures can penalise more efficient producers." He said Parliament should reflect carefully before granting the Commission new powers. British Conservative James Nicholson said the plan is a short-term solution for a very long-term problem.