E.E.C. ACCORD

Press, Volume CXI, Issue 32566, 27 March 1971, Page 19

E.E.C. ACCORD

(N.Z.P.A.-Reuter—Copyright) BRUSSELS, March 26. Agreement has been reached on price increases and measures to reform European agriculture by the Ministers of the Common Market. European agriculture had thus made a great step forward, the French Agriculture Minister (Mr Michel Cointat), who presided at their meeting, said.

Price increases agreed on in the 13-hour session by the Ministers range from 1 per cem for maize to 10 per cent for beef (over two years), averaging out in total to a 5 per cent increase, which falls far short of the 15 per cent rises demanded by many of the farmers. The decision represented a

partial victory for Italy, which had refused to accept any price increases until the Ministers agreed at the same time to commit money for structural measures to modernise the Community’s inefficient farming system. In the early hours of this morning, the weary Ministers agreed to compromise on this issue, and earmarked about $1322m over the next four years for Community financing of farm projects. The attraction for Italy is that while the resolution provides for 25 per cent of modernisation projects to be paid for by the Community farm fund it allows this figure to go up to 65 per cent in backward regions, such as Southern Italy.

The fund will pay for four main projects to update farming in the Community, and these are basically divided into schemes for those farmers who want to leave the land and aid for those who wish to stay.