Greek farmers are preparing for a future in the E.E.C.

Press, 11 September 1980, Page 14

Greek farmers are preparing for a future in the E.E.C.

By

J. W. MURRAY

on Crete

Aristotle said: “Wine makes everyone hopeful,” but Greek farmers are taking a fairly sober view of their prospects ‘ after New Year’s Day (January 1, 1981) when their country becomes the tenth member of the European Economic Community. They will, for the first time, have guaranteed minimum prices and reasonable assurance that European countries will not ban imports of Greek products at the height of the season. They fear, however, that they will lose the many national aids and subsidies they now enjoy.

There is an old saying that two Greeks and one subject make an argument and the subject in agricultural circles at the moment is: what is a fanner? The answer is important because not only will tile amount of aid available from E.E.C. funds depend upon the numi bers employed on" the land, but “farmer” and “farmworkers” are exempt from income tax. • Nikolaos has two stremas-(one-tenth of a hectare) of cucumbers under plastic greenhouses: in the central - valley of Crete below the Minoan palace of Phaistos. . I-Ie built and ■ irrigated his . greenhouses with a loan from the Agricultural Bank at half the commercial rate of interest (a facility 'which will have to disapnear under the rules of the E.E.C.). His annual State subsidy- for fertilisers will also have, to go. He is, however, undoubtedly a professional farmer and free of income tax. In the busy times, when Nikolaos- is sowing his cu-

cumbers in the autumn and harvesting them in the winter and spring, hordes of cousins and other relatives come to help. Most of them have other jobs for most of the year but classify themselves as “self-employed farmworkers” for the benefit of tax exemption. Dimitrios has three plastic greenhouses under which he grows carnations for marketing through a co-oper-ative to E.E.C. countries. Two of his plastic houses are in a large plot near Iraklion, the capital of Crete. The whole area of about a hectare is covered with 'similar greenhouses growing carnations and owned by his relatives.

Both Nikolaos and Dimitrios hope that Greece’s entry into the Common Market will ensure a permanent and profitable market for their produce, but they are not certain whether, when the E.E.C. import duties are reduced, they will gain or the merchants will -take the additional profit. There was no doubt that these were real working farmers, although' perhaps not full-time because there is not sufficient work to occupy them all the year round. There are many others who work their own strips of land for a few months of the year, especially in the olive groves which need little attention except at harvest, or on their' relatives’ holdings, and who have other work in the towns. ■ Many of the waiters and chambermaids in the tourist hotels work on the land when the tourists have gone. Greece’s main agricultural

surpluses for export do not compete with the production of the present nine E.E.C. countries: tobacco, cotton, currants and oranges. Her olive oil and wine will add a little.to the ‘lakes’ of Brussels. But Greece’s peaches and tomatoes, which could flood the Community because of her unrivalled sunshine, will only gradually be allowed Access into the E.E.C. over seven years because of the insistence of France and Italy in the negotiations. On the other hand, Greece could absorb some of the E.E.C. surpluses of dairy products and meat, in which she is not self-sufficient. The country is unsuitable for cattle raising beca -a grass does not grow well in the long dry summer and so it imports milk, butter, beef and veal, and, surprisingly, lamb. The terrain would be suitable for the expansion of sheep production but they say it is difficult to find people who will accept the slavery of being shepherds, staying continuously with their flocks because they are pastured on unenclosed land. ' If, as expected, the drachma is devalued as the currency becomes decontrolled, Greek exports will become cheaper and more competitive in world markets and especially the E.E.C. where they will have the benefit of gradually reducing import duties over the five-year transitional period. But her imports will become dearer, offsetting the reduction in duties and E.E.C. export subsidies. The- Greek farmers and exporters do not expect a bonanza from E.E.C. membership in- the early years

and recognise that later they may suffer competition from Spain and Portugal. But they believe they can earn a good living, providing northern Europe with out-of-season high quality fruit and vegetables and flowers, as well as increasing tourism. Even more important, they believe that membership of the E.E.C. is a necessary safeguard of their freedom. — Copyright, London Observer Service.