EC FARM CRISIS LIKELY TO GO TO END-JUNE SUMMIT
Plans for key reforms of the European
Community's (EC) controversial farm policy will almost
certainly have to be referred to the bloc's heads of government
at a summit meeting on June 29 and 30, Belgian finance minister
Mark Eyskens said today.
    Eyskens was speaking at a news conference after chairing a
joint meeting of EC finance and agriculture ministers which was
designed to help break a deadlock over this year's EC farm
price package which has endured since March.
    Diplomats quoted EC Executive Commission president Jacques
Delors as saying at the same meeting that it would be a
disaster if the two most difficult issues at the farm talks had
to be referred to heads of government.
    These issues are a Commission plan for a tax on marine and
vegetable fats and oils, and proposals to change the system by
which EC farm prices, expressed in European currency units
(Ecus), are translated into the currencies of member states.
    The oils and fats tax is opposed by a group of countries
which fears it could provoke trade retaliation by the U.S., A
major exporter of soybeans to the EC.
    West Germany, meanwhile, is strongly against the technical
currency move, which would result in additional price cuts for
farmers in countries with strong currencies, such as the mark.
    Commission sources said Delors is anxious that the two
issues are not referred to the summit because this would mean
heads of government diverting their attention from much more
important world and Community issues.
    Eyskens said decisions from heads of government were also
likely to be less sound since they do not usually interest
themselves in such technically complex questions.
    However, Eyskens said today's meeting had thrown up some
nuances in member state positions "which may make the dialogue
more constructive in the next few weeks."
    If farm prices are not decided by the end of this month,
the Commission could use its own powers to impose a seven pct
cut in cereals prices, farm trade sources said. It originally
proposed measures to cut farm spending by 1.1 billion Ecus this
year, with effective price cuts of over 10 pct for some crops.
    Diplomats said farm ministers might be able to agree a
price package cutting spending by around 340 mln Ecus but for
their disagreements on the oils/fats tax and on currency
reforms.
    The finance ministers were called in to emphasise the need
for budgetary restraint in the face of an almost certain EC
budget deficit of over five billion Ecus this year.
    Although Delors was said by aides to have found today's
meeting very useful, diplomats said there was little sign of a
major shift in the position of member states, or of finance
ministers adopting a different line from that of their
agriculture colleagues.
    The farm ministers are expected to meet for most of this
week in Luxembourg in a pre-summit attempt to bridge their
differences.
 REUTER
