Sarkozy ready to accept CAP budget cuts

FRENCH president Nicolas Sarkozy is ready to accept cuts in EU farm spending - but only if Europe’s farmers are given more protection against imports.

During a debate at an agricultural show in Paris on Saturday (March 6) Mr Sarkozy said imports should be subject to the same standards of production as those adhered to by EU farmers.

Only then would there be ‘fair competition’ he said.

France is the largest beneficiary of CAP money and has lead the fight to maintain EU payments in the past.

In December Bruno Le Maire, French Agriculture Minister, hosted a meeting attended by 21 other European nations - with the notable exception of Britain - to defend the agricultural budget beyond 2013.

But Mr Sarkozy has now indicated a shift in thinking.

“I am ready to accept reducing the share of agricultural spending in the EU budget provided that we use community preference,” said Mr Sarkozy, referring to the high standard of environmental and welfare rules adhered to by European producers.

He said European farmers would be able to compete on price if third country producers had to compete on standards of production.

Mr Sarkozy also expressed his desire to strengthen market regulation tools to reduce price volatility.

His comments came as he announced an extension to the whopping €1.65 billion (£1.5bn) payout last November to help his farmers deal with the economic downturn.

That announcement came after angry French farmers protested on the Champs Elysees about the state of the industry - a further demonstration of the political power held in the French countryside.

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