EU executive endorses farm aid plan for Africa

Brussels: The European Commission backed a plan on Friday to give 1bn euros to farmers in Africa next year to help tackle high food prices and boost output, despite opposition by many EU states.

18 Jul 2008

The EU cash, largely the result of underspending and leeway in the bloc's massive agriculture budget, comprises 750m euros earmarked for 2008 and the remainder for 2009. This year's amount could be given retrospectively from mid-June.

At least eight EU member countries, including Britain, Sweden and the Netherlands, have questioned the legality of the scheme but have not challenged the merit of the idea.

EU ministers and the European Parliament, which has also voiced doubts about using unspent EU farm funds, will have to agree to the plan before it can enter into force. The Commission would like cash to start flowing in early January 2009.

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