EU Ticks Off French Govt Over Announcing State Aid For Farms

European competition watchdogs Wednesday gave French President Nicolas Sarkozy a ticking-off for announcing a flood of money for its farmers without first informing Brussels.

A European Commission spokesman said it was waiting for “more precise information” on the plan for EUR650 million in aid and EUR1 billion in cheap loans, announced to the media Tuesday.

Brussels “is waiting for notification,” said commission spokesman Johannes Laitenberger, adding it is “customary” to do so first although he also admitted “there is no rule that obliges” states to respect that convention.

France is the European Union’s biggest agricultural producer and farming employs 770,000 people, but the heavily state-supported sector is reeling from a 15% collapse in prices over the past year.

France is also the biggest beneficiary of the EU’s massive farm subsidy system, the Common Agricultural Policy, receiving EUR10 billion last year, ahead of Spain with EUR7.1 billion and Germany with EUR6.6 billion.

Source: CME Group