Luxembourg, June 26: EU farm ministers struck an "historic" accord today to reform the bloc's disputed common agricultural policy (CAP), in a move they said will strengthen the EU's hand in WTO talks. Reform of the cap, which swallows nearly half of the 15-member European Union's annual budget, had been stalled notably by France, the main beneficiary of its generous subsidies.
"It is a historic decision," said Greek agriculture minister Georgios Drys, whose country currently holds the rotating EU presidency, after the accord was hammered out in Luxembourg.
The main plank of the reform severs most of the link between farmers' production levels and their subsidies from 2005 and redirects part of the subsidies to rural development.
The EU minister trumpetted their agreement as a boon to farmers at home and beyond in the developing world -- and will also strengthen the EU's hand at World Trade Organisation (WTO) talks on international trade reform.

Bureau Report