Big Two back CAP reform

AS the crucial CAP reform negotiations resumed in Luxembourg this week, France and Germany agreed to seek a watered down version of the radical proposals.

German Chancellor Gerhard Schröder and French President Jacques Chirac said they would back a partial decoupling of aid for farmers linked to production from 2006 onwards.

France is the biggest beneficiary of the CAP’s eu €45 billion annual budget and Germany contributes the lion’s share of funds. Berlin apparently agreed to support France on CAP reform in return for French backing of German opposition to EU plans for a takeover code.