Farmers face EU payments problems as talks break down
Until member states agree on the funding of the EU, the European Commission can spend only one-twelfth of the 2010 budget each month, from January 1 next. The last time this happened was in 1988. One of the payments to member states hit by this restriction is a refund of advance single farm payments – which were received by farmers in Ireland recently.
“Because of the budget impasse, the Commission is warning that while it needs to refund € 30 billion to member states for advance payments made, it can now only refund € 6 billion, leaving member states with a € 24 billion shortfall,” said Ms McGuinness. “It is imperative that this matter is resolved as member states, including Ireland, have very difficult financial situations requiring payments on time from a national budget perspective,” she said.
Negotiations between the European Parliament and the EU’s 27 finance ministers collapsed at midnight on Monday over Britain and the Netherlands insisting on greater austerity in the EU budget, in line with spending cuts introduced in most EU countries.
EU Budget Commissioner Janusz Lewandowski has also warned that major payments under the Common Agricultural Policy (CAP) in January and February are jeopardised by budget negotiation delays.
