SHARE
COPY LINK

FARMING

EU tells Sweden to repay farm subsidy

Sweden has been told by the European Union to repay 870 million kronor (€94 million, $127 million) in agricultural subsidies, a third of which will be paid by farmers, an industry body said Thursday.

EU tells Sweden to repay farm subsidy

Swedish farmers received the aid for their pastures between 2005 and 2007 after the EU introduced a new type of subsidy called “single farm payment”, agronomist Lars-Erik Lundkvist of the Federation of Swedish Farmers (Lantbrukarnas riksförbund – LRF) told AFP.

But the criteria to qualify for the aid were confusing, primarily because of “an unclear definition of what constitutes pasture”, Lundkvist said.

As the Swedish government interpreted the regulations differently than the EU Commission, farmers received money to which they were not entitled.

The dispute was mainly between the government and the commission so the state will repay the majority of the funds, but around 10,000 farmers will have to dish out about 300 million kronor.

“We think that sounds like a lot of money,” Lundkvist told AFP.

He said some of the farmers may appeal the decision.

Sweden received a total of €947 million in EU farm subsidies in 2008, approximately €12,977 per farm.

Among the top regional recipients were Skåne with €173 million, Västra Götaland with €147 million, and Östergötland on €71 million.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

POLITICS

France vows to block EU-South America trade deal in current form

France has vowed to prevent a trade deal between the European Union and the South American Mercosur bloc from being signed with its current terms, as the country is rocked by farmer protests.

France vows to block EU-South America trade deal in current form

The trade deal, which would include agricultural powers Argentina and Brazil, is among a litany of complaints by farmers in France and elsewhere in Europe who have been blocking roads to demand better conditions for their sector.

They fear it would further depress their produce prices amid increased competition from exporting nations that are not bound by strict and costly EU environmental laws.

READ ALSO Should I cancel my trip to France because of farmers’ protests?

“This Mercosur deal, as it stands, is not good for our farmers. It cannot be signed as is, it won’t be signed as is,” Economy Minister Bruno Le Maire told broadcasters CNews and Europe 1.

The European Commission acknowledged on Tuesday that the conditions to conclude the deal with Mercosur, which also includes Paraguay and Uruguay, “are not quite there yet”.

The talks, however, are continuing, the commission said.

READ ALSO 5 minutes to understand French farmer protests

President Emmanuel Macron said Tuesday that France opposes the deal because it “doesn’t make Mercosur farmers and companies abide by the same rules as ours”.

The EU and the South American nations have been negotiating since 2000.

The contours of a deal were agreed in 2019, but a final version still needs to be ratified.

The accord aims to cut import tariffs on – mostly European – industrial and pharmaceutical goods, and on agricultural products.

SHOW COMMENTS