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Partial Agreement on EU National Farming Subsidies

Partial agreement on continuation of national farming subsidies has been reached in talks between Finland and the EU in Brussels on Thursday.

Agreement has been reached on the structure of agricultural subsidies but no deal is yet on the table with regard to the length of the subsidies and their gradual reduction.

Both sides have, however, agreed that 93.9 million euros in national farm subsidies will be paid next year. Negotiations on future subsidies will continue next week.

EU Agricultural Commissioner Marian Fischer Boel earlier called for Finland to submit proposals acceptable to other EU members. However, Minister of Agriculture Sirkka-Liisa Anttila has made it clear that the question is matter between Finland and the Commission.

However, she hoped Finland's clarified proposals submitted prior to Thursday's talks would satisfy the Commission. Anttila said they were based on earlier proposals submitted last summer but contained certain clarifications. She added Finland had tried to meet the Commission half-way and that the proposal was in line with the EU common agriculture policy.

Finland Aims for Seven Year Deal Finnish proposals aim for the right to give national farming subsidies totalling 94 million euros annually until the year 2014. At least next year, this goal appears to have been achieved in Thursday's talks. In addition, the ministry and the Central Union of Agricultural producers (MTK) hope for a 35 million euro refund in agriculture development funds where Finland remains the sole contributor. In this case, the support package would total some 129 million euros annually. National farm subsidies are based on article 141 of the Finnish-EU Accession Treaty and are paid to dairy, pig and poultry farmers in southern Finland. They are designated as subsidies for farmers in difficult areas. Initially the subsidies were intended to be paid for a transitional period which terminates at the end of this year. Northern Finland has a permanent right to subsidies under Article 142 of the treaty. EU: Other Members Must Approve The major bone of contention between the EU and Finland is whether the subsidies are temporary or not. Agricultural Commissioner Marian Fischer Boel said on Tuesday that a negotiated agreement must be acceptable to other members. She considers the subsidies as a temporary measure. This view, however, is totally unacceptable to the Central Union of Finnish Agricultural Producers (MTK). YLE