The EU Commission tried in 1992 and again in 1997 to cut -- or at least to loosen -- the link between farmer subsidies and surplus production. On both occasions the EU member governments watered down the proposals considerably.
As a result the subsidies now cost € 41bn each year (about $40 billion), or half the EU's total budget. The production pressures on farmers who depend on the subsidies are leading to ever more intensive and less safe farming practices. Consumers are blaming the subsidies for BSE ('mad cow disease'), foot-and-mouth disease and a host of other food safety and animal welfare emergencies.
It may be the budget that breaks first: with 5 East European countries due to join the EU in 2 years time, the budget can no longer bear the strain. Franz Fischler, the EU Agriculture Commissioner, is about to try a third dose of reform.
" On July 10, Franz Fischler, the European commissioner in charge of agriculture, unveils his mid-term review of the Agenda 2000 CAP agreement. In broad terms (the detail is mind-bogglingly complex) he is calling for a 20% shift away from product support to rural development over six to seven years."
5:19:16 PM 
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