November 2, 2009
France offers agriculture sector US$2.4 billion in aid
French president Nicolas Sarkozy has offered French farmers a EUR1.65 billion (US$2.4 billion) of aid package to help them through the financial crisis.
Retail prices dropped by just one percent over the past 12 months, but agricultural prices suffered a 20-percent drop.
The crisis has affected all farming sectors and the government's response was to put in place a financial rescue package for agriculture, according to the president.
The package will include EUR1 billion in government-subsidised bank loans, with interest set at 1.5 percent for five years, and EUR650 million of state aids.
This would include EUR200 million to reduce interest payments on existing loans; EUR50 million to cover some farmers' social security payments; EUR170 million in rebates on fuel and gas taxes; EUR120 million to partly reimburse the new carbon tax; and EUR170 to offset national insurance payments for seasonal farm workers.
The package is subject to EU approval, but Sarkosy is confident there would be no problems.
A spokesman for the European Commission said the formal notice of the aid package had not been received, saying that the Commission was only aware of the package through media reports.
US$1 = EUR0.677556 (Nov 2)
