The EU is divided on CAP reform

EU member states are still divided over Commission proposals for further reform of the CAP, according to a Reuters press report on May 8th 2003, although diplomats maintained that the prospects for a deal had improved after many months of bickering and that some form of agreement now looked likely. Spain and France remained resistant to reform, while Germany, Britain, Denmark, Sweden and the Netherlands had offered broad support. There was speculation that any final compromise will most likely hinge on a last minute deal between France and Germany. This deal it was felt was likely to involve extensive recourse to 'partial de-coupling'. Comment: The European Commission has always been open to 'partial de-coupling' particularly where full de-coupling could adversely affect EU production. Much of the debate between member states has been over special treatment for preferred products where it is feared that de-coupling could result in production losses. All these deals are likely to mean that post-reform EU production levels will be higher than if the Commission's original proposals had been implemented. This could have important trade implications as higher volumes of lower-priced EU products become available.EU member states are still divided over Commission proposals for further reform..