The European Union, EU, has backed a plan to give 1 billion Euro ( $800 million) of unspent EU farm subsidies in aid to African farmers. The cash colud help farmers boost output, thereby tackling food shortages and soaring prices. Th money has remained unspent since it was allocated to the EU agriculture budget years back. If Eu ministers and the European Parliament agree, its disbursement to African farmers could take effects in early 2009.
Jose Barroso, EU president, noted that the impact of high food prices is particularly severe for the world’s poorest populations, and that without European help, United Nations goals to halve world poverty might fail, and tensions between countries in Africa over resources might intensify. On his part, Johannes Laitenberger, EU’S Spokesman, said the fund would be used to boost the supply of fertiliser and seeds for African farmers in order to help increase production over the next two years.
The EU’s vast agriculture budget eats up more than 40 per cent of its annual expenditure, and is worth about 120 billion euro. But rising food prices mean the EU has saved money on export subsides, leaving a surplus. At least eight EU member countries, including Britain, Sweden and the Netherlands, have questioned the legality of the scheme, though they have not challenged the merit of the idea.