french growers and farmers are to benefit from a €1.65 billion (£1.49bn) aid package announced by President Sarkozy last week.
However, while grower leaders say the proposals do not go far enough for them, the European Commission is examining whether the handouts are a breach of competition rules.
Under the aid deal, Sarkozy has promised €650 million in government aid and a further €1bn in low-interest loans. He said the gap in retail prices and those paid to producers was putting French food production in danger.
Emanuel Demange, director of French fruit growers’ federation FNPF, told freshinfo: “The president’s aid package may help some growers but for most, the €1bn loans offer is not accessible: fruit growers are already very indebted, many cannot make the payments they have to already and the banks simply will not lend any more. [Sarkozy] has responded with classic measures faced with an emergency situation, which unfortunately do not address the root of the problem.”
Representatives from FNPF and its sister body representing vegetable growers - Légumes de France - are meeting this week with officials at the ministry of agriculture to press home their points. Of particular concern is the fact that an hour of labour costs French growers €12, whereas in other European countries this cost can be as low as €6.
