Tackling rural poverty, together

Extract

The European Commission has adopted on 18 July 2008 a proposal to establish an European Food Facility with the following characteristics :

• an ad-hoc instrument for short-term response to soaring food prices in developing countries established by a Community Regulation, requiring approval by Council and Parliament
• the instrument will be operational in 2008 and 2009
• it will use part of the unused margins of Heading 2 (Agricultural budget) of the Community budget
• proposed amount: €1 billion, € 750 million from the 2008 budget; € 250 million from the 2009 budget.
• primary objective of cooperation under this Instrument is to encourage a positive supply response of farmers and to support other activities to respond rapidly and directly to mitigate the negative effects of high food prices;
• Assistance targeted to developing countries that are negatively affected by the food price crisis and which do not have the financial capacity to respond;
• Implemented through international and regional organisations, the following measures could be supported through the Instrument:

(a) measures to improve access to agricultural inputs and services, including fertilizers and seeds;

(b) safety net measures aiming at maintaining or improving the agricultural productive capacity, and at addressing the basic food needs of the most vulnerable populations .

• Quick mobilisation of finance is needed to be able to react in 2008 and 2009, hence fast-track procedures are proposed.

The proposal will follow a co-decision procedure and is expected to be adopted by Council and parliament in late November 2008.