# CE2004078EN.01089201.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/892 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/892

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(2004/C 78 E/0943)

WRITTEN QUESTION P-4009/03

by Antonio Di Pietro (ELDR) to the Commission

(22 December 2003)

Subject:   Reform of the tobacco CMO

Subject:

Under the draft revision of the Common Market Organisation (CMO) in tobacco, the Commission has made provision for Europe to progressively abandon the production of tobacco on its territory.

Specifically, the proposal envisages that from 2005 there will be a drastic revision of the aid system, which will lead in 2007 to the abolition of the Community fund for tobacco.

While concerns regarding the very serious public health problems caused by tobacco are understandable, it should be noted that dismantling this productive sector will have dramatic implications for at least 110 000 families of European agricultural workers, 400 000 seasonal jobs and 30 000 jobs in the processing industry.

Has the Commission made provision for appropriate social safety valves to safeguard the jobs of workers in this sector? Would it be possible to maintain at least a partial link between aid and production?

Without compromising the wish to combat cigarette addiction effectively, particularly among the young, does the Commission not believe that — since Europe already imports 80 % of its tobacco requirements from non-EU countries — even were it to import 100 %, this would change nothing with regard to the vital battle against tobacco consumption?

Answer given by Mr Fischler on behalf of the Commission

(30 January 2004)

(30 January 2004)

The proposal for a reform of the raw tobacco sector implies that the product-specific support to tobacco will be replaced by an income support to producers as in the June 2003 Common Agricultural Policy (CAP) reform, and that the majority of the raw tobacco producers will continue to receive the same support as they receive today without being bound to produce tobacco.

The Community Tobacco Fund will be abolished as from 2007 because the financing of this fund is linked to the product-specific support which disappears, but the global budget for the tobacco sector will remain the same, and the part which is not paid to the producers as coupled or decoupled payments will be transferred to a financial envelope which shall be used in the Member States where the funds contributing to the envelope are collected. The funds in the envelope shall be administered according to the rural development legislation and will contribute to improvements of the infrastructure in the tobacco producing regions and to support producers who want to shift to other products or to other economic activities.

The funding in the Community Tobacco Fund used for reconversion, etc. amounts only to approximately EUR 14 million in 2004, while the funding in the financial envelope from 2007 onwards will amount to EUR 205 million.

The increased funding for improvements of the infrastructure and support of the producers shift to other products or other economic activities should ensure that the economic situation for the producers and workers in the tobacco producing regions will not have the dramatic implications evoked by the Honourable Member.

As concerns the question on the fight against tobacco addiction, it can be said that, while the removal of product related subsidies may not directly influence the short term prevalence of smoking, as was the finding of the Commission Extended Impact Assessment report, it is clear that a better coherence with public health policies is essential to maintain the confidence and trust of Union citizens.

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