EU allocates €26.9m to Malta for rural development

The European Commission has allocated €26.9 million to Malta for rural development purposes for the period 2004-2006.

Malta has been given the lowest amount of funding after the EU decided to fix EU funding for the rural development for the new member states at €5.76 billion in current prices for 2004-2006.

The allocations for each new member state are based on the amounts contained in the declaration included in the act of accession. They have now been converted from 1999 prices to current prices.

During the accession negotiations, it was agreed to allocate an envelope of €5.11 billion (at 1999 prices) out of the EU agricultural budget to finance rural development measures for the 10 new member states for the period 2004-2006.

"This decision is further confirmation that substantial amounts of EU money will be invested in targeted and tailor-made rural development programmes. These funds will help farmers in the new member states to modernise, restructure and meet EU production standards. They will also contribute to socially and ecologically sustainable development in rural areas," Franz Fischler, Commissioner for Agriculture, Rural Development and Fisheries, said.

From accession a wide range of rural development measures will be co-financed at a maximum rate of 80 per cent by the EU in order to tackle structural and environmental problems in the rural areas of the new member states.

In Objective 1 regions, the rural development measures that will be eligible for guarantee-funded support (maximum 80 per cent EU financed) include early retirement of farmers, support for less favoured areas or areas with environmental restrictions, agri-environment and animal welfare schemes, afforestation of agricultural land, support for semi-subsistence farms undergoing restructuring, setting up of producer groups, technical assistance, support to assist farmers to meet EU standards and food quality schemes.

In Malta's case, a temporary income support scheme to help full-time farmers adapt to changes in the market environment is also eligible for inclusion in the guarantee-funded rural development programme.

Within Objective 1 regions additional rural development measures will be financed from the structural funds. In other areas, the full range of rural development measures may be supported using guarantee funds.