Unspent EU farm aid to go to Africa - Barroso

The EU will channel €1billion in unused European farm subsidies to African farmers as part of its response to the global food crisis, the head of the EU executive said yesterday.

"The EU really can give a boost to agriculture in developing countries," European Commission President Jose Manuel Barroso said on the first day of a meeting of G8 rich nations' leaders in northern Japan, where soaring food prices are high on the agenda.

The EU executive has previously outlined its intention of taking up to €1 billion of unspent EU farm subsidies between now and the end of next year and using the money for a fund for seed and fertiliser and other agriculture projects in Africa.

That money will come on top of €550 million that the EU has freed up in emergency aid in response to the food crisis.

The new proposal will have to be approved by ministers from the EU's 27 countries and the European Parliament, and the new fund could begin operating from January, EU officials have said.

"A lot of things about Europe's agricultural policies are not great for Africa, but this is a really positive step," said Oliver Buston, a spokesman for the anti-poverty One Campaign.

"We hope it will encourage EU member states to raise their own commitment bilaterally and also encourage the rest of the G8 to do more."

Europe's Common Agricultural Policy eats up more than €40 billion a year in subsidies and other farm spending.

Some development campaigners have long criticised the EU's farm subsidies as damaging for poor countries unable to compete.

The World Bank has estimated that about €6.4 billion is needed in short-term aid to help poor countries face the global food and fuel price crisis.