Romania’s Agric Min Rejects Agrostar Unionists’ Request For State Aid Extension

Romania's Agrostar union federation representatives will meet with Dumitru on Friday and propose to have state aid extended by at least one year, based on derogation from the European Commission Regulation on the payment of state aid, Agrostar said Thursday.

"Derogation is not possible. We will focus on replacing the means of granting subsidies. We will have to hold talks with social partners on other development means we will negotiate with the European Commission," Dumitru said before meeting with agriculture union leaders.

Agrostar representatives said they will discuss with Dumitru the situation of state aid, which is no longer granted this year, the state budget funds earmarked for the farming sector in 2010, and investments backed via the National Rural Development Program (PNDR).

Agrostar head Niculae Stefan said talks might also target new state aid schemes meant to replace the old state aid about to be scrapped.

State aid for production of pork and poultry meat, eggs, sugar beet, rice, flax, hemp, soy or tobacco, as well as subsidies for diesel oil used at farming works and electricity used at irrigations will no longer be granted as of January 1, 2010.

Stefan also said they will demand the co-financing of projects submitted by farmers be 100% guaranteed and the farming sector be earmarked 4% of GDP.

Stefan stressed they will decide on further protests unless their demands are met.

Agrostar, the country's largest union federation in the farming sector, was established in 1990 and has over 38,000 members. Also, it reunites over 150 unions from all farming branches.

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