EU: Drop in agricutural export refunds prompts EU budget cuts

The Agenda 2000 reforms of the EU's Common Agricultural Policy appear to be having an effect, with the European Commission announcing that it is likely to spend €930m less than expected in its 2001 budget.Brussels has said that it expects big saving to be made in market supports for arable crops (€335m), sugar (€105m), fruit and vegetables (4130m), dairy (€399m) and sheepmeat (€174m) below budgets previously earmarked for these farming sectors.By contrast, appropriations will have to be increased for olive oil plus €89m), fibre plants (€97m) and beef (€82m).The savings have come because of an estimated drop in export refunds and the stabilisation of many sectors, allowing public stocks to be reduced.