E coli: European commissioner suggests £135m payout for farmers

The European agriculture commissioner has proposed spending €150m (£135m) to compensate farmers affected by the E coli outbreak by paying them a proportion of the cost of unsold products.

Dacian Ciolos, speaking before emergency talks between EU agriculture ministers, said farmers could receive around 30% of the cost of vegetables they have been unable to sell due to fears over the outbreak in Germany, which has killed 22 people and made more than 2,200 ill.

“We propose €150m. We will obviously see what we get,” Ciolos said.

The plan was immediately rejected as insufficient by Spain, which has suffered disproportionately from the economic impact of the outbreak, in part because it grows a significant share of Europe’s salad produce but also because cucumbers from the country were initially blamed.

“No, Spain does not see it as sufficient,” the country’s agriculture minister, Rosa Aguilar, said. Spain and some other EU countries had drawn up an alternative plan under which farmers would be compensated for between 90% and 100% of market price losses, she said.

Her French counterpart, Bruno Le Maire, has backed the Spanish plan.

The ministers are expected to reach an agreement in principle later on Tuesday. They are coming under intense pressure from the EU farming lobby, which argues that Spanish farmers alone are losing €200m a week due to the outbreak, with weekly €100m losses in Italy.