The European Union has agreed to give its dairy sector an extra €280 million (NZD$555 million) in special aid, caving in to farmers' vocal demands in an effort to quell a season of unrest in agriculture reports The NZ Herald. The news came as angry farmers pelted riot police with eggs and buckets of milk and choked traffic with tractors in Luxembourg, one of Europe's financial capitals. EU Farm Commissioner Mariann Fischer Boel said the €280 million she proposed was her "contribution to try to set an end to these protesters in the streets". But Fischer Boel said she was forced "to empty my pockets" to meet the demands of 21 of 27 member states seeking some €300 million (NZ$595 million) in further subsidies. Farmers later welcomed the breakthrough, especially since it also included rules that could limit milk production at a national level to push up prices. Overall though, different EU farming groups continued to demand more subsidies and more protective measures. The European Union has been trying for years to wean farmers off subsidies to face the world markets on their own, yet a global drop in demand amid the credit crunch has caused prices to plummet.
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