French farmers refuse to repay €330m in state grants

French farmers have rejected a demand to repay hundreds of millions of euros in state subsidies that have been ruled illegal by the European Commission.

François Lafitte, leader of Fédécom, the fruit and vegetable producers' union, said paying back the €330m given to farmers between 1992 and 2002 would bankrupt them.

"Nobody will pay these subsidies," he said. "Firstly, because the amounts put forward by Brussels don't add up. Secondly, because it would spell ruin for the industry."

Mr Lafitte said the subsidies had helped fruit and vegetable producers "face up to competition" from Spain and Portugal.

Between 1992 and 2002, the French state agricultural agency awarded over €330m in grants to help farmers struggling from a crisis of oversupply of French products in the European market. The money was meant to help farmers lower their prices and find temporary storage for surplus harvest.

In January, the Commission ruled that the subsidies were unlawful and likely to distort competition in the European market. France was ordered to reclaim the original subsidies plus interest.

Mr Le Maire's predecessor, Michel Barnier, launched an appeal at the European court of justice in April to reduce the amount claimed by Brussels. While the exact figure has yet to be agreed, the new agricultural minister believes the process of reimbursement should begin regardless, warning that if the appeal were lost, France would have to pay even more than the €330m plus interest of €100m-€150m that has so far been invoiced.

The calls for repayment come at a difficult time for French farmers, with prices for fruit and vegetables 30-40 per cent lower than the weekly average of the past five years, according to Modef, the farmers' union.

This is not the first time France has been rapped by Brussels for illegal subsidies. In 2002, the European court ruled that France had given illegal financial aid to cognac producers. France admitted the subsidies had been against European law but remains mired in a battle with the cognac producers to reclaim the funds. In both cases, if the subsidies are not paid back, Brussels can order France to pay a fine and daily penalties

Debate starting on new French Internet piracy bill

Lawmakers in France’s lower house of parliament are to start debate Tuesday on a new version of a bill aimed at cracking down on French online piracy by cutting the Internet connections of those who illegally download movies and music.

An earlier version of the bill was found to be unconstitutional. Legislators in the National Assembly are to debate the amended bill through Friday, but decided not to take a vote on it until they return from summer recess in September.

The piracy legislation, which has been working its way through parliament for months, has drawn attention from entertainers and Internet privacy advocates beyond France’s borders.

The music and film industry has applauded the measure, sponsored by President Nicolas Sarkozy’s conservative UMP party. But critics contend it represents a threat to civil liberties and could open the way for invasive government monitoring.

The bill calls for graduated reprisals against alleged offenders. If suspected pirates fail to heed e-mail warnings and a certified letter, their home Internet connections could be cut for a period of one month to one year, and they could face fines or even jail time.

The earlier version of the bill would have allowed a new government agency to cut off Internet connections, however the French Constitutional Council ruled that was unconstitutional.

The new version of the bill would leave it to a judge to decide whether to cut repeat offenders’ connections. Those found guilty could appeal the decision.

Still, the opposition Socialists have threatened to refer the bill to the Constitutional Council again. They have also loaded the bill with more than 700 amendments, in an attempt to slow down the parliamentary debate.

If it passes a vote in the lower house, the National Assembly, the legislation will need to be examined by a committee of lawmakers from the upper and lower houses of Parliament and submitted to a new vote in both houses before it becomes law.

Even as the French lawmakers struggle over the legislation, crafty Internet pirates are already hatching strategies to get around it.