First Balkan state applies for EU membership

Croatia has formally applied to join the European Union. It is the first of the newly-formed states that emerged after the war in the former Yugoslavia, to apply to join the EU. It hopes to open discussion in 2004, and possibly be ready to join with Romania and Bulgaria in 2007. President of the European Union, Romano Prodi, said that the union's enlargement and the reorganisation of Europe can only be considered complete once the Balkan states have joined the EU.

In agricultural terms, Croatia exports goods worth an estimated €214 million to the EU, while they import farm products worth €390 million.

Cereal refunds reduced

Export refunds for wheat and barley exports outside the EU have been reduced.

The rate of subsidy had been on the way up, but at the last two cereal management meetings in Brussels this trend was reversed.

The maximum refund for barley was reduced to €12.35 per tonne while the rate for wheat was reduced to €10 per tonne.

Exports of 447,000 tonnes of wheat and 85,000 tonnes of barley were approved.

The guarantees, that grain traders have to pay to take out cereal export licences, have been increased from <€15 to €20 per tonne.