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Banana aid request rejectedAttempts by the Canarian authorities to secure public subsidies for banana producers in the Islands have been thwarted by the Spanish Parliament.
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Canary Islands - 26.06.2008 - A motion asking Madrid to pay 50% of the cost of exporting bananas from the Canaries was formally rejected by the government. The request, submitted by the opposition Popular Party and based on an all-party agreement in the Canarian Parliament back in January, was designed to obtain public funding to offset the losses suffered by the sector as a result of the more flexible entry conditions for bananas from Latin America. However, the government says it is too early to assess the true extent of the impact of the new measure. Leopoldo Cologán, head of the European Banana Producers' Association, said the decision was 'ludicrous' and accused the government of wanting growers to go out of business before contemplating aid mechanisms.
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