Prime Minister Matti Vanhanen did not want to bring up the issue of the so-called Article 141 agricultural subsidies in connection with the negotiations over reforms to European Union institutions that were held in Lisbon from Thursday night through Friday. Finland wants to continue providing the financial support to farmers in the south of Finland.
The Prime Minister said that it would not be compatible with the Finnish negotiation strategy to link two unrelated issues together. Vanhanen has come under some criticism for not making Finnish approval of the reforms agreed upon at the summit conditional to the continued 141 supports. Many other countries have not had any problem in promoting national interests in such a way.
Vanhanen says that the Commission understands when a particular issue is important for a member state. He added that he trusts that the Commission has the "sensitivity to see" Finland's situation.
Vanhanen nevertheless took up the issue of the Article 141 subsidies during discussions that he held in Lisbon with European Commission President José Manuel Barroso on Friday.
According to Vanhanen, Barroso had a positive attitude and promised to examine the matter closely.
"Finland's arguments are very strong in this debate", Vanhanen said in Lisbon. The Commission nevertheless wants Finland to reduce its subsidies.
Finland wants to continue to provide farmers in the south of Finland with national subsidies under Article 141; this would require permission from the Commission. The current agreement authorising Finland to pay the subsidies runs out at the beginning of next year.
There have been calls from Sweden and Denmark at the ministerial level calling on Finland to stop paying the Article 141 supports. The Swedes and Danes complain that the subsidies distort competition. Vanhanen says that he discussed Finland's situation with several colleagues in Lisbon.
Discussions between Finland and the Commission on the agricultural subsidy issue are continuing. Decisions are expected sometime in November.
