The European Commission (EC) has provisionally agreed to Bulgaria granting additional money from the state budget for dairy producers. The news was announced after a meeting between Bulgaria's Deputy Prime Minister responsible for European Funds management Meglena Plougchieva, Agriculture Minister Valeri Tsvetanov and EC commissioner for Agriculture and Rural Development, Mariann Fischer Boel, on September 3 2008.

Bulgarian dairy producers and other farmers have been protesting for more than a month, demanding their state subsidies for the months after February 2008. The Cabinet had already approved an additional subsidy of 60 million leva, but was waiting for EC permission so as to avoid financial sanctions.

The EC assured Bulgaria's authorities that there would be a positive resolution in favour of the farmers.

A final decision regarding the subsidies would be taken within days or weeks, mediapool.bg said. Then dairy producers will be able to receive the money. A special technical meeting on September 4 would clarify the framework and the amount of funding allowed. However, the EC's stand is that the money could not be paid as subsidies. Hence the Bulgarian authorities would have to find another scheme to pay it without violating the European Union's legislation. One possibility was the money to be paid as technical financial aid and investments in agriculture sector and aid for meeting the EU quality standards, mediapool.bg said.

Tsvetanov was quoted as saying that the Agriculture Ministry had made the necessary calculations so that once clearance had been given; dairy producers would receive the money as soon as possible.

No figures were quoted, but the sum of 60 million leva, approved by the Cabinet, is expected to remain unchanged. However, the exact sum would be decided while the payment mechanism was clarified.

Meanwhile, livestock breeders and producers from all over Bulgaria declared that they would continue protesting. They blocked the highway between Rousse and Sofia for 10 minutes. They demanded subsidy of the whole branch and minimum purchase prices for chicken, meat and eggs. Another group of protesters blocked one of the lanes on the road between Karlovo and Plovdiv for nearly an hour. They were demanding subsidies commensurable to those in Romania.