The European Parliament gave unanimous approval to a new reform package from the European Commission which seeks to de-couple subsidies to fruit and vegetable products.

Under the new scheme, subsidies linked to production will be replaced with direct payments, in order to not encourage over production of fruit and vegetables and the associated low prices that come with it. The direct payment will be given in return for meeting certain environmental, food safety and land management standards, says the Commission.

The new reform, approved on 12 June, will come into force in 2008.

For more information on the new regulations visit the EU's Europa website.