Future of biofuels in Europe hinges on state aid

State subsidies will be key to converting Europe’s least efficient sugar factories into biofuel plants as EU sugar reforms roll out, beet growers, industry officials and analysts said on Monday.

Sugar production in the EU’s least efficient countries will drop drastically under reforms to the 25-member bloc’s subsidy-laden sugar regime aimed at creating a level playing field in international sugar trade. EU support prices will drop by 36 percent over four years from July 2006.

Reuters