The European Commission will be asked to adjudicate this week on a dispute over attempts to reduce the maximum that can be spent next year under the EU's Common Agricultural Policy budget.

Ms Michaele Schreyer, Budget Commissioner, is seeking the cuts of up to €500 million to offset a reconstruction aid package to war-ravaged Kosovo.

There is a €43 billion maximum permitted for farm spending next year, and Mr Franz Fischler, Agriculture Commissioner, says his directorate is already struggling to meet this amount imposed by heads of government last March.

Ms Schreyer also has problems with other commissioners concerned about staffing levels in the directorates they oversee, although differences over other issues have largely been resolved.

The farm dispute has grown in recent days, however. At first Ms Schreyer was seeking €300 million but aides to Mr Fischler said over the weekend that she had now targeted a €200 million "flexibility reserve" set aside for the CAP.

Agricultural industry representatives fear that the sugar budget is the most likely target for expenditure cuts if the Commission backs Ms Schreyer.