Brussels  - The European Union should act to stabilize food prices across the continent, a top official in the bloc's rotating presidency said Monday, one day before the EU's executive is set to propose changes to its agricultural policies.

"We should adopt measures which could stabilize the market. We shall see what could be done especially concerning market interventions, and the European Commission is probably going to propose lifting the premium for energy crops," Slovenian Agriculture Minister Iztok Jarc said at a meeting with EU counterparts.

"Definitely we have a problem now because we don't have any stocks, and if you had some stocks and if you have in mind that with stocks you could intervene in the market, perhaps the situation would be better," he said.

On Tuesday the European Commission is set to present the results of its so-called "health check" on the Common Agricultural Policy (CAP). The review is expected to propose modest liberalizations to the CAP, such as finally scrapping the system of paying farmers not to use their land and phasing out quotas on milk production.

Some commentators also say that it is likely to propose scrapping the current system of paying farmers more to grow crops which can be converted into fuel.

Countries which say that the CAP is inefficient, such as Britain, say the food crisis proves that liberalization is needed.

But countries which support the CAP, such as France and Germany, say that the current surge in food prices means that it would be unwise to liberalize it too much.

Jarc refused to comment on the argument, saying that "there are many reasons for high food prices, so I wouldn't make a direct connection to the CAP."

"We don't only have a problem with food prices, we also have the problem of climate change and high energy prices. It's a combination of all factors," he said.

EU meetings are chaired by each member state in turn, with the so-called "presidency of the council" lasting six months. Slovenia currently holds the presidency, while France is set to take over in July. (dpa)