The Minister for Agriculture, Mr Walsh, has said he is willing to do business on CAP reform if "a proper compromise document is put on the table".
Mr Walsh was speaking as EU farm ministers began a second day of talks on overhauling the Common Agricultural Policy in Luxembourg.
Yesterday, the Minister rejected a compromise set of proposals, saying the document made no mention of the central tenet of reforms, namely "decoupling", which involves breaking the link between farm production and direct payments.
A spokesman for the Department of Agriculture told ireland.comthe Minister would be holding a series of bilateral meetings with "like-minded states" today.
France declared today it had won key ally Germany's support for its bid to water down a the proposed reforms of the farm subsidy system.
A Franco-German deal could gut the reform plan proposed by EU Farm Commissioner Mr Franz Fischler of its main thrust - to break the link between payments to farmers and food production in a bid to stop subsidising surpluses.
France is by far the biggest beneficiary of the CAP, which costs nearly half of the EU's €100 billion annual budget. EU officials privately voiced dismay at the reported arrangement, but Mr Fischler told reporters: "I can live with it."
Berlin, the largest contributor to the EU farm budget, has up to now been one of the main advocates of radical change.
Additional reporting - Reuters
