New rules to make farming in the European Union more environmentally friendly moved within reach Wednesday, after the bloc\'s governments and the European Parliament thrashed out a deal, dpa reported. But the agreement was promptly met with a hail of criticism from environmental groups, which lamented that it does not go far enough. \"The majority of subsidies will be used to prop up a failing system that benefits a few multinationals and industrial-scale farms. This is a disaster for the environment, small farmers and developing countries,\" said Stanka Becheva of Friends of the Earth Europe. The new measures make 30 per cent of national direct payments to farmers conditional on so-called greening measures - such as diversifying crops, maintaining permanent grassland and creating \"ecologically focused\" areas. The reforms also seek to further bolster small agricultural operations and young farmers. \"For years, we have seen the acute problems of soil erosion, water scarcity and pollution as well as a decline in biodiversity. This deal will continue this decline in nature and in many instances it will be irreversible,\" predicted Tony Long of WFF. EU politicians, however, hailed the agreement on the agricultural reform - two years in the making - as a breakthrough, after months of negotiations on one of the most challenging policy areas in the 27-member bloc. Parliament alone had drafted 8,000 amendments. This is the first time it has a say on the common agricultural policy. \"We managed to strike a balance, which will mean that farmers will be able to continue to farm while at the same time we show our concern for the environment,\" said EU lawmaker Luis Manuel Capoulas Santos, who helped negotiate the deal. \"It shows that the institutions in Europe can work for the people,\" said Irish Agriculture Minister Simon Coveney, whose country currently holds the EU\'s rotating presidency. \"This is about providing farmers across Europe with some certainty for the future.\" Final approval of the reform is still outstanding, however, as it depends on the bloc\'s 2014-20 budget, which is caught up in wrangling between the parliament and member states. EU agriculture spending makes up almost 40 per cent of EU funding, though the sector generates less than 2 per cent of the bloc\'s economic output - making the issue highly contentious. At the same time, farming is considered crucial for food security. Coveney called it \"the most important sector in the EU economy.\" But many now argue that the EU\'s generous agricultural subsidy can only be justified if it promotes environmental reform. The package additionally touches on special areas such as sugar and wine, with sugar quotas for instance to be ended by 2017.