The European Union's executive commission has reportedly adopted a plan to reform Europe's heavily-subsidised sugar market that will sharply cut EU guaranteed prices. The AFP news agency says the plan proposes to cut the sugar prices guaranteed by the EU by 39 per cent over two years from 2007. The reform package is expected to be outlined later today by the EU's Agriculture Commissioner. The agency says it also includes a voluntary compensation scheme for sugar producers forced out of business by the price cut. The reforms come two months after the World Trade Organisation ruled EU sugar policies are illegal, in response to a complaint from Australia, Brazil and Thailand. Sugar producers reap billions of dollars from the EU's Common Agriculture Policy.