The European's Union food safety agency said Thursday it was not changing its opinion that a variety of genetically altered potato did not pose a threat to people or the environment. BASF AG, the German company that created the "Amflora" potato as a source of higher-quality starch for paper, said the decision paved the way for EU approval.

Two scientists on the European Food Safety Authority panel dissented from its decision, however, saying that harmful impacts could not be assessed and gene transfers between plants and bacteria may be possible.

The environmental group Greenpeace said this showed that "a wider consultation of scientists is paramount if we are to assess the safety of genetically modified crops."

Most biotech products are banned in Europe, for fear that their seeds or pollen will accidentally spread and transfer altered genes to other species.

The EU's executive commission has not authorized any new biotech crops for cultivation in the 27-nation bloc for more than a decade and has not decided on "Amflora" since it was asked to approve it in 1996.

It last year delayed a decision on approving Amflora, saying it couldn't act until EFSA could examine gene transfer.

The potato contains a gene from bacteria making it resistant to antibiotics, so that it can be treated for bacteria without sustaining harm.

The authority said it had found that plants could not transfer genes conferring antibiotic resistance to bacteria in the wild, this creating more dangerous bacteria, and it was "unlikely" that humans or the environment would be harmed by plants with such genes.

BASF claims starch from the potato would reduce the water, additives and energy need in paper-making. It expects to make up to euro30 million yearly from licensing farmers to grow it.