A compromise deal was forced through by the French Presidency today (20 November) amid conflicting national interests.
According to the agreement, more subsidies for farmers will now have to be spent on measures to protect the environment, rather than measures to support farming income that are linked to production levels.
Backed by more liberal EU countries like the UK and Denmark, Mariann Fischer-Boël, the EU farm commissioner, wanted 8% of all EU farm payments to be devoted to rural development.
But these proposals faced resistance from France, Italy and Germany, and the percentage was reduced to a compromise figure of 5%.
The compromise, adopted by qualified majority vote, meant that some member states either abstained from voting or voted against it. It includes the following:
- Shifting more EU subsidies away from traditional incentives for farmers to boost production and towards rural development and conservation:
- All farms receiving at least €5,000 must shift 5% of EU aid into rural development projects by 2012, in addition to the 5% that is already mandatory. The Commission had hoped for at least an 8% shift.
- Big farms who receive over €300,000 in EU aid must shift an additional 4% by 2012.
- Increasing milk quotas:
- Quotas are increased annually by 1% between 2009 and 2013 [total of 5%] as proposed by the Commission. However, Italy may directly increase quotas by 5% in 2009 , arguing that it needs more milk to produce its cheeses.
- The opportunity for member states to redirect EU farm aid towards sensitive sectors, productions or geographical areas.
EU Agriculture Commissioner Mariann Fischer-Boel said the negotiations had "certainly not been easy" and described debate with the dairy sector as "extremely difficult". She underlined that in order to strike a deal, everybody had to make compromises. Meanwhile, basic instruments of EU agriculture policy were kept and Europe would "be fit for the future," she said.
Michel Barnier, who presided over the negotiations, agreed that discussions on the dairy sector in particular had been very difficult, but the overall compromise gave the EU a good "toolbox" to protect farmers and producers in different sectors, such as livestock and dairy farming.
Shortly before the Council agreement, the Parliament adopted a position on the CAP health check. MEPs backed smaller cuts in farm aid, a limited increase of milk quotas and special aid for milk producers and livestock farmers. It also called for smaller funding shifts towards rural development, instead maintaining intervention schemes and the link between subsidies and production for certain sensitive sectors.
Parliament's views on the CAP health check are not binding, but if the Lisbon Treaty enters into force, the House will have co-decision powers on agriculture.
