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French minister breaks taboo on EU farm budget

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Published 09 November 2010

Out of the blue, French Ecology Minister Jean-Louis Borloo has taken a stance on the EU's future farm budget, in a document which appeared briefly on the ministry's website. EurActiv France reports.

The twenty-page document marks the first French position on the budgetary aspects of the Common Agricultural Policy (CAP) for the EU's next long-term budgetary period (2014-2020).

Figures have so far been a taboo for France as the EU embarks in negotiations over the future CAP, which currently still widely benefits French farmers.

The French Ecology Ministry briefly published the document on the Sustainable Development Commission's website. The text, discretely distributed on the ministry's web page, was no longer available after 4 November.

The Ecology Ministry's taking of a position on these subjects constitutes a radical shift.

The French Agriculture Ministry, which is in charge of farm policy, was angered by the statement, saying that the text "doesn't count".

Traditionally, the Agriculture Ministry decides upon the French position on the CAP. France has already adopted an official position on the CAP's future along with Germany, on 14 September.

Three envelopes

By publishing the document, Jean-Louis Borloo has really set the cat amongst the pigeons.

The text proposes splitting CAP funds into three parts. It bases itself on the principle that France will maintain a financial envelope of around €10 billion each year between 2014 and 2020, as it currently does.

The Ecology Ministry proposes first earmarking €3 billion for direct support to farmers. This "stable source of revenue" would be justified on "social and environmental" grounds, the document underlines. In exchange for the subsidies, farmers will have to respect environmental norms known as "good agricultural and environmental conditions". This €3 billion would be topped up by national sources of financing.

It also suggests spending €4 billion on public environmental goods such as organic or high-value agriculture and grazing. "This wouldn't mean subsidising a loss but paying for the delivery of real environmental services," the report explains.

"Keeping a strong CAP is justified as long as it contributes to sustainable agriculture on a European level," the document states, calling for agricultural production to be "more thrifty in terms of natural resources used".

Change of method

A third envelope would see €2 billion supporting the "agro-ecological transition" of farmers towards sustainable agriculture. This transformation would be established by a contract between the state and farmers who want to modernise their practice, whereby the report mentions conversions to organic or "zero-carbon" farming.

The ministry also suggests subsidising "local cooperation and collective actions on specific territorial issues related to the environment". This sum would be co-financed by "different [national, regional and private] actors," with EU funding providing the largest share.

Finally, the remaining billion would be set aside for food production, as well as for the creation of safety nets to protect against price volatility in the agricultural sector.

Positions: 

"This document doesn't count," said aides to French Agriculture Minister Bruno Le Maire. "It only concerns its authors […] The only true French position is the Franco-German one on the future of the CAP. No divisions exist amongst the government on this topic," the sources affirmed.

In a statement, the National Federation of Agricultural Holders' Unions denounced what it saw as "an act outside of the correct institutional process". "Mr Borloo, don't play it alone, stay within the rules!" the statement read. The Ecology Ministry "still hasn't got agriculture in its wallet!" the main agricultural union raged.

According to the union, farmers had not been consulted before the document was made public and are wary of mounting environmental obligations being imposed upon them by Brussels.

The brochure "doesn't contain any realistic economic vision of note and the carrying out of its recommendations would see a notable decrease in agricultural practice. Food independence and price volatility haven't been addressed, neither has the organisation of the market!" COOP France, an umbrella organisation for cooperatives, complained in a statement.

However, according to PAC 2013, an organisation gathering green NGOs, the verdict is somewhat positive. "Despite the document not containing propositions on market instruments, it is nonetheless innovative and audacious with regards to the targeting of direct payments and accompaniment for the agro-ecological transition," the organisation affirms.

"This document is not coherent with the Franco-German declaration negotiation by Bruno Le Maire, the French minister for food, agriculture and fisheries," the Permanent Assembly of Agricultural Chambers said, before asking: "Who is it who speaks on behalf of France?"

The National Federation of Organic Agriculture (FNAB) welcomed what it saw as "encouraging and courageous proposals". During the debate on reform of the CAP, the new challenges are environmental ones, the new worries are food-related and the new forms of governance are plural and participative," the organisation said in a statement.

An NGO coalition including WWF, the Nicolas-Hulot Foundation and France-Nature Environnement commented on the document in a statement. "We welcome these proposals as the basis for a reformed and re-legitimised CAP," they said, whilst denouncing the fact that "the proposals were withdrawn from MEEDDM's web page following a press communication from the National Federation of Agricultural Holders' Unions".

"We strongly regret this withdrawal as it was a document necessary in the name of public information," the statement read.

"This document is dramatic," said Nicolas-Jean Bréhon, a university academic specialising in agricultural issues. "It is completely different to the Franco-German position and creates a rupture against what Bruno Le Maire was seeking to bring to the negotiations on the CAP," he said.

Next steps: 
  • 17 Nov. 2010: European Commission to outline its approach to the CAP post-2013.
Background: 

The EU's Common Agricultural Policy (CAP) is one of the bloc's oldest policies and has a long history of changing priorities.

The latest policy review, dubbed the CAP Health Check, aims to further modernise the policy and assess whether adjustments are needed to ensure that it is still relevant for addressing new challenges, like climate change. The EU-27 agreed to further cut direct subsidies to farmers and instead bolster rural development policy, and to abolish milk production quotas.

An informal meeting of EU farm ministers on 31 May-2 June 2009 officially launched the debate about the post-2013 CAP. Ministers focused on the future of the direct payments system and the uneven distribution of payments.

But the policy's fate depends on the bloc's next long-term budget, which is to come into effect in 2013. Scrutiny of the Community budget began in autumn 2009.

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