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Future of EU farm policy debated in Brussels

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Published 19 July 2010, updated 07 November 2012

After an initial contribution by the European Parliament, Brussels will play host to a major stakeholder debate on the future of the EU Common Agricultural Policy (CAP) on Monday and Tuesday.

conference organised by the European Commission on 19-20 July represents the culmination of a wider public debate on the EU's future farm policy, which began earlier this year.

The debate was launched by EU Agriculture Commissioner Dacian Cioloş to gather stakeholder and citizens' views before the Commission tables policy guidelines in November (EurActiv 13/04/10).

A synthesis report of the more than 5,000 contributions received from the general public, stakeholder organisations and think-tanks will be presented and debated during the two-day event. 

Call for continued direct support, green incentives

A preliminary assessment of the consultation results reveals a focus on three themes: ensuring food security, making agriculture environmentally-friendly and securing the prosperity of rural areas.

The consultation also witnessed widespread calls for direct support to farmers to be continued in order to help them deliver food security. More equal distribution of CAP money and extra incentives to help farmers deliver on environmental objectives were also highlighted as major topics of concern.

Parliament rejects farm budget cuts

The first contribution to the debate came from the European Parliament when it adopted a resolution earlier this month, setting out its views on how the EU's farm policy should be reshaped after 2013.

The report, which was drawn up by Scottish MEP George Lyon (Alliance of Liberals and Democrats for Europe), stresses that CAP funds must be "at least maintained during the next financial period" in order to face new challenges, such as climate change.

Some 40% of the EU's €120 billion annual budget currently goes to the CAP.

The Parliament also stressed that direct payments to farmers should be fully funded from the EU budget to avoid any co-financing by governments that could erode fair competition in the EU single market. 

Tabled well ahead of the publication in November of the Commission's agricultural reform plans, the Parliament's report – which does not impose legal obligations on member states – seeks to shape the debate ahead of the EU's upcoming multi-annual budget discussions (EurActiv 14/07/10).

Since the Lisbon Treaty came into force, no EU agricultural reform plans or legislation can be approved without Parliament's agreement. However, the lawmakers have less say on the EU's long-term budget and the share of it that goes to the CAP, as they can only approve or reject the final deal.

"We have the power [...] to press the nuclear button and refuse to accept the budget, which means that the 2013 budget rolls over again until we get an agreement. But that's a pretty big step for the Parliament to take," Lyon said in an interview with Reuters last week, hinting at how serious the EU assembly is about maintaining the CAP budget.

However, he acknowledged that the budget is unlikely to escape the general austerity drive being pushed by governments around Europe.

Whether or not to slash the future CAP budget to free up money for other priorities is one of the most contentious issues of the EU's upcoming farm reform and a major source of tension between CAP supporters like France and critics such as the UK and the Netherlands.

Next steps: 
  • 19-20 July 2010: CAP post-2013 conference in Brussels.
  • Nov. 2010: Commission communication setting out different options for future CAP after 2013, followed by formal public consultation.
  • June 2011: Commission to put forward legislative proposals on CAP reform.
  • July 2011: Commission to present proposals on next multi-annual financial framework.
  • By 2013: Common Agricultural Policy due to be reformed.
Background: 

The Common Agricultural Policy (CAP) is a system of EU agricultural subsidies and programmes. Worth €55 billion a year, the CAP currently represents some 45% of the EU's long term budget for 2007-2013. 

The policy is one of the bloc's oldest and has a long history of changing priorities.

The latest review, dubbed the CAP Health Check, aimed to identify adjustments needed to ensure that the policy remains relevant for addressing new challenges like climate change and water scarcity. As part of this process, the EU has agreed to abolish milk production quotas, cut direct subsidies to farmers further and bolster rural development policy. 

However, most current decisions regarding the CAP will expire in 2013, and farm aid and various market regulation instruments such as dairy quotas will have to be reviewed before 2014.

While the Parliament has not yet had a formal say on the future CAP and its share of the EU budget after 2013, MEPs will get full co-decision powers with member states on the issue now that the Lisbon Treaty has entered into force.

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