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Post an EU jobA Parliament own-initiative report on Commission proposals to reform the EU's common agricultural policy (CAP) says member states need more flexibility to decide upon direct aid to provide a safety net in the event of a major crisis.
"Agricultural structures in Europe are very diverse. Not all problems can be solved using one tool," said Parliament's rapporteur on the report, German MEP Lutz Goepel (EPP-ED). Therefore, Parliament would like to introduce a new flexible instrument to the CAP "to promote local sectors and to establish basic safeguards and risk management in the event of a crisis," he added.
The report, adopted by an overwhelming majority (510 votes to 88, with 80 abstentions) insists on upholding the concept of a "sustainable, competitive and multifunctional agriculture". The basic objective of this will be to supply consumers with healthy and safe food products "in sufficient quantities and at reasonable prices".
MEPs also urged the Commission to give more consideration to the benefits of the CAP, calling on it to carry out a cost-benefit analysis regarding security and self-sufficiency of food supply and the preservation of rural communities. In addition, they ask the EU executive to compare the potential costs for the consumer of higher food prices arising from increased global demand vis-ŕ-vis current public expenditure on agricultural policy.
Though the report broadly supports the Commission's proposals, the Parliament rejects any reduction in the total budget of the first pillar (market support) of the CAP for the period up to 2013. The Commission is proposing a reduction of the budget for the first pillar in favour of increased support for the second pillar on rural development.
The Parliament also rejects caps on direct aid as well as "any discrimination according to farm size and legal form in the direct payments".
Regarding milk quotas, MEPs acknowledge that the current system is unlikely to be continued after 2015. Therefore, it asks the Commission to present a convincing plan for the milk sector for the period after 2015 to guarantee the continuation of milk production in Europe in all regions.
Although Parliament's report on the Commission's so-called "CAP health check" is not binding, "the future French Presidency has already announced that it will draw the necessary conclusions from this report and we eagerly expect the proposals for reform from Michel Barnier," said Danish MEP Niels Busk (ALDE).
The EU executive is set to present more detailed legislative proposals for the CAP health check in May 2008. The Parliament will have to be consulted on these. The proposals could be adopted by EU agriculture ministers as early as the end of 2008, after which the reforms would take effect immediately.