Politics, the CAP and Polish Agriculture 

Politics, the CAP and Polish Agriculture

This report, prepared by

EPPA , states that the CAP is seen by much of the public as failing to deliver what society wants from agriculture in terms of food safety, animal health and rural environment. It is neither consistent with emerging policies on sustainable development, nor with consumer demands for high quality, local and regional foods. Demand for safer, "greener" food and pressure for higher consumer protection has dramatically increased in the last few years. CAP expenditure is not aligned with these new policy objectives.

The report underlines that there is a growing body of public, economic and political opinion in favour of devoting the majority of public funding to environmental and social goals, and leaving food production essentially to the market, allowing for state assistance in case of disasters. This school of thought basically advocates the phasing-out of production-linked subsidies and price support, which stimulate over production, and the development of a strong rural development policy. Rural development policy would include measures such as: funds for infra-structural development, vocational training, encouragement of sound environmental farming practices and payments for public services like caring for cultural landscapes and nature.

EPPA argues that the insulation of the CAP from other Single Market policies and from mainstream budget decisions has led to a series of indefensible complexities that actively - albeit unintentionally - encourage fraud and discourage good administration. It adds that reform is unlikely to stick without reform of the policy-making process. This requires a better balance between the institutions involved in decision-making; greater institutional responsibility; an opening up of the agricultural policy and decision-making and the formal establishment of effective countervailing power.

The report examines the impact of EU accession on Polish agriculture. It states that accession to the EU will have a major impact on Polish agriculture. It will force restructuring. EPPA argues that the CAP as it stands is not the best policy for Poland. It requires administrative capacities beyond Poland's foreseeable means and does not cost effectively meet Poland's needs. It will create many of the same problems faced in the EU, and will certainly change in the not too distant future.

EPPA believes that a reformed CAP, further and faster in the direction taken to date, should offer better solutions for Poland. Funding focused on social and environmental objectives should enable Poland to restructure in a more people friendly manner. Early abolition of quotas would enable Poland to produce to its full potential. A reform of CAP which enables the EU to compete effectively in world markets, in spite of the loss of export subsidies resulting from the WTO agreement, will be vital to Poland. Provided that significant investment (both public and private) is made in developing Polish capacity to implement high safety and quality standards, Poland's agri-food sector can be competitive. With the right policies in place, Poland can capitalise on its natural attributes. Demand in the EU for "natural" products and rural tourism is growing. The potential for achieving the so-called "European model of agriculture" in Poland is considerable.

EPPA sees the key problem in timing. Enlargement negotiations are scheduled to finish at the end of this year and the next essential step in the EU's reform process - the Mid Term Review - is only scheduled for June this year. Accordingly, it is extremely unlikely that clear cut rules on the future CAP will be agreed prior to Polish accession. The Commission's January 30 paper is an attempt to steer through this complex situation with an eye to the future. It is essential that this leads to faster reform on the EU side as well as providing a better arrangement for Poland than simply applying the CAP as it stands.

Clearly the result must provide for equal treatment between new and old EU members to secure a successful, durable, outcome. Poland, like all applicant countries, needs to be more actively involved in the CAP reform debate to determine what it needs to secure its short, medium and long-term interests.

The

full report is available from EPPA's website.