On 22 October the European Parliament voted to once again prolong subsidies “to cover expenditures granted to farmers producing raw tobacco” in the proposed EU budget for 2015. Despite the phasing out of support for Common Agricultural Policy (CAP) direct payments to tobacco growers since 2010, a strong stance against the reintroduction of this funding from the European Commission and the Council in the revised CAP 2014-2020, and no mention of tobacco subsidies in the budget, the Parliament has ignored the toll that tobacco has on health.
The Parliament vote is contradictory to its recent commitment to tobacco control in the revision of the Tobacco Products Directive (TPD). It also ignores the Framework Convention on Tobacco Control (FCTC), to which the EU is a signatory, which opposes subsidies for tobacco growing. As the overall agriculture budget for 2015 is set to be cut, what is the justification behind subsidizing such a deadly crop?
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Background
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In 2004, the Council of EU agriculture ministers decided to reform tobacco sector aid (See Council Regulations (EC) No 1782/2003 consolidated version and No 864/2004. This mean that since 2010 all EU countries and regions were required to separate tobacco production from direct subsidies.
Half of the previous support to the tobacco sector was redirected into the Single Farm Payment Scheme (SFP). The rest went towards strengthening rural development programmes, particularly in tobacco-growing regions (see REGULATION (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005). Decoupling aid from production allows producers to grow other crops – if they wish – while maintaining stable incomes. The separation means cutting the link between financial support and the type of crop; the farmer therefore receives a fixed amount depending on the size of the farm. But it is still possible to treat the Single Farm Payment as linked to tobacco. This interesting article from a blog capreform.eu explains that “a significant number of farmers [are] planning to use their decoupled payments to continue or expand non-viable production” – such as growing tobacco crops.
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The draft EU Budget 2015 and the European Parliament vote
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The EP plenary vote on 22 October, 2014 on the draft general budget of the European Union for the financial year 2015 revealed a divided Parliament but rejected two amendments which aimed to stop EU subsidies for tobacco production. From a public health perspective and a general public point of view, it is incomprehensible that over half of the Members of the European Parliament supports channeling taxpayer’s money to a harmful industry rather than supporting farmers to shift to healthier and sustainable crops. A forward-looking CAP needs rather to tackle non-communicable diseases linked to poor-diet and food insecurity as a priority. It would be far better for both population health and financial sustainability in healthcare for MEPs to support production of healthier crops to encourage better diets and prevent chronic diseases.
Europe pays a hefty price for its slow action on tobacco, both in economic costs and harm to its citizens’ health and wellbeing. Tobacco is a major risk factor of cancer, cardio-vascular disease, as well as other chronic diseases such as Chronic Obstructive Pulmonary Disease (COPD).
With regard to the state of play of the 2015 budget negotiation process, no agreement was reached during the conciliation process: “the Commission announced that it will present a new draft 2015 budget within days. After that, a new round of negotiations between Council and Parliament will be launched.”
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Disagreement between the Parliament and national governments
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The Council of national governments has told the Parliament that it cannot approve all their 2015 budget proposals and will require cuts. Tobacco growing subsidies are the clear candidate to be cut. National ministers now have an opportunity to overturn the Parliament’s decision and put the budget back in line with Europe’s many commitments to curb the health impacts of tobacco.
The EU 2015 budget is set to be voted on by the European Parliament on 26 November.
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EPHA action
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Highlighting this negative development, EPHA issued a press release followed by intensive advocacy activity towards the Italian Council Presidency, relevant Directorates-General, EP budget negotiators, rapporteurs and public health-friendly MEPs from the ENVI, AGRI and BUDG Committees. Importantly, EPHA has also mobilised the European health community to raise the subject with their respective national ministers and heads of state involved in the budget negotiations.
EPHA fully appreciates efforts made by the Italian Presidency, on behalf of the Council, to enter into negotiations with the European Parliament on this important issue, and all MEPs who have been fighting for a tobacco-free Europe. This is an important moment for the EU’s credibility – only by putting EU spending in line with our policies and values can it escape criticism of hypocrisy.
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