Parliament wants more flexibility on CAP reform
A Parliament own-initiative report on Commission proposals to reform the EU’s common agricultural policy (CAP) says Member States need more flexibility to promote local sectors and to decide upon direct aid to provide a safety net in the event of a major crisis.
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-à-vis current public expenditure on agricultural policy.
Though the report broadly supports the Commission’s proposals, the Parliament rejected 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 rejected 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 asked 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. On 17 March, the Council approves 2 percent increase in milk quotas from April 2008
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).
EU to name farm aid beneficiaries
As of next year, Member States will be required to make public a list of all recipients of EU agricultural subsidies, together with full details of amounts received, putting an end to the traditional secrecy surrounding handouts from the EU’s largest fund.
According to a new Regulation adopted by the Commission on 19 March, the data will have to be published on special national websites by 30 April 2009, so that members of the general public can monitor how money under the EU’s €55 billion Common Agricultural Policy budget is being spent.
The Commission will also set up its own website that will link each national one. Information regarding amounts will be broken down according to whether they were in the form of direct payments or other support measures, notably under the rural development fund.
Next steps
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.
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For further information
Commission:
– “Health Check” of the Common Agricultural Policy – Fit for new opportunities
– Beneficiaries of CAP payments
– Transparency Initiative
European Parliament info: CAP health check: MEPs’ first response (12 March 2008)
Farmsubsidy.org: Data shows increasing inequality in Europe’s farm subsidies
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