Politics GLB
Negotiations on the new CAP are not going smoothly
In Brussels, negotiations on the new Common Agricultural Policy (CAP) are in full swing. The central question now is how the budget of €387 billion (one third of the EU budget) will be distributed in the coming years.
Yesterday (Wednesday 26 May) negotiations started between the European Commission, the European Parliament and the agriculture ministers of the Member States. The central question now is how the budget of €387 billion (one third of the EU budget) will be distributed in the coming years. Capping the subsidies for large companies, extra subsidies for small and medium-sized companies and the budget for the implementation of the new eco-schemes are hot topics.
Concerns about eco-schemes
The European farmers' organization Copa-Cogeca argued with the negotiators for a flexible and simple implementation of the new CAP. "We need to ensure that all farmers can participate in the new CAP and eco-schemes," said Tim Cullinan in a statement. "Visibility of the sector must be the first priority. That starts with economic and social viability. Then we can work on sustainability."
That is why the Copa-Cogeca argued for a good basic payment and minimal eco-schemes and a lot of freedom for the Member States to implement the eco-schemes in a workable way. The (administrative) burden for the farmer should not increase.
LTO also advocates that at least 60% of the first pillar budget goes to active farmers. "The CAP remains important for Europe's food supply, because it offers farmers a financial safety net. The main thing for us is that the money should go where it is most effective: the farmyard. This is where the climate, environmental and nature goals are achieved," says LTO chairman Sjaak van der Tak in a statement.
Pressure is high
Negotiations have been difficult so far. Nevertheless, the pressure is high to reach an agreement today. Otherwise, the Member States will run into problems with the elaboration of the National Strategic Plans (NSP), which are to be presented at the end of this year. In the NSP, each Member State must elaborate the CAP at national level.
Jurphaas Lugtenburg
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
