A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

The CAP 2014-2020 budget, a pledge to compromise?

January 21, 2013

While many member states might want 2013 to be the year of European reforms, a new EU budget summit is scheduled for February 7 and 8 to reach an agreement on the 2014-2010 multiannual financial framework.

As a reminder, the special European budget summit held this past November 22 and 23 ended in failure. The cause lays in the dissensions between member states regarding the 2014-2020 financial framework. Among the new budget framework proposals is the plan presented by European Council President Herman Van Rompuy, that considers a €75 billion reduction from the Commission’s requests, including €25.5 billion from the CAP (€13.2 billion on direct aid and market measures, and €8.3 billion on rural development). En the end, the outcome of this latest summit involved the outline of a compromise to re-inject eight billion onto the CAP, an outline that is far from meeting the approval of most member states, and France among them.

Since this setback, the mobilization from both farmers and politicians has not softened, whether they are for preserving budget resources or for additional cuts. Thus, direct subsidies were recently the object of Britain’s wrath, when British Minister of Agriculture Owen Paterson supported the removal of SPSs. In addition, a recent report from the European Court of Auditors reported the deficiencies of SPAS in Eastern Europe. As far as farmers are concerned, protests are continuing in Brussels and in member states. On January 16, French farmers staged a protest against the Government’s agricultural policy and against the environmental controls set by Brussels. For its part, the COPA-COGECA is planning a day of action for European agriculture on February 6.

The new summit on February 7 and 8 will be crucial, because no progress on the common agricultural policy reform will be achieved without an agreement on the multiannual financial framework (MFF). Conversely, should European capitals reach a budget compromise, a political agreement on CAP reform could be planned for late June, as Dacian Ciolos indicated during a press conference on December 10.

Nonetheless, we are now in format where 2014 will be a transition year for the CAP first pillar incentives. On January 17, Dacian Ciolos confirmed that the new regulations relevant to direct payments would be deferred until January 1, 2015, although an entry into force was initially scheduled for January 1, 2014.

As a new Parliament and a new Commission will take office in 2014, nothing prevents us from thinking that CAP reform will take a different course. In the meantime, “the CAP legitimacy is based on the strategic significance of agriculture for the European Union”, indicates FNSEA President Xavier Beulin in his recent letter to French Minister of Agriculture Stéphane Le Foll. It is therefore crucial to strengthen the motivation and means for the Common Agricultural Policy, and consequently modernize agricultural activities through flexible and counter-cyclical subsidies1, in order to meet the new challenges of the 21st century––increased volatility of agricultural prices and of inputs, growing and uncontrolled speculation, added budget restrictions generated by the debt crisis, and rising global food insecurity. And action is needed quickly, because we are dealing with the survival of European agriculture!

1 In this respect, please read momagri’s article “Flexible incentives as truly good idea for the CAP budget” http://www.momagri.org/UK/a-look-at-the-news/Flexible-incentives-a-truly-good-idea-for-the-CAP-budget_1166.html
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Paris, 25 June 2019