Free market think tank weighs in on CAP reform

The European Centre for International Political Economy (ECIPE) is a rare creature among Brussels think tanks: first, it advances a strong free trade agenda and second, it does not rely on EU institutions for its funding (its website says that its ‘base funding’ comes from the Free Enterprise Foundation in Sweden). Earlier in the summer EPICE published a briefing paper about the CAP written by Valentin Zahrnt. There’s not a whole lot new in the paper and there is a lot in common with a policy brief I wrote for the Centre for European Reform back in December 2005. The author comes down firmly on the non-trade-distorting, public money for public goods agenda advanced most strongly by Sweden, Denmark and the UK (and more moderately by the Netherlands).… Read the rest

Who gets what in EU rural development funds

In December 2006 European Union heads of government agreed a new Financial Regulation, the legal text that sets out the rules for the EU budget. The new Financial Regulation contains new requirements on the public disclosure of end beneficiaries of EU funds. The first significant fruits of the new budget transparency law are due by 30 September 2008, the deadline set out in the implementing regulations relating to expenditure under the Common Agricultural Policy. By this date each member state is obliged to provide a web-based search tool detailing all end beneficiaries of EU funds spent under rural development programmes between 1 January 2007 and 14 October 2007 (sometimes referred to as the second pillar of the CAP).… Read the rest

The great targeting debate

Czech agriculture minister Petr Gandalovic made an curious statement at the informal Agriculture Council meeting held earlier this week in the French Alps. Mr Gandalovic, who will assume the chairmanship of the Council under the Czech EU Presidency in the first half of 2009, told his colleagues:

“The more specific you make the policy, the more room you give to bureaucrats who make the decisions. Non-targeted payments give more power to farmers.”

In case it’s not clear, Mr Gandalovic was making the case against targeted payments. In doing so, perhaps inadvertently, he touched on a question that goes to the very heart of the debate about the future of the CAP: the extent to which the CAP’s 54 billion euros of annual public expenditure should be targeted on clearly defined objectives and measurable outcomes.… Read the rest

The CAP and Europe's subsistence farmers

When the Commission unveiled its proposals for the health check back in November 2007, the DG Agri spin machine highlighted the proposals to introduce upper limits on the subsidies that are paid to Europe’s largest, wealthiest and most competitive farmers. What got much less attention was the plan to introduce lower limits, at a level of €250 per annum. This could make life even harder for some of Europe’s poorest farmers and shepherds who barely get a look-in when it comes to Brussels handouts. … Read the rest

McDonald's, Lidl and big biotech at the Copa-Cogeca annual congress

Time is running out to book your place at the annual Congress of European Farmers, organised by COPA-COGECA, the umbrella organization that attempts to represent European farm unions in Brussels. The two-day meet-up, entitled “Visions for the future of agricultural policy in Europe” takes place on 30 September and 1 October. Having perused the programme, Berlaymole is barely able to contain his excitement. … Read the rest

Barroso's poll results – 87% say ditch biofuels target

Several bloggers have noted the amazing disappearing biofuels poll (an online poll about EU biofuels policy that suddenly vanished from the website of the European Commission President José Manuel Barroso without any explanation). Following repeated enquries to the Commission President’s press office that were completely ignored, a more formal approach under the EU access to documents law has yielded a very comprehensive reply from Pia Ahrenkilde Hansen, the Commission President’s Deputy Spokeswoman. I can now reveal the results.… Read the rest

World food prices and the CAP

Jorge Nùñez Ferrer of the Centre for European Policy Studies in Brussels has an interesting comment on the possible implications of current high food prices for future CAP reform in the debate on the post-2013 EU budget, in which he rather despairingly projects that “the French Presidency will seek to strike a deal in the name of world food security to maintain (if not increase) the present budgetary allocation for the CAP for the next Financial Perspectives, similar to the agreement struck between Chirac and Schroeder in 2002.” Certainly, the way the CAP should be reshaped in an era of higher world food prices is a new element in the debate on CAP reform which it is obviously hugely important to address.… Read the rest

Do-ha, So-wha’?

The internet silence following the collapse of the Doha Round on 30 July last has been striking. It appears not only the negotiators but also the commentators feel the need for a well-earned August break. In a piece for last Sunday’s Irish Sunday Business Post, I tried to summarise my own views on why the Round collapsed.… Read the rest

Do-ha, So-wha'?

The internet silence following the collapse of the Doha Round on 30 July last has been striking. It appears not only the negotiators but also the commentators feel the need for a well-earned August break. In a piece for last Sunday’s Irish Sunday Business Post, I tried to summarise my own views on why the Round collapsed.… Read the rest

CAP killer?

We’re used to the arguments that the CAP’s subsidies and tariffs are very bad for many desperately poor farmers in the developing world, with some going as far as to say that the EU has blood on its hands but now comes a piece of medical research which suggests that EU farm subsidies are responsible for more than ten thousand diet-related deaths among European citizens. … Read the rest