Do we need a "common" agricultural policy?

The final paragraph of Commissioner Fischer Boel’s valedictory leaflet is revealing and foreshadows the debate that has yet to surface about the future of the CAP after 2013, the end of the current financial perspective. Mrs Fischer Boel makes the case for maintaining a common European agriculture policy among the EU’s 27 member states, presumably funded from the EU budget, as it is now. … Read the rest

Do we need a “common” agricultural policy?

The final paragraph of Commissioner Fischer Boel’s valedictory leaflet is revealing and foreshadows the debate that has yet to surface about the future of the CAP after 2013, the end of the current financial perspective. Mrs Fischer Boel makes the case for maintaining a common European agriculture policy among the EU’s 27 member states, presumably funded from the EU budget, as it is now. … Read the rest

UK House of Lords reviews 2010 EU draft budget

In a recent report, the UK House of Lords European Committee criticised the European Commission’s proposals for the 2010 European Communities budget for maintaining a very high level of spending on agriculture, and failing to shift adequate resources to stimulus measures to aid economic recovery. It expressed frustration that, in the middle of an economic crisis, the proportion of the budget going to agriculture remained so large.

It identified a particular problem for the funding of the second tranche of the European Economic Recovery Programme. This was the stimulus package of €5 billion agreed in March 2009, of which €2.6 billion was to be funded from the 2009 budget and €2.4 billion from the 2010 budget.… Read the rest

10 reasons why the Single Payment Scheme is politically unsustainable

The EU spends around 30 billion euros each year on the single payment scheme, by far the largest of the myriad schemes and programmes that together comprise the 54 billion euro budget of the Common Agriculture Policy. The scheme was first introduced in 2005 but it is hard to see it surviving in its current form beyond the end of the EU’s 2007-13 financial perspective. Here are five reasons why the single payment scheme is not politically sustainable. Five more will follow tomorrow.… Read the rest

Budget pressure on CAP

With the Health Check out of the way, it looks as if the medium-term future of the CAP is going to be strongly influenced by discussions of how the EU budget should be spent. This always raises the awkward question of the opportunity cost of spending large sums of money on subsidising farmers.… Read the rest

Commissioner Grybauskaité: no future for direct payments

A major conference entitled “Reforming the Budget, Changing Europe” was held yesterday in Brussels, marking the end of the consultation phase of the ‘no taboos’ review of the future of the EU budget led by Budget Commissioner Dalia Grybauskaité. The former Lithuanian finance minister presented the results of the consultation process that received more than 300 responses including position papers from each of the twenty-seven member states along with NGOs, universities, regional and local governments, think tanks, lobby groups and businesses. It is clear that Grybauskaité is no friend of the Common Agricultural Policy, especially its €30 billion in direct payments.… Read the rest

Turkeys vote for Christmas

By approving a set of proposals to water down the already modest Commission proposals for the health check, the agriculture committee of the European Parliament has reinforced its reputation for thinking rooted firmly in the past and largely captured by the narrow set of producer interests who do well from the CAP status quo. As I have argued before, the lack of ambition of the health check is playing into the hands of the growing number of those who would like to see the CAP swept away altogether.… Read the rest