When the CAP budget pendulum finally stopped swinging

In the early hours of Tuesday 21 July 2020, around 5.30 am, after four days and nights of negotiations, European Council leaders reached agreement on both the Next Generation EU recovery instrument and the Multi-annual Financial Framework (MFF) for the period 2021-2027. Reaching unanimous agreement among 27 leaders who entered the negotiations with widely different positions was an astounding political achievement. And although the inevitable compromises were accompanied by expressions of regret, it is extraordinary that every leader has expressed satisfaction with the final outcome.

There are many aspects of the European Council conclusions that warrant analysis: the agreement that the EU for the first time can issue debt to fund a stimulus package to address the catastrophic economic fall-out from the coronavirus pandemic; the future links between EU financial transfers to countries and the rule of law; the framework set out for additional own resources in the coming years; the continued relevance of budget rebates: and the extent to which the final outcome succeeded in ‘modernising’ the budget to reflect the EU’s new priorities.

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Member State CAP allocations and progress on the MFF

The Commission’s presentation of its CAP legislative proposals in June 2018 includes Annexes setting out the Member State allocations both for Pillar 1 direct payments (Annex IV of the draft CAP Strategic Plan Regulation) and Pillar 2 rural development (Annex IX of the same draft Regulation). In its draft legislative proposals for the 2013 CAP reform, the Commission had also included an Annex setting out the Pillar 1 Member State allocations (based on the external convergence formula that it had put forward in its MFF proposal a couple of months previously).

But this was not the case for Pillar 2 allocations.

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