Year: 2007

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Council agrees reform of the sugar reform

The Council agreed yesterday the Commission’s proposals to improve the attractiveness of the sugar industry restructuring scheme in order to meet the Commission’s objective of a reduction in 6 million tonnes of sugar quota by the end of the four year transition period 2006-2010 for the current EU sugar reform. As noted in a previous post, this reform target had been threatened by a much lower renunciation of quota in Year 2 of the reform than the Commission had assumed.

The key elements of the ‘reform of the reform’ are

  • The percentage of the restructuring aid to processors which is to be given to growers and processors is fixed at 10 percent, with an additional top-up payment to growers of €237.50 per tonne of quota renounced, payable retrospectively.
  • No levy will be charged on the preventative withdrawal 2007/08 if at least this quantity is renounced in 2008/09.
  • Beet growers who wish to renounce quota for the first time may now apply directly for aid from the restructuring fund, up to a limit of 10 percent of a factory’s quota.
… Read the rest
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Why farmers in the New Member States love the CAP

Jerzy Wilkin of Warsaw University in a recent paper has summarised the agricultural experience in the New Member States (NMS) under the CAP since they joined the EU in 2004. One of the points he highlights is the change in attitudes among farmers to the EU particularly in Poland, the largest of the New Member States. Although ex ante studies had suggested significant gains to agriculture as a result of accession, farmers were generally fearful and negative towards membership prior to 2004. Three years later, the situation is transformed. The share of Polish farmers supporting Poland’s accession to the EU has risen from 23% in 1999, to 38% in 2002, to 66% in 2003 and to 72% in 2005.… Read the rest

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Fischer Boel seduced by food security rhetoric

Experts on agricultural policy are often asked why the ‘farm lobby’ has been so successful although, of course, at EU level its influence has declined over time. In part this has been because it has been losing the debate and has often shown insufficient flexibility in responding to new framings of issues.… Read the rest

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CAP v GPS?

My farmsubsidy.org colleague Brigitte Alfter tells me that the Danish Liberal Party is proposing diverting CAP money to Galileo, the EU’s sat nav (Global Positioning Satellite) system.

If you had €55 billion what would you spend it on?

Update (20 September):

It looks as though the Danish Liberal Party are not the only ones eyeing up the CAP as a source of money for Galileo. Deutsche Welle reports that the Commission is now proposing that unspent CAP funds be used for the project. High commodity prices mean that the Commission has probably been spending less than expected on intervention and export subsidies, so there could well be some spare cash in the CAP pot. I suspect this is just the beginning of claims from other European projects for a slice of CAP largesse as we head towards the EU Budget Review and Health Check. … Read the rest

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Plus ça change?

Sarko has done it again. In a brilliant media stunt, he has managed to grab the headlines and project a dynamic image of a changing France, in “rupture” with the Chirac era. I don’t want to ruin the party, and I certainly hope France is moving forward, but his speech is worth a closer look. Yes, he is promising a brand new CAP. But if you look at the few contents, it all sounds quite “déjà vue”. … Read the rest

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Handy primer on CAP reform debate

The new issue of Food Ethics magazine is devoted to a discussion of CAP reform and the 2008 CAP Health Check. Alongside articles by CAP Health Check blogger Wyn Grant and me, you’ll find some useful analysis by many of the movers and shakers in the CAP debate, both in Brussels, the UK and elsewhere. Read article-by-article here, or download the entire magazine as a handy PDF file: Food Ethics – CAP Reform issue. The Food Ethics Council is a UK-registered charity that challenges government, business and society to make wise choices that lead to better food and farming.… Read the rest

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Danish parliament unanimously calls for elimination of CAP support

Some Danish colleagues told me recently that the Danish Parliament on 30 May last unanimously passed a resolution requiring the Danish government to propose a strategy for how it would actively work for the elimination of EU agricultural support. The strategy should include a timeframe and plan of activities which should take into account the planned CAP Health Check in 2008 and the review of the EU budget in 2009. The strategy should be presented to Parliament before the end of 2007. … Read the rest