Author: Alan Matthews

Alan Matthews is Professor Emeritus of European Agricultural Policy in the Department of Economics at Trinity College, Dublin, Ireland. His major research interests are agricultural policy analysis, the impact of international trade on developing countries, and computable general equilibrium analysis of trade and agricultural policy reforms. He has worked as a consultant to the European Parliament, the OECD, the Food and Agricultural Organisation of the United Nations and the UN Industrial Development Organisation, and has been a panel member in a number of WTO Dispute Settlement procedures. He is a former President of the European Association of Agricultural Economists but writes here in a personal capacity.
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The development interest in the CAP reform debate

Olivier De Schutter, the UN Special Rapporteur on the Right to Food, called last week for MEPs to take into account the impact on developing countries when voting on amendments to the draft CAP regulations post-2013 (see also here). Among other issues, he called on MEPs to support the views of the European Parliament’s Development Committee, which voted unanimously in favour of a mechanism to monitor the CAP’s development impacts (look for Amendment 4 inserting a new Article 110(a)). In the voting last week, COMAGRI MEPs declined to do this.
De Schutter had previously issued a report with some controversial recommendations on how this round of CAP reform could help to realise the right to food in developing countries.… Read the rest

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Following the negotiations on the Direct Payments Regulation

COMAGRI will vote on compromise amendments to the Commission’s proposals for the four main CAP regulations this week. To understand the dynamics of the legislative process, it is helpful to be able to see the positions of the main institutions side-by-side. I have constructed a four-column spreadsheet table showing, article by article, the positions of the main actors as we know them to date for the direct payments regulation (download the file to your computer by clicking File, Download in the upper left of the Google Drive document when the link opens). The four columns show, for each article:

    The Commission’s proposal October 2011
    The COMAGRI rapporteur’s amendments May 2012
    The Council’s position as summarised in the Cyprus Presidency document December 2012
    The COMAGRI compromise amendments Jan 2013

I have only had the time to construct this table for the direct payments regulation so far.… Read the rest

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The significance of Rule 70 for CAP reform negotiations

To understand the possible timing of the CAP reform negotiations it is crucial to understand the new decision-making process under the Lisbon Treaty involving both the Parliament and the Council. In a recent post, I set out my understanding of the process, based on the assumption shared by most commentators (for example, see this Brussels briefing) that the Parliament would vote in plenary on its position on CAP reform in March, thus making a first reading agreement impossible.
I now think another scenario is more likely, namely, that COMAGRI will appoint its formal trilogue negotiating team at its next meeting in a week’s time based on the mandate arising from the voting on the compromise amendments.… Read the rest

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Forum on CAP reform

I did not get time before Christmas to draw attention to the Forum on the Common Agricultural Policy after 2013, a series of articles on the CAP reform process published in the Nov/Dec issue of Intereconomics. This is a review of European economic policy published jointly by the Centre for European Policy Studies and the Leibniz Information Centre for Economics. I contributed one of the articles, and the contributions of my colleagues are uniformly excellent even if they take different views on some of the main issues.
The full list of contents is as follows:
Jean-Christophe Bureau Where is the Common Agricultural Policy heading?… Read the rest

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Welcome to the Irish Presidency

Ireland took over the EU Presidency from 1 January 2013 and the Irish Minister for Agriculture, Food and the Marine, Simon Coveney, will chair the Council of Agricultural Ministers for the next six months. Coveney is an energetic Minister and the Irish have an experienced bunch of officials (see who’s who in the Irish delegation) who will do everything to ensure an agreement on CAP reform on their watch.
Securing an agreement under the Irish Presidency is conceivable. But I am going to argue that the institutional decision-making process between the Council and the Parliament, as well as the linkage with the Multi-annual Frinancial Framework (MFF) negotiations, will make it extraordinarily difficult, even assuming that the European Council will reach an agreement on the next MFF at its next meeting on 7-8 February 2013.… Read the rest

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Cyprus Presidency progress report on CAP reform – direct payment controversies

When the Agricultural Council meets tomorrow and Wednesday (18-19 December) it will discuss the Cyprus Presidency’s progress report on CAP reform. As the first day of the December Council is devoted to the annual bargaining over fish quotas, this report will be presented in a public session (with web streaming) on the morning of Wednesday 19th.

The progress report is drawn up by the Presidency on its own initiative and summarises the main amendments to the four main CAP regulations as well as outstanding issues which are left for the Irish Presidency to resolve. As it is highly unlikely that the Irish Presidency will revisit issues unless they are expressly identified as unresolved (in square brackets), the progress report and the accompanying amended draft regulations give us a good idea of the evolution of the Council’s thinking since the end of the Danish Presidency last June.… Read the rest

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Correction: Rural development funds allocation

There has been much interest in the provenance of the figures on the allocation of rural development funding between member states which I discussed in this post earlier this week. In the post I said that these were figures circulated by Herman van Rompuy during the special European Council meeting to discuss the MFF on November 22-23. Having spoken with some people who were present at the Council meeting I can now confirm that Van Rompuy did not circulate these figures at that meeting. I believe the figures were prepared by well-placed sources but they are not official figures and I regret any confusion which my incorrect assignation may have caused.… Read the rest

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Understanding the 'active farmer' debate

When COMAGRI publish their compromise amendments to the Commission’s draft revised CAP regulations, one issue to look out for will be the proposed definition of active farmers. This has been a difficult area in the direct payments regulation dossier because the issue of how to define an active farmer goes to the heart of the decoupled nature of the SPS system.

The item is on the reform agenda because of repeated criticisms of the Court of Auditors, first in the context of its report on SPS implementation and more recently in its report on SAPS implementation in the new member states.… Read the rest

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Rural development funds allocation hits new member states

Update 15 December 2012: I have now learned that I was incorrect to attribute the table of allocation of rural development funds to Van Rompuy in this post and these figures were not circulated at the European Council meeting as I suggest. I regret the error but I have left the post stand unedited as an example of one possible distribution of funds being discussed in the negotiations. But as of this date no official proposed allocation has been made, see fuller discussion here)

In previous posts I had wondered how member states were expected to come to an agreement on the MFF for the 2014-2020 period at the special European Council meeting at the end of the November without being aware of the proposed allocation of Pillar 2 rural development funds under the CAP.… Read the rest

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Council debate on greening raises more questions than answers

Watching the videostream of the Agricultural Council’s greening debate held earlier this week was a rather depressing experience. There is something profoundly wrong with a decision-making system where food and agricultural policy is determined solely by agricultural ministers who speak on behalf of their farmers only, with only the Commission present to even vaguely represent the other interests who have a legitimate right to be heard, including taxpayers, environmentalists and those interested in the impact of EU policies on developing countries

At least in the Parliament, despite the enormous power of COMAGRI under the Parliament’s rules of procedure, final decisions are taken in plenary session where all interests (with the possible exception of taxpayers, as the Parliament does not face an effective budget constraint) are represented.… Read the rest