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EU budget review cautious on future spending priorities

The Commission has published its long-delayed budget review which follows a public consultation on the EU budget which began as a mid-term budget review in 2008-09. An earlier version leaked last year, and apparently drafted by Commission President Barroso’s advisers (see Jack Thurston’s post on this), recommended specific targets for the reallocation of EU spending, including a reduction in agricultural spending to around one-third of the budget.

The review published today is a more anodyne document, and it shies away from making specific recommendations on which expenditure areas might see their budgets cut. In this it closely resembles the leaked document on CAP reform put into the public domain earlier this month and which also summarises the conclusions of a public consultation. Indeed, the budget review document is even less prescriptive in that it does not even attempt to sketch out alternative models for the financial perspective period. The document makes the usual rhetorical references to the need for the budget to reflect EU priorities (particularly the 2020 strategy), to concentrate on areas where there is European value added, and to allocate resources on the basis of results.… Read the rest

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Commission leaked draft fails to advance reform debate

The draft Commission communication on the CAP towards 2020 is an underwhelming document, not just for those seeking to push an ambitious reform agenda but also for those seeking a roadmap to address issues that the Commissioner himself has identified as up for discussion. As Mairead McGuinness, the Irish MEP, commented, it lacks both detail and substance, and is devoid of both figures and analysis.

Nonetheless, it does contain some clues on what DG Agri might like to see in the final package, however cautiously they are expressed. The language used does nudge the debate on the future CAP in slightly different directions to the current CAP. The document is now in inter-services consultation, and the comments of other Commission DGs such as Budget, Finance, Trade and Environment have yet to be incorporated. Assuming that these DGs have been kept in the loop as the document was drafted, their comments are unlikely to modify it in any major way before its publication due next month.… Read the rest

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The circle that cannot be squared

An extended guest post by Jorge Núñez Ferrer , takes a close look at the leaked commission communication on the future of the CAP. Dr Núñez Ferrer (pictured, right) is Associate Research Fellow at the Centre for European Policy Studies and has written widely on the CAP and the EU budget

The CAP 2020 reform philosophy has finally seen the light, albeit only in leaked form. A carefully drafted document contains the usual CAP rhetoric punctuated by some apparently strong deviations from past doctrine. But once the objectives and policy proposals are reduced to their basic components, much of the fizz disappears.

Looking beyond the politically correct drafting and generalisations (and the inevitable linguistic awkwardness of an English text primitively translated from the French of the original draft), one finds the following objectives and reasoning as the guiding principles and motives:

The CAP should ensure that agricultural production across the whole European Union is maintained and even enhanced.… Read the rest

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The Commission communication leak in full

PDF to download. Main text (without footnotes and annex):

EUROPEAN COMMISSION

Brussels, 2910912010
COM(2010) version finale

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future

1. INTRODUCTION

The Common Agricultural Policy (CAP) is confronted with a set of challenges, some unique in nature, and most unforeseen, that invite the EU to make a strategic choice for the longterm future of its agriculture and rural areas.

In preparation for this Communication, the Commission organised an extensive public debate earlier in 2010 that concluded with a conference in July 20101¥ The Council discussed during four successive Presidencies the reform, the European Parliament (EP) adopted an own initiative report on the post-2013 CAP, and its link with the Europe 2020 Strategy and both the Economic and Social Committee and the Committee of the Regions (CoR) have come forward with position papers.… Read the rest

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Rural development & regional policies

RuDI stands for “Rural Development Impacts” and is a consortium of 10 research institutes that has taken an in-depth look at the second pillar of the CAP, examining the rural development programs in all member states and conducting 20 case studies. In addition to calling for more effective use of policy evaluation and bottom-up processes (LEADER), they take issue with the excessive concentration of rural development on agriculture and insufficient integration with other regional policies.
They observe – and endorse – an emerging “new rural paradigm” which

is based on the notion of the multifunctionality of rural areas, where various sectors beyond agriculture are acknowledged to play a key role with regard to rural areas’ competitiveness, and where investments across sectors are considered to be a more appropriate tool than farm subsidies alone. This shift can also be viewed as a change from an exogenous model of Rural Development, emphasising policy interventions “from outside”, to a more endogenous approach based on the notion of Rural Development as a process involving multiple levels, dimensions and actors, that is also self-driven.

… Read the rest
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Rural development & regional policies

RuDI stands for “Rural Development Impacts” and is a consortium of 10 research institutes that has taken an in-depth look at the second pillar of the CAP, examining the rural development programs in all member states and conducting 20 case studies. In addition to calling for more effective use of policy evaluation and bottom-up processes (LEADER), they take issue with the excessive concentration of rural development on agriculture and insufficient integration with other regional policies.

They observe – and endorse – an emerging “new rural paradigm” which

is based on the notion of the multifunctionality of rural areas, where various sectors beyond agriculture are acknowledged to play a key role with regard to rural areas’ competitiveness, and where investments across sectors are considered to be a more appropriate tool than farm subsidies alone. This shift can also be viewed as a change from an exogenous model of Rural Development, emphasising policy interventions “from outside”, to a more endogenous approach based on the notion of Rural Development as a process involving multiple levels, dimensions and actors, that is also self-driven.

… Read the rest
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Franco-German position on future of the CAP

This week the governments of France and Germany have published a short document setting out their common position on the future of the common agricultural policy. It makes for fairly light reading though the following points are worth remarking on:

– The common position endorses further moves towards greater market orientation in the CAP but suggests countervailing measures are needed “to buffer devastating effects of growing price volatility and market crises”.

– There is nothing concrete on the future budget of the CAP and it is stressed that “a final decision on all questions relating to finances will be made when decisions are made on all policies and the entire EU financial framework”. In other words, there is not going to be another stitch-up like the Chirac-Schroeder deal of 2002 which effectively fixed the CAP budget for the next 11 years, short-circuiting the normal EU budget-setting processes.

– The two pillar structure of the CAP should be maintained, and no national co-financing should be required of pillar one expenditure (i.e.… Read the rest

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Public goods in the spotlight

What’s in a word? Or, to be more specific, two words? Where CAP and the term ‘public good’ is concerned, quite a lot. A new briefing note from the Institute for European Environment Policy takes a look at how the slogan ‘public money for public goods’ has come to define the political debate over the future shape of the CAP.

The briefing looks at the evolution of the idea of environmental public goods as a justification for future public expenditure on agriculture. It also sounds a note of caution, that’s worth repeating here:

The increasing visibility of the public goods concept however, has resulted in the concept being interpreted in different ways. It appears that there has been recognition of this agenda as one with real gravity and legitimacy, and therefore for political reasons some interests are trying to justify various aspects of current policy as conducive to, or essential for outcomes that they have presented as ‘public goods’.

… Read the rest
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Budget rumbles in Brussels

The summer break has come and gone and with the European Parliament back in session, Commissioners back from their yachts and their fonctionnaires back at their desks, the future of the EU budget is back in the spotlight.

As part of the December 2005 heads of government agreement on the 2007-2013 financial perspective it was agreed that there would be a midterm ‘budget review’ in 2008-09 which would look at all areas of the EU budget. including the two hottest political potatoes – the large share of funds going to the CAP and the British budget rebate. The review began with a big public consultation led by the then Budget Commissioner Dalia Grybauskaite, who pulled no punches in describing the budget as largely out of tune with Europe’s current and future challenges. However, she left the Commission early to become President of Lithuania and with delays to the Lisbon Treaty ratification the review process slowed to a standstill.… Read the rest

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Why are we so lousy at measuring farmers' incomes?

It has been heard and written everywhere for the last 18 months: farm incomes have gone down dramatically. After two years of carpet bombing by the media, with anything from 60 percent price fall in prices to desperate farmers spreading their milk in the fields, the consultation on the future of the CAP organized by Commissioner Ciolos suggest that many, in the civil society, are convinced that EU farmers are starving. As an external reviewer of the synthesis report of this consultation, I saw a large sample of individual contributions. My feeling is that for many people, the current low farm incomes justify subsidies, border protection and paying more attention to mechanisms to support farm prices. In France, the tone of the debates on the national agricultural law is such that for all journalists, and even more Members of Parliament, the current perception is that agriculture is a synonym for “lumpen proletariat”.… Read the rest