Tag: cap budget

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Agreeing the allocation of CAP funds between Member States

The great bulk of EU CAP expenditure (the Heading 2 ‘Preservation and management of natural resources’ in the 2007-2013 Multi-annual Financial Framework) is allocated to member states in the form of national ceilings under Pillar 1 and national breakdowns under Pillar 2. One of the reasons for the success of the Fischler and Health Check reforms was that they did not fundamentally alter the allocation of member state receipts.

Redistribution a central issue in CAP 2020 negotiations

The distribution of CAP funds between states is now a central issue in the CAP negotiations given the commitment to bring about greater convergence in the level of entitlement payments per hectare.… Read the rest

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The future of direct payments

As Valentin’s blog post yesterday explains, the CAP is not only a European agriculture policy, it’s a European income redistribution policy. The centrepiece of the CAP is the €42 billion a year in ‘direct aids’ or income support to farmers, funded entirely from the pooled EU budget. Valentin points out that in an era of fiscal austerity, the idea of billions of euros moving from one country’s taxpayers to another country’s farmers is likely to be politically controversial. Particularly when the biggest payouts go to Europe’s wealthiest citizens and most profitable companies.

As national governments decide by how much they are going to pay of nurses and school teachers, how many university places they will cut and which taxes they are going to have to increase, the idea that aids to farmers are ringfenced from cuts will come as a surprise to many.… Read the rest