Climate and environment in the Commission’s CAP proposal

There has been considerable speculation since publication of the Commission’s proposals for the MFF and for the CAP 2028-2034 in July for what they might mean for climate and environmental ambition in the next programming cycle. The Commission’s Vision for Agriculture and Food Communication had underlined that the call in von der Leyen’s Political Guidelines for “a better balance between incentives, investments and regulation” should be interpreted as giving greater flexibility to farmers and shifting from conditions to incentives. To achieve the same level of climate and environmental ambition through a voluntary approach only using incentives implies the need for significant additional resources.… Read the rest

Negotiating the Member State allocations in the next MFF

Negotiations on the EU’s Multi-annual Financial Framework (MFF) take place within the General Affairs Council of the European Union. Ultimately, the final decisions are taken by the European Council of Heads of State and Government and must also receive the consent of the European Parliament. There are many points of friction, including the overall size of the MFF, its allocation across headings, and the question of own resources and how to finance the budget. Traditionally, there is a specific focus on the pre-allocated amounts as these are a significant determinant of the net balance between receipts and contributions for individual Member States – often referred to as the focus on juste retour in the MFF negotiations.… Read the rest

Commission proposal could allow significant increase in CAP basic payments in many countries

Initial reactions to the publication of the Commission’s proposals for the next CAP and their budgetary implications focused on the overall reduction in the CAP budget for income support (the minimum €296 billion ring-fenced within the National and Regional Partnership Fund). In a previous post, I calculated this reduction to be 15% on a like-for-like basis compared to the current income support under the CAP in current prices. Making a comparison with the current total CAP budget will depend, in addition, on how much Member States will allocate to the non-income support elements of the CAP (including, for example, Co-operation projects (LEADER, EIPs) as well as Knowledge Exchange (AKIS)), which cannot be known at this stage.… Read the rest