Friday

29th Mar 2024

Brussels keen to limit EU payments to large farmers

  • Europe's farmers have also been hit by the global economic downturn (Photo: Rossen Kalpachki, Trud Daily, Bulgaria)

The European Commission has indicated its willingness to limit payments to some of Europe's largest farmers under upcoming reforms to the bloc's common agricultural policy (CAP), a move that could prove controversial in a number of member states.

Launching a public debate on Monday (12 April) on the future shape of the CAP, EU agriculture commissioner Dacian Ciolos said he was willing to take a fresh look at the subject, two years after national governments rejected a similar proposal.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"I will be addressing this problem as part of the debate [on CAP reform] and it's something I will put to the council [representing member states] and the European Parliament in due course," Mr Ciolos told journalists in Brussels.

The Romanian politician signaled the move would come as part of wider overhaul of the EU's system of direct payment to farmers, with any changes set to kick in from 2014 onwards, once the union's current budgetary period (2007-2013) comes to an end.

The future shape of Europe's expensive agricultural policy has already provoked heated debate across the union.

CAP payments amount to approximately €55 billion a year, more than 40 percent of EU's entire annual budget or around €100 a year for each EU citizen, says the agricultural watchdog organisation Farm Subsidy.

While many small-scale farmers rely on the EU funding just to survive, revelations that some large-scale commercial businesses receive annual payments of over €500,000 caused a public outcry last year when details were published on the internet for the first time.

But a commission proposal in late 2007 to limit farm payments to a maximum of €300,000 was not supported by a majority of EU member states, with countries containing large farms such as the UK and Germany raising concerns. A number of smaller restrictions were implemented however.

EU farming umbrella group COPA says it is against any limitations on EU direct aid to farmers, irrespective of farm size. "If farmers deliver public goods [such as land stewardship], then their payments should be proportional," the organisation's secretary general Pekka Pesonen told EUobsever.

"A payment cap would discourage farmers from increasing the size of their farms, distorting competition and limiting the willingness of farmers to make investments," Mr Pesonen added.

Timetable

The commission hopes to receive submission's from a wide array of societal groups and individuals in response to its launch of the public debate on the future role of the CAP.

The EU executive says these suggestions will then feed into a communication on CAP reform towards the end of this year, with legislative proposals set to come forward in 2011.

"We must strengthen the links between farming and consumers' expectations. Strengthen the links between farm production and local, regional and international markets," Mr Ciolos told MEPs later on Monday.

Countries with strong farming traditions have typically supported the EU's interventionist policy, with French agriculture minister Bruno Le Maire recently signaling his country's intentions to oppose any major reform that could hurt French farmers.

Victory for the UK's Conservative party this May, and a change of government in the Netherlands following June elections could have important implications for the EU's 2014-2020 budget, and subsequently also for the CAP.

Last week the Dutch liberal VVD party signaled it supported cutting the country's EU payments by almost half.

Opinion

EU Modernisation Fund: an open door for fossil gas in Romania

Among the largest sources of financing for energy transition of central and eastern European countries, the €60bn Modernisation Fund remains far from the public eye. And perhaps that's one reason it is often used for financing fossil gas projects.

Opinion

EU Modernisation Fund: an open door for fossil gas in Romania

Among the largest sources of financing for energy transition of central and eastern European countries, the €60bn Modernisation Fund remains far from the public eye. And perhaps that's one reason it is often used for financing fossil gas projects.

Latest News

  1. Kenyan traders react angrily to proposed EU clothes ban
  2. Lawyer suing Frontex takes aim at 'antagonistic' judges
  3. Orban's Fidesz faces low-polling jitters ahead of EU election
  4. German bank freezes account of Jewish peace group
  5. EU Modernisation Fund: an open door for fossil gas in Romania
  6. 'Swiftly dial back' interest rates, ECB told
  7. Moscow's terror attack, security and Gaza
  8. Why UK-EU defence and security deal may be difficult

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us