Brussels, 28/05/2010 (Agence Europe) - European agriculture ministers will gather in Mérida, Spain, from Sunday 30 May to Tuesday 1 June for a meeting, the main item for which will be the future of the common agricultural policy (CAP) after 2013, when the current EU financial framework comes to an end. The informal ministerial meeting will be chaired by Spanish minister Elena Espinosa. In a working paper, the Spanish Presidency of the EU Council of Ministers suggests approaching the debate from the point of view of the contribution agriculture and the agrifood industry can make to the 2020 strategy which the EU is putting in place at the moment, the priorities, challenges and instruments for the post-2013 CAP, and strengthening governance.
In a press release, the Spanish Environment and Agricultural Affairs Ministry says: “The priorities of the CAP after 2013 which will be discussed at the informal ministerial meeting in Mérida will be economic growth and employment, food security and green growth”. Ministers will also discuss direct aid, market management instruments, rural development and the new concerns in each of these areas. “The Spanish Presidency considers that it will be necessary to re-affirm the need for a strong CAP and to improve coordination with other Community and national policies and initiatives,” the Ministry press release goes on.
The debate among ministers on the future of the CAP will take place on Tuesday 1 June, with Sunday and Monday being given over to various receptions and visits to farms.
EU 2020 strategy and agriculture. “Agriculture and the CAP cannot be left outside the EU 2020 strategy,” the Spanish Presidency says in the working paper which will act as a basis for discussion. That is also the view of the European Commission which launched a public debate on the future of the CAP to help it draft a communication on the CAP post-2013. The European Council, at its meeting on 25-26 March 2010 (see EUROPE 10107) stated that all common policies, including the CAP, would need to support the strategy. (“A sustainable productive and competitive agricultural sector will make an important contribution to the new strategy, considering the growth and employment potential of rural areas while ensuring fair competition,” the Council conclusions state). During their debate on 29 March (see EUROPE 10109), most EU agriculture ministers stated that agriculture had a role to play in delivering the main objectives of the EU 2020 strategy - intelligent growth (better use of natural resources), sustainable growth (through, for example, bio-energy) and inclusive growth (maintaining jobs and people on rural areas).
The Presidency paper highlights the need to transform agriculture to make it better adapted to the difficulties it is experiencing (price volatility, average fall of 12% in agricultural incomes between 2008 and 2009, 10% fall in consumption over the last two years, ageing and increasingly male rural population, structural problems, etc). The text notes that, in the EU, 13.6 million people are directly employed in the agriculture sector, forestry and fisheries, with another 5 million in the agrifood industry, accounting for 8.6% of all jobs in the EU and 4% of its GDP.
Priorities, challenges and instruments for post-2013. According to the Spanish Presidency, the new direct aid system for farmers will have to pay greater attention to: - the challenges of food security (while retaining a market-oriented production structure); - economic growth in the European agrifood industry (while helping to stabilise farmers' incomes); - growth in jobs in agriculture and the food sector; - the economic, environmental and social sustainability in European agriculture (while contributing to adaptation to, and tackling, climate change. Spain says the new aid scheme will need to be “flexible enough” to respond to the different economic and agronomic situations within the Community, whist taking into account the priorities to be addressed. The direct aid scheme accounts for over 25% of agricultural income within the EU. “It would be difficult to maintain viable and sustainable operations without retaining at least the current level of support,” the Spanish Presidency says.
The Presidency considers that market and crisis management instruments after 2013 will have to: - improve the functioning of the food supply chain and transparency in price formation; - strengthen producer organisations and inter-branch organisations; - consider a system of earnings or income insurance for farmers, assessing the problems of efficiency and viability and also WTO compatibility; - examine common groundrules to ensure that third country and European products are on an equal footing as regards compliance with the increasing number of health and safety and environmental requirements. According to the Spanish Presidency document, there is also a need for instruments that allow a swift and effective response to serious sectoral crises. In rural development in the period after 2013, priority should be given to enhancing competitiveness, aid to help young farmers set up, initiatives that encourage agriculture to play an active part in efforts to combat climate change and to adapt to it, and support that allows agriculture to meet other challenges (management of natural resources, preservation of the biodiversity and protection of the environment)
In terms of governance, the Spanish Presidency suggests improving coordination between the agricultural policy and other Community and national policies (research, education, employment, etc).
Competitiveness of the agricultural sector. The experts on the Special Committee on Agriculture (SCA) will also meet in Mérida on Monday 31 May to discuss the impact of Community rules on the competitiveness of the agricultural sector. (L.C./transl.rt)