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Europe Daily Bulletin No. 10325
Contents Publication in full By article 20 / 37
GENERAL NEWS / (eu) eu/agriculture

Debate on draft CAP reform conclusions

Brussels, 28/02/2011 (Agence Europe) - On Monday 28 February, EU member states debated the draft conclusions submitted by the Hungarian Presidency on the reform of the common agricultural policy (CAP) after 2013. Discussions within the Special Committee on Agriculture (SCA) focused mainly on direct payments, some market measures and the greening of some agricultural aid (EUROPE will cover the SCA discussions in greater detail at a later date).

The draft conclusions could arouse quite a number of reactions and the Presidency will have great difficulty in achieving consensus on a text which is due to be adopted by European agriculture ministers on Thursday 17 March. If no consensus can be reached, the text will become Presidency, rather than Council, conclusions - and consequently will carry less political weight.

The draft text mentions the need for direct payments to be shared fairly among countries, with pragmatism in the objective allocation criteria and a phasing-in of the changes. According to the text, countries will be able to focus aid more on small-scale farmers and working farmers. Voluntary support measures could be taken by countries as part of their national envelopes. The draft text notes the opposition from some countries to a capping of the aid received by large farms.

Greening of the CAP. The CAP already contains measures to protect the environment but the Council goes along with the principle of further greening the CAP by 2020, so long as any measures taken are simple and avoid any overlap between the pillars (the first contains direct aid and market measures and the second rural development). Support for areas at a natural disadvantage should remain part of the second pillar, the draft text says, and any further aid for these least-favoured regions under the first pillar must be assessed. Some countries (the newer member states) continue to call for the Single Area Payment Scheme (SAPS) to be retained after 2013.

Market measures and risk management. Existing market measures (intervention, storage) should continue to constitute a necessary safety net, the draft conclusions state. Countries also would like a (voluntary) toolbox, containing risk management measures, the Presidency says. It indicates that these instruments will have to be compatible with the WTO Green Box (aid which does not distort competition). There is mention, too, of the need to improve the functioning of the food supply chain and of extending the approach proposed for the milk sector to other sectors.

The text highlights the importance of, and the need to simplify, rural development policy so that it better responds to regional and local needs. The Presidency says that development of direct sales and small-scale production for local markets is an option. EU agriculture is part of the solution on climate change, the draft conclusions argue. (L.C./transl.rt)

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