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Europe Daily Bulletin No. 10549
Contents Publication in full By article 11 / 39
SECTORAL POLICY / (ae) agriculture

Common Franco-German position on farm policy reform

Brussels, 08/02/2012 (Agence Europe) - European Commission proposals on the reform of the common agricultural policy (CAP) will, if taken up, usher in radical changes to European agriculture, France and Germany agreed at the 14th Franco-German ministerial council, which took place on Monday 6 February. On 14 September 2010, the two countries brought forward joint proposals on a strong CAP.

The European Union needs a strong CAP after 2013, France and Germany say in a statement. They argue that resources must “match our level of ambition”. Agriculture needs stability and visibility. A final decision on all finance issues will come once decisions have been taken on the body of policies and the overall financial framework of the EU, the two countries note.

At a time when negotiations on the reform “are entering a crucial phase”, France and Germany have set out their common positions on a number of points. The proposal to redistribute aid among member states as made by the Commission enhances the legitimacy of the CAP while taking account of the differences of economic conditions from one state to another. Any redistribution of direct aid among member states must be “progressive and limited in extent, without upsetting the internal balance of the European Union and as part of a comprehensive approach encompassing the CAP's two pillars”, say France and Germany. The greening of direct aid is “an opportunity for the sustainable development of European agriculture”. However, some of the arrangements proposed by the Commission “carry the risk of not being properly suited to the economic realities of agriculture and to the challenges it will have to face”. The two say, then, that discussion will have to continue on defining greening criteria and on agri-ecological infrastructure. In addition, the Commission proposals must be “improved”: to increase the potential of pasture raising, to support new systems of sustainable production, to simplify conditionality, to find pragmatic solutions for certain types of farming and, more generally, to reduce costs through cutting red tape. The Commission proposes a process of convergence of aid among farms within a member state or region. The purpose of this process, France says, must be to improve the fairness of the aid. It must, however, take account of the economic reality of the farms and the great variety of situations in which they find themselves, and it must be left substantially to member states to decide on how things are done. The same subsidiarity principle and consideration of regional differences must “guide us” in deliberations on the Commission proposals on capping, defining areas of natural constraints and mountainous areas, arrangements specifically for small and young farmers, defining “active farmers” and specific aid for sensitive sectors. Current market instruments (such as, intervention and private storage) form part of a safety net designed to protect the agriculture sector from major crises in Europe, the Franco-German statement says. Some instruments can still be improved, making them more effective, and it is “essential that, in the event of a crisis, funds can be called on and be quickly available”. Discussion on the date for ending sugar quotas (the Commission proposes 2015) must be continued “so as not to endanger the adaptation process”. Planting rights in the wine sector must be kept in place, France and Germany insisted.

The two countries are of the view that the position of producers must be strengthened, without its leading to any competition distortions within the internal market, however. They say that “it is important, with regard to EU standards, to be aware of the need for a level playing field in competition between EU and third country producers, ensuring that consumer demands and all of society's concerns, such as quality, health, the environment and animal welfare, are taken into consideration”.

The French and German governments will pursue their dialogue throughout the negotiations. They have pledged at the same time to continue exchanges between the two countries' agricultural organisations. (LC/transl.rt)

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