Brussels, 14/12/2012 (Agence Europe) - Given the lack of agreement on the multiannual financial framework (MFF) for 2014-2020, the Cypriot Presidency of the Council of the EU will simply submit to EU27 farm ministers at their meeting in Brussels on Tuesday 19 December a progress report on reform of the Common Agricultural Policy (CAP), which will be discussed next year under the Irish Presidency which takes the reins on 1 January. Other issues on the agenda of the final Council meeting of the year include a conclusions document on a high-level group's work on vineyard rights.
Cyprus is chairing its last Agriculture Presidency on 18 and 19 December before handing over to Ireland and regrets not being able to win the hoped-for basic agreement on reform of the CAP. Given the absence of an agreement on the MFF by the heads of state, agreement on the CAP was “mission impossible” because many parts of the direct farm payment talks depend on the MFF negotiations, such as convergence of aid among the member states, caps on aid for big farms, the “greening” of aid and flexibility between the two CAP pillars (in other words, direct aid under the first and rural development under the second).
Aside from this, the details of internal convergence of direct farm aid are one of the main concerns of the member states, explains the Cypriot Presidency in the progress report. Several suggestions were submitted to the Council by groups of countries but consensus does not yet seem to be emerging. Basically, countries are asking for greater flexibility in both the speed and scale of the re-jigging.
Member states are also divided about measures for young farmers, with a number of countries wanting the measures to be optional. On greening, the idea of equivalence has been welcomed by the delegations, although how exactly is would apply remains to be seen.
On the Common Organisation of the Market Regulation, reference prices need to be decided upon, says the presidency. Some countries want it to be made possible to update prices as necessary, but a significant number of delegations oppose this because of the costs this might involve for the EU. Compulsory recognition of producer (farmer) organisations (PO), associations of producer (farmer) organisations and other such groupings is also an area of division. The Cypriot Presidency admits that it has not managed to get delegations to see eye-to-eye at all, despite some compromise proposals (such as the obligation to recognise OP but not OP associations). Against this backdrop and under pressure from a large number of countries, things have been left as they are in the draft CAP reform (compulsory recognition of OP in dairy and horticulture), but talks will need to resume on this. The progress reports says that a number of delegations want to discuss the idea of extending beyond 2015 the system of sugar quotas.
The most significant progress has been made on the Rural Development Regulation. Talks seem to have been conclusive on thematic programmes and eligibility rules for forests, but main questions remain undecided. The basic rules for the payment of agri-environmental measures cannot be finalised until the greening of direct payments has been settled. Definition of areas with a natural handicap suggested by the European Commission (with eight biophysical criteria) has been roundly criticised by the member states demanding greater flexibility. Risk management and stabilisation of income, as suggested by the Commission, have been challenged by some countries on the grounds that this should come under the first pillar (direct aid and market expenditure), but the Cypriot Presidency does not want to amend the Commission draft, wishing to avoid upsetting the balance of the Commission's document. Investment in irrigation is in dispute over the water use savings that would make irrigation eligible for aid.
On the fourth arm of the reform, the “horizontal” regulation, the main outstanding issue is fines on farmers who fail to respect the greening rules. The European Commission says the fines should potentially be greater than 30% of greening, but member states want fines to be over 30% only for serious fraud. Another area of division is publishing details of recipients of CAP aid.
Other issues on the Council agenda. Four “other business” points will be discussed at the Council. The European Commission will brief ministers on the conclusions of its report following the latest high-level group meeting on the rights to plant vines.
A common statement will be issued by Bulgaria, the Czech Republic, Hungary, Latvia, Poland, Romania and Slovakia on combined aid, for which they want the possibility of remaining at 20%.
Ministers will be presented with the outcome of a conference on the movements of exotic animals organised by the Cypriot Presidency and the European Veterinary Federation.
The final point will be taxes on sugar production from 2002 to 2006. (LC/transl.fl)