Brussels, 15/10/2014 (Agence Europe) - In the amending letter no. 1 for the 2015 budget, which was published on Wednesday 15 October, the additional available revenue to fund the common agriculture policy (CAP) stands at €465 million. A windfall which the farmers have been relying on to offset the Russian ban brought in at the start of August on agricultural products from the EU.
The problem is that in times of budgetary austerity and when the EU budget is being stretched to its limits by a series of humanitarian emergencies (such as Syria and the Ebola outbreak), the Commission will be ventilating most of this money outside of the CAP, leaving agriculture with just €17 million of the €465 million in additional revenue.
The Commission has no choice but to mobilise the 'agricultural crisis reserve', with its €433 million for 2015. But in order to feed into this reserve, the level of direct payments to farmers will have to be trimmed by 1.3%.
Since the Russian ban entered into force, the Commission has already announced support measures in favour of the horticultural and dairy sectors to a total of €344 million (€125 million for the first fruit and vegetables plan, €165 million for the second, €33 million for peaches and nectarines, €20 million for the private storage of dairy products). As these amounts will be taken from the crisis reserve, there will be just €88 million left to pay for additional new support measures in favour of the Baltic states and Finland (targeted aid in the dairy sector: see EUROPE 11176).
In detail, the draft EU budget for 2015 provides for €1,030 billion in assigned revenue (clearance of accounts + €110 million from the dairy super-levy). The amending letter confirmed an increase in assigned revenue by €465 million, mainly due to a higher (€295 million more) level of super-levy. However, this money will not be earmarked for agriculture. (LC)