Brussels, 20/06/2016 (Agence Europe) - At a meeting in Strasbourg on Monday 6 June, many MEPs on the European Parliament's agriculture committee regretted the lack of ambition or and innovation in the draft own-initiative report by Angélique Delahaye (EPP, France) on Common Agricultural Policy (CAP) tools to reduce volatility of prices on the agriculture markets (see EUROPE 11564).
Delahaye noted that she didn't want to discuss in her report the topics of crisis management and price formation (the low prices on some agriculture markets). Instead, she wants to focus on: - contractualisation and structuring; - the introduction of risk management tools, such as insurance systems and/or mutual funds to ensure stable revenue for producers; - transparency on the markets. Delahaye unveiled the timeline for adopting the report - 8 November by the EP's agriculture committee and December by the EP plenary.
Several MEPs felt that the draft report was a mismatch with reality and didn't have any practical solutions for improving the situation for farmers.
Nicola Caputo (S&D, Italy) stressed the need to develop risk management tools, including mutualisation funds. He said the income stabilisation tools tested in Italy and Belgium were a great innovation and he also defended the idea of contracyclical aid (see EUROPE 11563 for the French proposals in this domain). Caputo regretted that the draft report does not make much mention of innovative instruments or the role the EIB could play, for contracyclical instruments, for example.
A French MEP from the 'Europe of Nations and Liberties' even said than the report was as empty as French farmers' bank accounts.
Far more diplomatic, Eric Andrieu (S&D, France) said that the draft report only 'partially' dealt with the problems faced by farmers. He said tools for tackling price volatility should be more extensive than those listed in the draft report at this stage. Andrieu is planning to submit amendments to add to the tools for tackling price fluctuations. He criticised Delahaye for only presenting private regulation tools because he said solutions could also require a degree of public funding.
Marc Tarabella (S&D, Belgium) was very critical, describing as ultra-liberal the experts consulted by Delahaye to contribute to the debate about price volatility. He said it would be better to do nothing rather than produce a report that doesn't deal with low prices. He said that insurance was one possible solution, but there are others, too, and solutions have to be found. He thought a majority would emerge at the agriculture committee to supplement the draft report with amendments and compromises.
Martin Häusling (Greens/EFA, Germany) said the report didn't go far enough with regard to the current situation as a crisis was about to break out on the sugar market and there weren't enough measures in the CAP to deal with the problems. He didn't have much faith in insurance because it's possible to ensure against hailstorms but not against a Russian embargo or the weakness of the Chinese market. Luke Ming Flanagan (GUE/NGL, Ireland) said something had to be done to reduce the size of supermarkets. Giulia Moi (ELDD, Italy) said farmers couldn't wait any longer and more transparency and inspections are needed to avoid fraud.
Clara Eugenia Aguilera Garcia (S&D, Spain) said market management mechanisms were needed, adding that she had little faith in private regulation.
Esther Herranz Garcia (EPP, Spain) agreed with the three strands of the draft report and pointed out that an insurance system works well in Spain. She said new impetus should be given to contractual relations in the various stages of the food supply chain and a European monitoring centre set up for fruit and vegetable prices.
Elisabeth Köstinger (EPP, Austria) said that the EP needed to be “bold” on these issues, and highlight the role the EIB could play. She said the focus should be on young farmers and startups.
The European Commission admitted that some risk management tools in the CAP were not being used sufficiently in the member states.
This is not a report about an overhaul of the CAP, explained Delahaye, the rapporteur. She said that there is also volatility when prices are high, but the scale hides an average of prices that are falling. She is counting on amendments from her colleagues to find the right tools, including new tools. She ended by adding that her report wasn't dealing with transparency in the supply chain (a subject for which Mairead McGuinness is rapporteur). (Original version in French by Lionel Changeur)