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Europe Daily Bulletin No. 11825
SECTORAL POLICIES / Agriculture

Hogan admits that Brexit will mean tough budgetary decisions

At a conference in Brussels on Friday 7 July on the common agricultural policy (CAP) after 2020, European Agriculture Commissioner Phil Hogan said that, as a result of the United Kingdom’s withdrawal from the EU, tough budgetary choices will need to be taken.

The public consultation which has just been held and the conference on 7 July will inform the Commission’s preparation of the communication on the future of the CAP, due to be published before then end of the year.

Among the challenges to be met, Hogan highlighted the consequences on the European budget and on trade agreements of the United Kingdom’s exit from the EU. “The financial consequences of Brexit need to be taken into account and difficult budgetary decisions will have to be made”, he stated in reference to last week’s reflection document on the future of the EU budget (see EUROPE 11823). “Some of the scenarios that it contains are worrying but it’s a reflection document which includes all possible options, including CAP reform”, the commissioner said. He made the point that, at this stage, it was only a reflection document (formal proposals on the next financial framework are expected in May or June 2018) and that “it’s the member states and the European Parliament who make the decision on the EU budget”.

He noted other challenges, including the climate commitment made, generational renewal, simplifying rules and performance.

Better news on markets. Agricultural markets, which suffered badly between 2014 and 2016, would seem to be recovering, “but millions of farmers are having difficulty in getting back on their feet”, the commissioner noted. He argued for “more instruments to improve market resilience”.

Hogan also stressed the need to improve “the sustainability of food production in Europe” and to look at the contribution made by farmers to the rural environment and to society in general. The challenge of generational renewal is one that will have to be addressed some member states. The number of young farmers in the EU fell from 3.3 million in 2005 to 2.2 million in 2013 (see EUROPE 11819).  (Original version in French by Lionel Changeur)

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