Addressing EU ministers for agriculture meeting in Brussels on Monday 19 February (see EUROPE 11935), European Commissioner Phil Hogan set out the broad lines of greening provisions within the framework of the future CAP post-2020. On one hand, he proposes “new conditionality” of aid and, on the other, voluntary provisions for encouraging farmers to go further than the base frame.
The current CAP is “less ambitious than planned” from an environmental point of view as well as being “highly complex”, the commissioner summed up. In his view, the new CAP should be more ambitious and focus more on results regarding efficiency of resources, environmental protection and climate action while taking local conditions into account. Member states are therefore developing a set of compulsory and voluntary measures in the two CAP pillars and will define minimum compulsory practice more precisely, i.e. conditionality, explained Phil Hogan. The new, more flexible conditionality (mainly regarding management, controls and sanctions) will replace the current dual system (with a set of rules for conditionality and another for greening). The European Commission must adopt its legislative proposals on the future of CAP by June this year.
Such precisions were generally welcomed by member states that, on the whole, want more flexibility, although some do continue to fear competition distortion within the single market. On this matter, Christian Schmidt of Germany stressed strict performance indicators should be fixed at European level to prevent competition distortion. Stéphane Travert, of France, suggested a three-tier architecture (instead of two-tier as in the Commission’s proposal), saying that a “mass” greening instrument set in place by all member states was necessary in the first pillar.
Ceiling, redistribution and degressivity
The exchange of views between EU28 ministers also covered direct payments and payments coupled to some productions and rural development. The countries of the Visegrad group (Czech Republic, Poland, Hungary and Slovakia) plus Croatia presented a joint statement in this framework. In addition, Poland defended a contribution underlining the importance of structural funds for agricultural policy.
Discussion on direct payments focused on means of implementation to ensure better focus on those most in need, mainly the “real farmers”, young farmers and small and medium-sized businesses. Commissioner Phil Hogan cited a “non-exhaustive” list of measures: a compulsory ceiling of direct payments taking labour into account to avoid the adverse effects of employment; a redistributive payment in order to give more targeted support to small and medium-sized farms, possibly combined to degressive payments for reducing support to large farms. Most of the member states agreed that such instruments should remain voluntary.
The member states in which the level of support is below the European average (the Baltic States, Romania, Slovakia, Poland, etc.) called for convergence of support levels per hectare at EU level. Some, such as Denmark or the Netherlands, are firmly opposed to this.
Coupled support supported
The debate on coupled payments resulted, as is often the case, in quite a marked division between those defending the measure and those against. However, most delegations consider that this kind of support is necessary to help the fragile or strategic sectors - “in particular, in the light of growing market opening and the conclusion of a series of free trade agreements” as the Bulgarian presidency said in its conclusions.
Finally, with regards rural development, “simplification is the key word” said Elisabeth Köstinger, the new Austrian minister for agriculture, who will take on the presidency of the Agriculture Council during the second half of 2018. France called for a sufficient transition period in order to prevent payment delays for farmers. Also, many delegations (Germany, Czech Republic), underlined the need to avoid duplication between rural development measures and the other CAP provisions.
On the basis of this debate and discussions at the Special Committee on Agriculture to be held during coming weeks, the Bulgarian presidency trusts it will be able to have conclusions adopted by the Council on the future CAP during the Agriculture Council scheduled for 19 March. (Original version in French by Antonin Garnier)