Discussions between EU Member States confirmed that there are differences of opinion on the sensitive issues of capping and degression of direct aid in the post-2020 Common Agricultural Policy (CAP). These issues will also be addressed in the negotiations on the EU's multiannual financial framework (MFF) 2021-2027.
Using a working document on the post-2020 CAP prepared by the Romanian Presidency of the Council as a starting point, the experts of the Special Committee on Agriculture (SCA) discussed various topics, including the reduction of payments. Member States confirmed that there are differences of opinion on the degression of aid (see EUROPE 12181).
Some delegations (Italy, Slovenia, Slovakia, Finland and the Czech Republic) asked for the scope for reduction of basic income support payments to be restricted.
Some others (Austria, Germany, Spain, Ireland, Sweden, Netherlands, Portugal, etc.) called for payments from the environmental programme (eco-schemes) to be excluded from the reduction and a few countries (Austria, Bulgaria, Greece, Spain, etc.) called for aid to young farmers to be excluded from the reduction. Italy in particular asked for more flexibility in the deduction of labour costs (degression of aid).
Several countries are calling for the capping measure to be optional, while others (including France, Ireland, Portugal and Spain) want a mandatory regime for all countries. Germany and Hungary believe that a decision on the cap should be part of the discussions on the next MFF.
Crisis reserve. The Commission explained that, without the proposed carry-over mechanism needed to build up the new agricultural crisis reserve from 2021 onwards, financial discipline (reduction of direct aid) of 5% would be necessary. The Commission also advised against setting differentiated thresholds for financial discipline at Member State level.
Delegations were divided on the carry-over of unused amounts from the current crisis reserve (Germany, France and the Netherlands were in favour, while Poland, Hungary and Italy were opposed) and on maintaining a threshold (exemption) of €2,000 for financial discipline (Poland, Hungary, Spain and Portugal were in favour of maintaining this exemption, while Germany, Luxembourg, Denmark and Belgium wanted this threshold to be removed).
The Romanian Presidency of the Council will prepare compromise texts on the proposals on the post-2020 CAP in order to help the Council arrive at a general approach in June. (Original version in French by Lionel Changeur)