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Europe Daily Bulletin No. 12501
SECTORAL POLICIES / Agriculture

EU ministers concerned about potential impact of European Green Deal on agricultural sector

EU agriculture ministers, who held an exchange of views by videoconference on Monday 8 June, expressed a number of concerns about the impact that the ‘Farm to Fork’ and ‘biodiversity 2030’ strategies could have on the Common Agricultural Policy (CAP). “The European Commission will continue to monitor the impact of these strategies on food security and on the competitiveness of our farmers”, promised EU Agriculture Commissioner Janusz Wojciechowski from the outset.

However, almost all the delegations requested for a start that the European Commission present an impact study (economic, social and environmental) of the two strategies on the agri-food sector. Member States are particularly concerned about the very ambitious targets for reducing pesticide use and risks (-50%), the use of fertilisers and antibiotics (-50%), and the area returned to nature (10%). They also have questions about data collection and the starting point for these objectives. The European Commissioner for Food Safety, Stella Kyriakides, replied that when truly binding targets are set, then legislative proposals will be accompanied, as they should be, by impact studies.

Strategic plans. In the meantime, by the end of 2020, the Commission will make a series of recommendations to each Member State on their future strategic plans (due to enter into force in 2023), so that they incorporate some of the objectives set by the European Green Deal.

The starting point is different from one Member State to another, and discussions will be difficult with some”, Janusz Wojciechowski admitted. The European Commission has already announced that it will not present a new legislative proposal for the CAP, considering that the text on the table is perfectly compatible with both strategies’ objectives, but it is in favour of introducing a minimum percentage of the first pillar envelope (direct payment and market measures) devoted to the new eco-schemes. France and Germany, in particular, have expressed their support for this idea, which they believe will strengthen the CAP’s common character. However, a number of other countries (Italy, Ireland, and Estonia) are opposed to this, believing that it runs counter to the principle of subsidiarity.

In general, the Agriculture Ministers expect clarification on how the bilateral discussions between the Commission and the Member States will be conducted and demand that this process be carried out in full transparency.

Imports. Another concern expressed by a large number of delegations (Poland, Austria, France, Italy, Ireland, Lithuania, Romania, Czech Republic, Belgium, Malta, Germany) is unfair competition from food imports from non-Member States that do not adhere to the new European environmental standards. “Let’s not import the agriculture we don’t want at home”, summarised French Minister Didier Guillaume. Italy added: “We cannot put pressure on our companies without asking non-Member States to do the same, otherwise we will lose more and more competitiveness”.

Moreover, several countries consider that the target of 25% of organically cultivated land by 2030 (compared to around 8% today) is unreachable, or even dangerous for EU food security (Poland, Ireland and Bulgaria, among others). “A market-based approach - i.e. on demand rather than supply - is essential if consumers are to make their own choice to support the sector”, said Irish Minister Michael Creed. The Commission intends to present a 2021-2026 action plan for the development of the organic sector in 2020. Commissioner Wojciechowski believes that there is “room in many Member States to develop this market”.

An increased, but still insufficient budget. Finally, delegations unanimously welcomed the European Commission’s recent proposal for the revised 2021-2027 Multiannual Financial Framework, which provides for an increase of €26.5 billion in current prices to the agricultural budget compared to the draft for 2018. However, the vast majority of the delegations also felt that this increase in the agricultural envelope is still insufficient in view of the additional efforts that will be required of farmers under the Green Deal. And all three Baltic States lamented the lack of new proposals on the convergence of support levels between old and new Member States.

The next meeting of the Agriculture Council will take place on 29 June. EU ministers will take stock of the state of the negotiations on the future CAP based on a progress report prepared by the Croatian Presidency just before the handover to Germany.

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