Almost three years after the European Commission presented its proposals, the EU institutions hope to finalise a political agreement on the main elements of a reformed Common Agricultural Policy (CAP) on 27 May after three days of debate (see EUROPE 12719/5).
The main issues that remain problematic are the modalities of eco-regimes, enhanced cross-compliance, social standards and market management measures.
A ‘super trilogue’ is scheduled to take place between 25 and 27 May, while the Agriculture Council will meet on 26 and 27 May to confirm the compromises reached in the talks between the EU Council, the Parliament and the European Commission.
A first trilogue session will be held on 25 May. On the morning of the 26th, the ministers will make a first assessment of the state of discussions. The trilogue will resume in the afternoon, and in the evening a new item will be organised in the EU Council. The Portuguese Presidency of the EU Council is hoping for an agreement on 26 May. If this does not happen, a further trilogue could take place on 27 May, to conclude the discussions in the evening.
Eco-regimes. The Portuguese Presidency suggests a gradual approach so that the share of aid devoted to eco-regimes increases from 22% in 2023 to 25% in 2025. The Parliament, which had expected 30%, opposes the two-year ‘learning phase’ sought by the EU Council.
Germany has announced that it will impose a minimum of 25% while other countries do not want to exceed 20%.
Redistribution of direct payments. The European Parliament and the EU Council agree, with regard to capping, degressivity and redistributive payments, to set an amount to be distributed to small and medium-sized farms and to allow Member States to choose one or more of these mechanisms (capping, degressivity or redistributive payment) to reach this amount.
The Portuguese Presidency is thought to have proposed that this amount be 7.5%, as opposed to the 12% championed by the Commission and the European Parliament The redistributive payment would be compulsory, while capping and degressivity would remain optional.
Social conditionality. The Portuguese authorities have drafted a working document on ‘The Social Dimension’ in order to respond to some of the demands of MEPs.
It is proposed that Member States carry out and provide to the Commission, by 31 December 2024 at the latest, an assessment of working and employment conditions, employers’ obligations and health and safety at work in the agricultural sector. This assessment would be part of the strategic plans and the European Commission could ask a Member State to take corrective action, if necessary.
The European Parliament is calling for real social conditionality (reduction of aid in case of infringement of labour law regulations). The EU Council (except France, Luxembourg, and Spain) is very much against it. The Commission is looking for a middle way.
On the Common Market Organisation (CMO), one last trilogue was held on Friday 21 May before the final negotiations. The main sticking points are - the list of products eligible for public intervention (the EU Council, at this stage, refuses to add sugar); - the drafting of a ‘joint declaration’ on trade (the European Parliament is calling in particular for provisions that would put an end to tolerances on pesticide residues in products imported from third countries).
The Commission and several Member States are concerned about provisions that would run counter to WTO rules.
On horizontal regulation, the discussions will focus on the amount of the new agricultural crisis reserve. The EU Council is requesting €450 million per year, while the European Parliament is asking for at least €450 million.
Sander emphasizes “economic sustainability”. On Friday, Anne Sander MEP (EPP, France) told journalists that the reform should go further in terms of environmental ambition, “without forgetting economic sustainability”. She noted that, thanks to this reform, “100% of aid is conditional on environmental measures”. On eco-regimes, she expressed a preference for a 20% rate. “Realistic and pragmatic” measures are needed, she said. (Original version in French by Lionel Changeur)