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Europe Daily Bulletin No. 13781
SECTORAL POLICIES / Agriculture

European ministers welcome €45 billion budget increase for CAP

At an extraordinary meeting in Brussels, on Wednesday 7 January, with the relevant European Commissioners, European agriculture ministers generally welcomed the announcement made the day before of a budget increase for the common agricultural policy (CAP) for the period 2028-2034, with the early release of €45 billion from 2028 (see EUROPE 13780/1).

This last-minute concession is intended to facilitate acceptance of the EU-Mercosur free trade agreement, which the Commission could sign on 12 January, despite the persistent opposition from many European farmers (see EUROPE 13781/1).

The Commissioner for Agriculture, Christophe Hansen, said that, in the future CAP, “income support is safeguarded and guaranteed for farmers”.

In addition to the minimum €300 billion ring-fenced for farmers in the next Multiannual Financial Framework (MFF), we proposed to dedicate at least 10% of resources of each national and regional partnership plan to rural development. This represents close to €49 billion (€63 billion including the Catalyst Loan). The Commission has also proposed that Member States mobilise an additional €45 billion to support farmers and rural communities. These would be additional funds for agriculture, the Commissioner promised. “We listened to concerns and we delivered”, said the Commissioner.

At the end of the meeting, the French Minister for Agriculture, Annie Genevard, welcomed the fact that “certain appropriations have been redirected towards agricultural measures. It is a first step. Obviously, we are at the beginning of a negotiation process that will take some time, during which we will be defending an adequate budget, an autonomous budget and a budget that is commensurate with the challenges”.

French President Emmanuel Macron had previously welcomed the fact that “France will thus be able to guarantee the maintenance of its current level of aid until 2034”.

For the Spanish Minister, Luis Planas, the proposal to bring forward €45 billion in liquidity to be used for CAP objectives “is an important and interesting step forward for Spain”. However, he acknowledged that “we still have a long way to go”.

The EPP Group in the European Parliament believes that the Commission’s decision “is the result of our constant political pressure. For months we have been demanding that European farmers should not be left alone to face new challenges”.

Against a backdrop of strong agricultural protests in France, MEP Céline Imart (EPP, French) said that the Commission “did not propose a budget increase, but rather an early use of funds placed in reserve under the next Multiannual Financial Framework”. From 2028 onwards, Member States will only be able to allocate 75% of their national envelopes to the national and regional partnership plans (NRPPs), with the remaining 25% held in a budgetary flexibility reserve, which may be reallocated at mid-term, in 2031. This would “virtually” increase the CAP to €342 billion, according to Ms Imart. The Commission is proposing to bring forward the use of part of this reserve from 2028, on a strictly voluntary basis.

Pesticides. European farmers are denouncing the use by Mercosur countries of pesticides banned in the European Union. France has published a decree (https://aeur.eu/f/k6q ), which entered into force on Thursday 8 January, suspending imports of certain South American agricultural products (avocados, guavas, mangoes, etc.) treated with five fungicides and herbicides not permitted in the EU.

The Commissioner for Health, Olivér Várhelyi, has said that he will present a draft regulation aimed at lowering maximum residue levels to “ technical zero” for the active substances carbendazim, benomyl and thiophanate-methyl “from February”, and at banning the import of products containing such residues. This measure concerns in particular imports of citrus fruit, mangoes and papayas.

The Commission has confirmed that import controls will be stepped up, and has indicated that dedicated staff will be deployed at the main points of entry for imported foodstuffs, particularly ports.

Fertilisers. Ministers also discussed the impact of the Carbon Border Adjustment Mechanism (CBAM), which came into force on 1 January, on the cost of fertilisers. Many called for a temporary suspension of the CBAM on fertiliser imports.

The Commissioner for Trade, Maroš Šefčovič, reportedly replied that “the problem has now been clearly identified by the Commission” and that “a proposal along these lines will be made”, possibly with retroactive effect to 1 January 2026, according to France. Mr Planas said that for urea and ammonia, a reduction in customs duties was envisaged to improve access to these products.

Document summarising the announcements: https://aeur.eu/f/k6x (Original version in French by Lionel Changeur)

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