The ‘Programme of Options Specifically Relating to Remoteness and Insularity’ (POSEI) did “not address all the specific needs and constraints of the outermost regions”, concluded the Court of Auditors of the European Union in its report published on Monday 26 January. Not only has European support helped to maintain competitiveness in only a few agricultural sectors, but the diversification of crop and livestock production is making only minor progress. What’s more, the viability of the agricultural sector is in jeopardy.
Each year, the EU injects up to €653 million into the POSEI programme. This system is complemented by other instruments outside the Common Agricultural Policy (CAP), such as cohesion policy, State aid and trade policy. It applies to the overseas regions of three Member States: France (Guadeloupe, Martinique, French Guiana, Réunion, Saint-Martin and Mayotte), Spain (the Canary Islands) and Portugal (the Azores and Madeira).
With over 60% of financial support going to traditional sectors, the POSEI programme has helped to maintain the competitiveness of the banana sector as a whole and the dairy sector in the Azores. The banana sector is the main beneficiary, with 42% of the budget, i.e. €277 million in 2023.
But the programme has not succeeded in maintaining the competitiveness of tomatoes in the Canary Islands or sugar in France’s outermost regions, which have lost market share in the face of strong competition from third countries.
The Court of Auditors therefore recommends that traditional activities be re-examined through a number of actions, including: - calculate and assess how support for the banana sector can be better balanced with other sectors; - examine how the position of banana producers in the value chain can be improved.
In addition, the auditors suggest improving the assessment of the impact of the benefits of import aid on end-users, for example by sharing best practice in this area.
Lastly, the auditors pointed out that permanent crops, which are very common, deplete the soil due to a lack of diversification and crop rotation. They point to a lack of adaptation to climate issues in the POSEI programme, at a time when extreme weather phenomena such as cyclones and long periods of drought are on the increase. Added to this is the ageing of the farming population.
Read the report: https://aeur.eu/f/kf2 (Original version in French by Anne Damiani)