Agriculture ministers from EU countries broadly welcomed the European Commission’s action plan on fertilisers, on Tuesday 26 May in Brussels, while stressing the need to strike a balance between urgent responses to the price crisis and a long-term strategy aimed at reducing external dependency (see EUROPE 13873/10).
Many ministers considered that the measures proposed, particularly in the short and medium term, remain insufficient.
Croatia, Greece and Lithuania notably regretted a lack of ambition, considering that the current crisis calls for stronger and faster instruments, beyond the existing tools of the common agricultural policy (CAP).
A broad group of Member States, including Poland, France, Finland, Lithuania, Croatia, Greece and Austria, insisted on the need for immediate support measures for farmers, notably through the rapid activation of the agricultural crisis reserve and greater flexibility as regards payments under the common agricultural policy (CAP).
France welcomed the proposal “to top up the agricultural reserve using part of the available margins below the ceiling”. Significant funds will be needed to support farmers in difficulty, including French cereal growers.
Discussions between ministers also highlighted differences over European climate instruments, in particular the Carbon Border Adjustment Mechanism (CBAM) and Emissions Trading System (ETS).
Nordic countries, including Denmark, Sweden and Finland, expressed clear support for these tools, seen as essential to encourage decarbonisation and reduce strategic dependencies, notably on Russian and Belarusian fertilisers.
By contrast, Lithuania, Poland and Latvia expressed concerns about the indirect effects of the CBAM on agricultural production costs, with some calling for better account to be taken of its impact on the sector’s competitiveness.
Latvia clearly regretted that the Commission had not proposed suspending the CBAM for fertilisers. The Italian minister, Francesco Lollobrigida, called for the ETS to be adjusted in order to avoid any further increase in production costs for European farmers compared with their international competitors. French delegation, for its part, supported a better assessment at European level of impact of CBAM and ETS on price of fertilisers for farmers.
On long-term measures, a broad consensus emerged around need to reduce the Union’s dependence on fertiliser imports, notably from Russia and Belarus, and to strengthen European production. The ministers also defended measures aimed at speeding up development of alternative solutions: bio-based fertilisers, nutrient recycling, circular economy, development of digestates from methanisation and production of green ammonia.
Netherlands and Belgium stressed the potential of circular models, while the Nordic countries highlighted innovations linked to green hydrogen and biogas as levers for structural transformation of the sector.
Several delegations underscored the budgetary limits of the current CAP instruments in responding to the crisis. Poland expressed concerns over proposals relating to post-2027 CAP. Other States, such as Ireland and Luxembourg, recalled that the future CAP will have to remain well funded and flexible in order to support both the environmental transition and economic viability of farms.
Amending budget on 10 June. The Commissioner for Agriculture, Christophe Hansen, specified that the Commission would mobilise “targeted support in the form of a reinforced crisis reserve”.
Around €200 million remain, “but we expect that it would be at least doubled, but this will, of course, depend on your finance ministers as well as to the budgetary authority” (Council and Parliament). A draft amending budget will be presented on 10 June, Mr Hansen said.
As regards liquidity tools, the Commissioner cited the flexibility of the CAP. Some Member States have funds that are not being used, particularly under the second pillar (rural development). There are also State aid possibilities, advice on nutrient management and practical solutions for digestates, with appropriate safeguards.
In the longer term, according to Mr Hansen, domestic production must be strengthened, bio-based and low-carbon fertilisers supported and the single market for inorganic fertilisers improved.
As regards the ETS system, “we will assess how to support industrial decarbonisation including in the fertiliser value chain while also keeping Europe’s production capacity and farmers’ needs firmly in view”, the Commissioner said. (Original version in French by Lionel Changeur)