Brussels, 28/10/2002 (Agence Europe) - Commissioner Fischler felt that his proposals on mid-term review of the Common Agricultural Policy (CAP) were not "dead" but that they should be adapted after the Brussels Summit. Thus, he admitted that he should fully review the principle of modulating direct aid and provide for changes in the breakdown of direct aid, to be able to finance the status quo policy after 2006. The Commissioner was less pessimistic about the future of the other main direction for reform, uncoupling between the amount of direct aid and the level of production. In his view, this mechanism would be the only solution for complying with the EU's international commitments made in Doha (reduction of aid which upsets trade). At least, he noted in Brussels, it is not ruled out in the wording of the Summit's conclusions.
Mr Fischler also explained that the reforms needed in the milk sector (where the cost is estimated at between EUR 1.2 and 1.3 billion) and the sugar sector, as well as a large part (70%) of direct payments for the new Member States should be financed from the budget between 2007 and 2013. All these expenses will cost EUR 5 billion, he warned. And it is only by sharing out the funds in a just manner between all those concerned that we shall manage to ease the pressure on the farm budget, he insisted, specifying that there could not be a margin of manoeuvre elsewhere than in direct aid.
As the ceiling for aid agreed by the Summit does not concern rural development spending, the volume of the latter will be the subject of a decision at the time of deliberations on the next financial perspectives, Mr Fischler explained. According to the agreement reached in Brussels between the Heads of State and Government, spending under market policies for the Fifteen plus direct aid for the ten new Member States (outside rural development) will be ceilinged at current prices of EUR 45.306 billion in total in 2007 and up to 48.574 billion in 2013 taking inflation of 1% annually into account.